Ralph Lauren to report 3Q results Wednesday
NEW YORK (AP) — Ralph Lauren Corp.'s fiscal third-quarter earnings report Wednesday will shed some light on how affluent shoppers behaved during the winter holidays amid economic uncertainty.
WHAT TO WATCH FOR: Coach Inc. and Tiffany & Co., which tend to have customers with higher incomes, have reported cautious holiday spending. Analysts will be looking to see if Ralph Lauren's holiday quarter results reflect this trend as well.
The company is also likely to update investors on its European business, which it has cited as a challenge in previous quarters.
Ralph Lauren's clothing and home goods brands include Ralph Lauren Collection, Polo by Ralph Lauren and others. It sells its products at department stores, smaller shops and its own retail locations.
WHY IT MATTERS: If Ralph Lauren's results show strong buying trends from shoppers, it would be a positive sign for consumer spending, particularly by the wealthy. Consumer spending is closely watched by economists because it accounts for 70 percent of economic activity.
WHAT'S EXPECTED: Analysts expect net income of $2.20 per share on revenue of $1.85 billion, according to FactSet.
LAST YEAR'S QUARTER: The New York company, formerly known as Polo Ralph Lauren, had net income of $1.78 per share on revenue of $1.8 billion.