Ralph Lauren Corporation - An Iconic Brand On Sale
William Koldus, CFA, CAIA • 11 Comments
William Koldus, CFA, CAIA • 11 Comments
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.
Sat, May 14, 11:01 AM
- The retail sector stays in focus next week with Target (NYSE:TGT), Wal-Mart (NYSE:WMT), TJX Companies (NYSE:TJX), and Ross Stores (NASDAQ:ROST) all due to report on Q1 earnings to follow on a week of dismal reports and guidance from the department store sector (Nordstrom, L Brands, Macy's, Kohl's). Home improvement chains Home Depot (NYSE:HD) and Lowe's (NYSE:LOW) are also due to spill numbers.
- The story from the Commerce Department's April read of retail sales (+3.0% Y/Y, +1.3% M/M) is one of a consumer spending on housing, entertainment, and personal care/fitness over apparel and general merchandise. The 10% Y/Y gain in the nonstore retailer category also tipped that the Amazon (NASDAQ:AMZN) Effect is magnifying.
- Amplify ETFs CEO Christian Magoon tells Seeking Alpha that the traditional retail model appears to be broken. Amplify's Online Retail ETF (NASDAQ:IBUY) is a bet on companies such as Netflix (NASDAQ:NFLX), GrubHub (NYSE:GRUB), Blue Nile (NASDAQ:NILE), and Shopify (NYSE:SHOP) that are reeling in millennial dollars.
- Magoon on retail: "Traditional retailers face the headwinds of higher cost structures including the very real threat of increasing wages in the form of the $15 minimum wage campaign. Less flexible with inventory management, they also are more vulnerable to issues like weather and changing consumer preferences."
- Retail ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, PBJ, IYK, FXD, IYC, RHS, FDIS, PEJ, FSTA, PSL, SCC, RCD, UCC, PEZ, PMR, PSCC, UGE, PSCD, SZK, BITE.
- Apparel stocks: KATE, ANN, LULU, PVH, VNCE, CRI, UA, HBI, VFC, COLM, GIL, SQBG, JCP, KSS, DDS, M, JWN, ARO, AEO, ANF, WTSL, TLYS, CACH, ZUMZ, PSUN, EXPR, BKE, GIII, SQBG, HBI, VRA, ICON, SHOO, PERY, DXLG, BONT, GES, URBN, RL,GIL, NKE, OXM, HBI, VNCE, PERY, ICON, FL.
Thu, May 12, 8:34 AM
- Ralph Lauren (NYSE:RL) reports revenue were flat on a constant currency basis in FQ4.
- Wholesale segment sales declined 6.4% to $942M (-5.1% on a constant currency basis) primarily due to a decline in sales in North America.
- Retail sales increased 5.6% to $889M (+6.7% on a constant currency basis).
- Licensing revenue grew 8.5% to $40M (+7.8% on a constant currency basis).
- Gross margin rate squeezed 90 bps to 54.5%.
- Operating expenses rate rose 220 bps to 46.1% due to fixed expense deleverage and incremental investments in infrastructure and new stores.
- Operating margin rate slipped 370 bps to 6.4%.
- RL +3.56% premarket.
Thu, May 12, 8:07 AM
Wed, May 11, 5:30 PM
Wed, May 11, 10:04 AM
- A devastating F/X-ravaged report turned in by Fossil (FOSL -31.3%) and a general sense that U.S. consumer spending on apparel is weak (L Brands, Gap, Macy's) is taking a toll on some high-end retailers.
- Michael Kors (KORS -10.8%), Movado (MOV -7.6%), G-III Apparel (GIII -9.9%), Kate Spade (KATE -2.9%), PVH (PVH -5.6%), Ralph Lauren (RL -5.8%), Coach (COH -3.8%), and Luxottica (LUX -1.9%) are all spinning lower with anxiety over sales trends rising.
- Previously: Fossil crushed after sales and margins shrink (May 10)
- Previously: Specialty retail not looking so special to investors (May 11)
Fri, Mar. 11, 4:17 PM
Thu, Feb. 25, 7:36 PM
- Ralph Lauren (RL +2.2%) has announced that Christopher Peterson, its president of Global Brands, is departing the company as of May 31.
- With his departure, the company's streamlining senior leadership. Afterward, global brand presidents will report directly to president/CEO Stefan Larsson.
- The position of president of Global Brands that's being eliminated was created just last April. Peterson moved into that job from his previous roles as chief financial officer, chief administrative officer and executive VP.
- He had been with Ralph Lauren since 2012.
- After hours: RL -1%.
Thu, Feb. 18, 1:48 PM
Ralph Lauren Corp. engages in the design, marketing and distribution of premium lifestyle products in four categories: apparel, home, accessories and fragrances. The company's brand names, which include Polo by Ralph Lauren, Ralph Lauren Purple Label, Ralph Lauren Collection, Black Label, Blue... More
Sector: Consumer Goods
Industry: Textile - Apparel Clothing
Country: United States
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