Ralph Lauren Corporation - An Iconic Brand On Sale
William Koldus, CFA, CAIA • 11 Comments
William Koldus, CFA, CAIA • 11 Comments
Thu, Sep. 29, 10:17 AM
- CLSA issues new ratings updates up and down the retail sector.
- Coach (COH +2%) earns a Buy rating due to sales momentum.
- Tiffany (TIF +0.8%) looks appealing with expectations set low.
- Ralph Lauren (RL +1.7%) lands at Buy with it seen as being in the early stages of a turnaround.
- Catching Outperform ratings are Signet (SIG +0.1%), Oxford Industries (OXM +0.9%), Kate Spade (KATE +1.2%), and G-III Apparel Group (GIII +1.2%).
- A lack of drivers at Michael Kors (KORS -0.6%) brings a Sell rating down from CLSA.
- The investment firm starts off coverage on Carter's (CRI -1.7%) with an Underperform rating and sets a price target of $95 on the retailer.
Wed, Aug. 31, 4:26 PM
Wed, Aug. 10, 12:04 PM
Wed, Aug. 10, 9:58 AM
- Results from Fossil (FOSL +5.3%) and Ralph Lauren (RL +8.2%) that came in ahead of some beat-down expectations are helping to provide a lift to other names in the apparel sector. The rally is focused primarily on higher-end sellers.
- Cost streamlining helped to cut into weak tourism and F/X trends.
- Notable gainers include Hanesbrands (HBI +3.6%), PVH Corp (PVH +1%), Luxottica (LUX +1.9%), Kohl's (KSS +2.3%), VF Corp (VFC +1.2%), Guess (GES +1.2%), G-III Apparel (GIII +1.7%), Gildan Activewear (GIL +0.8%), and Vera Bradley (VRA +1.5%).
Wed, Aug. 10, 9:17 AM| Wed, Aug. 10, 9:17 AM | 4 Comments
Wed, Aug. 10, 8:23 AM
- Ralph Lauren (NYSE:RL) reports revenue fell 4% in FQ1 on a constant currency basis.
- Wholesale segment sales fell 5% to $607M, driven lower by weakness in North America.
- Retail sales declined 3% to $907M.
- Licensing revenue fell 8% to $38M.
- Gross profit margin rate +130 bps to 61.1% on a favorable sales mix.
- Operating expenses as a percentage of sales up 180 bps to 52.9% due to the lower level of sales.
- Operating margin rate -80 bps to 8.2%.
- The company paid out an effective tax rate of 29% vs. 30% a year ago.
- Looking ahead, Ralph Lauren sees FQ2 revenue down at a mid-to-high single digit rate and operating margin down 200 to 250 bps.
- Previously: Polo Ralph Lauren beats by $0.17, beats on revenue (Aug. 10)
- RL +4.61% premarket to $99.10.
Wed, Aug. 10, 8:03 AM
Tue, Aug. 9, 5:30 PM
Fri, Jul. 15, 10:02 AM
- Thomas Lee from Fundstrat Market & Equity Research ("our research process combines both top-down strategy and bottoms-up fundamental views, to develop a roadmap of practical and useful investment insights for our clients") identifies 15 stocks that meet his criteria for his current “highest conviction” strategies, which he calls “laggards become leaders” and “stocks are the new bonds.”
- The following stocks are in 1 of 16 groups that have lagged in the bull market (laggards), and have dividend yield greater than the their long-term bond yield (stocks are the new bonds): APD, CAT, CSCO, CVX, HP, IBM, OXY, PCAR, PG, PX, RL, SLB, T, VZ, XOM.
Tue, Jul. 5, 2:43 PM
- Full-price sales of luxury items have dropped sharply since the Brexit vote came in. Data-tracking firm Edited reports global luxury sell outs decreased 60% in the two weeks after the Brexit referendum, compared to the two-week period prior to the vote.
- The sector was already having a challenging year due a drop in Chinese tourism before the shock U.K. result.
- Luxury retailers: Gucci (OTC:PPRUF, OTCPK:PPRUY), Louis Vuitton (OTCPK:LVMUY), Coach (NYSE:COH), Ralph Lauren (NYSE:RL), Michael Kors (NYSE:KORS), Burberry (OTCPK:BURBY), Tiffany (NYSE:TIF), LVMH (OTCPK:LVMHF, OTCPK:LVMUY), Richemont (OTCPK:CFRUY, OTCPK:CFRHF), Remy Cointreau (OTCPK:REMYF, OTCPK:REMYY).
Tue, Jun. 21, 4:11 PM
Fri, Jun. 10, 10:59 AM
- The dramatic changes at Ralph Lauren (RL -0.1%) include the closure of about 50 stores and about a thousand job reductions, but perhaps even more surprising was the news that the luxury apparel company is going to try narrow its focus to three core brands and take a page out of the fast-fashion playbook by creating test batches of products before mass producing them.
- RetailWire notes the fast-fashion play was tipped off last fall when former H&M and Gap exec Stefan Larsson took over for Ralph Lauren as CEO.
- Part of Ralph Lauren's problems have been the slow reaction by the comapny to the increased spending by consumers on athleisure and fast-fashion. F/X pressure has been the other major drag on earnings.
- Shares of Ralph Lauren are down 29% over the last year.
Thu, Jun. 9, 5:54 PM
- Coach (NYSE:COH) CFO Jane Nielsen is leaving the company to become Ralph Lauren's (NYSE:RL) CFO. She's expected to remain with Coach until August, and will start her new job on Sep. 6. IR/communications chief Andrea Resnick is expected to serve as interim CFO while Coach searches for Nielsen's successor.
- At Ralph Lauren, Nielsen will be replacing Bob Madore as CFO. Madore will remain with the company until Sep. 30.
- Ralph Lauren also says it has hired Amazon logistics exec Bill Campbell to be its SVP of global supply chain and inventory management, and Jeff Kuster, formerly an exec at HSN, Fruit of the Loom, and VF Corp., its Americas group president. Kuster will "oversee all commercial activities for the Americas region, including Wholesale, Retail, E-Commerce, Factory, Travel Retail and Latin America."
Tue, Jun. 7, 9:13 AM
Tue, Jun. 7, 9:06 AM
- Ralph Lauren (NYSE:RL) is hosting an investor and analyst meeting today.
- The company is already out with some guidance updates even before execs take the stage. RL anticipates it will take a restructuring charge of up to $400M in FY17.
- FQ1 revenue is seen falling at a mid single-digit range amid store closures and operating margin is forecast to be down 110 to 160 bps.
- The FQ1 tax rate is estimated to be approximately 29%.
- Ralph Lauren also guides for capital expenditures of approximately $375M in FY17 and ~$200M in share repurchases.
- A long-term strategy called the Way Forward Plan is being presented by management at the event. Cutting costs and reducing the company's real estate footprint are front and center of the new direction.
- RL -10.43% premarket to $86.28.
Fri, May 20, 8:16 AM
- BB&T initiates coverage on Ralph Lauren (NYSE:RL) with a Buy rating and $115 price target.
- Analyst Corinna Freedman thinks the turnaround plan at Ralph Lauren will lead to improved results with younger consumers.
- The F/X headaches for Ralph Lauren have overshadowed some of the underlying international growth opportunities, notes Freedman.
- Last week, SA contributor Andrew Labutka broke down Ralph Lauren's FQ4 results.
- Ralph Lauren closed at $89.16 yesterday vs. a 52-week trading range of $82.15 to $141.03.