NYSE$RL

Ralph Lauren Corp · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Ralph Lauren's Q2 2021 results reflected continued recovery from COVID-19 impacts, with expense reductions and inventory discipline.

Ralph Lauren reported a decrease in revenue by 30% to $1.2 billion, but adjusted earnings per diluted share were $1.44, compared to $2.55 in the prior year. The company maintained balance sheet strength with $2.4 billion in cash and investments and continued expense reductions and inventory discipline.

  • Maintained balance sheet strength and liquidity with $2.4 billion in cash and investments.
  • Second quarter revenues were $1.2 billion, reflecting continued recovery from COVID-19-related impacts.
  • Second quarter average unit retail increased 26% driven by ongoing brand elevation.
  • Announced restructuring actions to position the company for future growth.

Headline financials

Total Revenue

$1.19B

Previous: $1.71B-30.0%
EPS (adj)

$1.44

Previous: $2.26-36.3%
Free Cash Flow

-$39.1M

Previous: $182M-121.5%
Net Income

-$39.1M

Previous: $182M-121.5%
Operating Income

-$20.3M

Previous: $233M-108.7%
Gross Profit

$799M

Previous: $1.05B-23.8%
Cash & Equivalents

$2.01B

Previous: $548M+267.1%
Total Assets

$7.75B

Previous: $7.23B+7.2%
Stock-Based Comp

$19.5M

Previous: $27.8M-29.9%

Revenue & EPS history

Ralph Lauren · Revenue · Quarterly

$1.19B

Q2 2021-30%vs Q2 2020
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Ralph Lauren · $1.19B total across 4 segments · Q2 2021

  • North America
    $543M
  • Europe
    $360M
  • Asia
    $237M
  • Other
    $54.5M

Forward guidance

Ralph Lauren expects financial results for Q3 and full year Fiscal 2021 to be adversely impacted by the pandemic and prolonged demand recovery. They anticipate gross margin expansion continuing through the second half of the fiscal year, also at a more moderate pace compared to the first half, and a slight decline in operating expenses.

Tailwinds

  • Continued gross margin expansion through the second half of the fiscal year.
  • Slight decline in operating expenses.

Headwinds

  • Ongoing high level of uncertainty surrounding COVID-19.
  • Financial results for both the third quarter and full year Fiscal 2021 to continue to be adversely impacted by the pandemic
  • Prolonged demand recovery.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+1.3%

Avg return

Earnings day

+2.2%

Avg return

5 days after

+2.6%

Avg return

30 days after

52%

36 / 69 earnings

Positive

+20.8%

Q2 2016

Best reaction

-24.5%

Q3 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026+12.6%+14.2%+25.2%
Q3 2026-4.5%+0.4%-4.6%
Q2 2026-0.6%+5.3%+16.3%
Q1 2026-6.4%-1.1%+3.0%
Q4 2025+1.1%+4.5%-3.5%
Q3 2025+9.7%+9.3%-6.6%
Q2 2025+7.0%+0.7%+10.9%
Q1 2025-2.0%-3.6%+4.8%
Q4 2024+5.6%+10.4%+11.2%
Q3 2024+18.9%+19.2%+19.6%
Q2 2024+3.3%+2.2%+16.7%
Q1 2024-5.5%-6.9%-9.0%
Q4 2023+4.2%+1.0%+10.5%
Q3 2023+1.0%+4.3%-3.2%
Q2 2023+15.7%+15.1%+19.1%
Q1 2023-5.6%-2.3%-6.9%
Q4 2022+3.0%+8.7%+2.6%
Q3 2022+4.4%+9.7%+2.1%
Q2 2022-5.2%-1.7%-8.2%
Q1 2022+4.4%+4.4%-0.4%
Q4 2021-7.6%-7.2%-13.4%
Q3 2021+3.1%+4.9%+16.2%
Q2 2021-10.0%-7.0%+18.4%
Q1 2021-1.7%-5.4%+6.4%
Q4 2020-1.7%-5.7%-16.8%
Q3 2020+8.2%+6.4%-4.5%
Q2 2020+12.8%+10.4%+10.7%
Q1 2020-6.3%-11.1%-20.9%
Q4 2019-2.2%-4.9%-4.8%
Q3 2019+10.1%+9.1%+7.7%
Q2 2019-6.9%-9.4%-20.4%
Q1 2019-5.2%-4.1%-3.0%
Q4 2018+15.6%+17.7%+11.7%
Q3 2018-3.9%-6.6%-6.9%
Q2 2018+1.4%-5.0%+6.9%
Q1 2018+11.4%+7.2%+13.6%
Q4 2017-4.8%-6.9%-0.9%
Q3 2017-12.8%-13.0%-8.7%
Q2 2017+4.8%+10.8%+6.7%
Q1 2017+14.3%+14.8%+6.0%
Q4 2016+1.2%
Q3 2016-24.5%
Q2 2016+20.8%
Q1 2016-2.5%
Q4 2015-1.1%
Q3 2015-17.0%
Q2 2015+3.2%
Q1 2015+1.0%
Q4 2014-3.1%
Q3 2014-1.3%
Q2 2014+0.9%
Q1 2014-6.2%
Q4 2013-3.8%
Q3 2013+8.0%
Q2 2013+1.4%
Q1 2013-3.0%
Q4 2009-0.0%
Q4 2012+2.5%
Q3 2012+9.8%
Q2 2012-4.9%
Q1 2012+8.9%
Q4 2011+10.2%
Q2 2011+10.2%
Q3 2010+9.7%
Q3 2011+9.7%
Q2 2010-5.5%
Q1 2011-5.5%
Q4 2010-5.5%
Q1 2010-5.5%

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