- Telsey Advisory Group Analyst Dana Telsey reiterated an Outperform rating on shares of Ralph Lauren Corp RL with a Price target of $140.
- RL reported 4QF23 EPS from $0.90, above the consensus. Reported revenue rose 1.2% to $1.541 billion, beating consensus.
- The analyst said the uptick was driven by better-than-expected revenue growth and higher cost efficiencies.
- Asia has been a particular strength and AUR’s continued growth continues to demonstrate the success of the company’s efforts to expand offerings and attract high-value new customers.
- The analyst added that operating expenses rose an impressive 280 basis points to 57.0%, beating consensus.
- After a sharp rise in the fourth quarter, the FY24 guidance comes in slightly ahead of expectations, while the first-quarter revenue guidance somewhat flimsy reflects the changes in wholesale trade as the supply chain normalizes, the analyst commented.
- According to the analyst, RL’s recent results show that key opportunities continue to rise in importance, both by category and by region, underscoring the broad appeal of the brand and its potential.
- The analyst concluded that despite the ongoing macroeconomic challenges, he believes the company has the right strategies in place to deliver accelerated revenue growth on a stronger footing, while delivering cost advantages and increasing operating margins.
- price action: RL shares are trading up 5.00% at $113.64 at last check on Thursday.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
[ad_2]
Source story
