Ralph Lauren Corporation (RL - Free Report), a designer, marketer and distributor of lifestyle products, released fourth-quarter fiscal 2017 results, wherein adjusted earnings of 89 cents came substantially ahead of the Zacks Consensus Estimate of 79 cents and climbed 1.1% from 88 cents earned in the year-ago quarter.

Earnings Estimate Revision: The Zacks Consensus Estimate for fiscal 2017 has been unchanged in the last 30 days, while that for fiscal 2018 has trended downwards. However, Ralph Lauren’s performance over the trailing four quarters, excluding the quarter under review, remains encouraging with an average beat of 12.6%.

Revenues: Ralph Lauren’s net revenues dropped 16.3% to $1,565.4 million, which also fell short of the Zacks Consensus Estimate of $1,593 million. On a currency neutral and 13-week comparable basis, revenues fell 12%. Revenue decline was attributable to sluggish traffic, with both International and North American revenues remaining soft.

Outlook: The company projects currency neutral net revenues to decline 8% - 9% in fiscal 2018. Foreign currency is estimated to hurt revenue growth by nearly 150 basis points in the fiscal. For first-quarter fiscal 2018, management envisions currency neutral net revenue to drop in low double-digits range. Foreign currency is estimated to hurt revenue growth by nearly 225 basis points in the first quarter. Further, the company will adopt Accounting Standard Update (ASU) 2016-09 in fiscal 2018, which is likely to have an impact on its effective tax rate, among other things.  

Key Events: The company repurchased shares worth $100 million during the quarter, thus bringing the year-to-date buybacks to $200 million. Also, as part of several operational amendments under its ongoing Way Forward plan, management announced alterations in its reportable segments during the fourth quarter. The company’s new reportable segments are – North America, Europe and Asia.

Zacks Rank: Currently, Ralph Lauren carries a Zacks Rank #3 (Hold) which is subject to change following the earnings announcement.

Stock Movement: Ralph Lauren’s shares jumped nearly 2.5% during pre-market trading hours following the earnings release.