RALPH LAUREN (RL) has reported 71.88 percent plunge in profit for the quarter ended Oct. 01, 2016. The company has earned $45 million, or $0.55 a share in the quarter, compared with $160 million, or $1.86 a share for the same period last year. On an adjusted basis, the company has earned $158 million, or $1.90 a share for the quarter.
Revenue during the quarter dropped 7.56 percent to $1,821 million from $1,970 million in the previous year period. Gross margin for the quarter contracted 411 basis points over the previous year period to 52.39 percent. Total expenses were 95.83 percent of quarterly revenues, up from 88.32 percent for the same period last year. That has resulted in a contraction of 750 basis points in operating margin to 4.17 percent.
Operating income for the quarter was $76 million, compared with $230 million in the previous year period.
However, the adjusted operating profit for the quarter stood at $226 million.
"Our team is intensely focused on driving the execution of the Way Forward plan," said Stefan Larsson, president and chief executive officer. "While it is still the early stages of our plan, we made meaningful progress and we are on track to deliver against Fiscal 2017 guidance.
Working capital declinesRALPH LAUREN has witnessed a decline in the working capital over the last year. It stood at $1,759 million as at Oct. 01, 2016, down 23.59 percent or $543 million from $2,302 million on Sep. 26, 2015. Current ratio was at 2.45 as on Oct. 01, 2016, down from 2.80 on Sep. 26, 2015. Cash conversion cycle (CCC) has decreased to 67 days for the quarter from 78 days for the last year period. Days sales outstanding went down to 14 days for the quarter compared with 15 days for the same period last year.
Days inventory outstanding has decreased to 62 days for the quarter compared with 73 days for the previous year period. At the same time, days payable outstanding went down to 8 days for the quarter from 11 for the same period last year.
Debt comes down marginallyRALPH LAUREN has recorded a decline in total debt over the last one year. It stood at $692 million as on Oct. 01, 2016, down 4.81 percent or $35 million from $727 million on Sep. 26, 2015. Total debt was 11.41 percent of total assets as on Oct. 01, 2016, compared with 11.28 percent on Sep. 26, 2015. Debt to equity ratio was almost stable at 0.19 as on Oct. 01, 2016, when compared with the last year. Interest coverage ratio deteriorated to 19 for the quarter from 57.50 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
