Polo Ralph Lauren CorporationNYSE
Ralph Lauren Corporation - An Iconic Brand On Sale
William Koldus, CFA, CAIA • 11 Comments
William Koldus, CFA, CAIA • 11 Comments
Mon, Nov. 14, 10:15 AM
- Clothing and footwear stocks are jetting higher as more analysts bump up expectations on consumer spending in Q4 and broadly forecast tax relief for the consumer goods sector (effective tax rates paid).
- Many of the names with the sharpest moves higher today are recovering from a pre-election slump.
- Gainers include Sequential Brands Group (SQBG +11.7%), Iconix Brand Group (ICON +5.1%), Carter's (CRI +4.6%), Vera Bradley (VRA +4.6%), Wolverine World Wide (WWW +4%), Crocs (CROX +4.3%), Caleres (CAL +4.6%), Ralph Lauren (RL +3.4%), Fossil (FOSL +5%), Perry Ellis (PERY +3%), Deckers Outdoor (DECK +3.5%), Skechers (SKX +3.2%) and Coach (COH +3.1%).
- Kate Spade (KATE +5.9%) is also rallying, but has news of an activist investor on the prowl also factoring in.
- Previously: Kate Spade hears from activist firm (Nov. 14)
- Previously: Investors see upside with apparel store stocks (Nov. 14)
Thu, Nov. 10, 10:40 AM
- Ralph Lauren (RL +4.7%) reports revenue fell 8% on a constant currency basis in FQ2.
- Wholesale segment sales down 10.4% to $831M (-10.1% on a constant currency basis) driven by decline in North America, as shipments were strategically reduced as part of the Way Forward plan.
- Retail sales decreased 5.4% to $942M (-6.4% on a constant currency basis).
- Licensing revenue rose 1.6% to $48M (-0.2% on a constant currency basis).
- Adjusted gross margin rate improved 40 bps to 56.9%.
- Adjusted operating margin rate dropped 110 bps to 12.4%.
- FQ3 Guidance: Net revenues: down low-double digits to down low-teens; Operating margin rate: down ~200 bps to 225 bps; Tax rate: 29%.
- FY2017 Guidance: Net revenues: decrease at a low-double digit rate; Operating margin rate: ~10%; Tax rate: ~29%.
Thu, Nov. 10, 8:04 AM
Wed, Nov. 9, 5:30 PM
Fri, Oct. 14, 2:54 PM
- Piper Jaffray is out with the results of its annual Taking Stock With Teens Survey. The top brands listed by the 10K teens included in the survey are posted below.
- Top clothing brands: Nike (NYSE:NKE) 29%, American Eagle Outfitters (NYSE:AEO) 9%, Forever 21 5%, Ralph Lauren (NYSE:RL) 4%, Urban Outfitters (NASDAQ:URBN) 3%.
- Top handbag brands: Michael Kors (NYSE:KORS) 34%, Kate Spade (NYSE:KATE) 19%, Coach (NYSE:COH) 10%, Louis Vuitton (OTCPK:LVMHF) 5%, Longchamp Vera Bradley (NASDAQ:VRA) 3%.
- Top footwear brands: Nike 51%, Vans (NYSE:VFC) 9%, Converse 7%, Adidas (OTCQX:ADDYY) 6%, Steven Madden (NASDAQ:SHOO) 2%.
- Top restaurant chains: Starbucks (NASDAQ:SBUX) 14%, Chipotle (NYSE:CMG) 11%, Chick-fil-A 10%, Taco Bell (NYSE:YUM) 3%, Panera Bread (NASDAQ:PNRA) 3%, McDonald's (NYSE:MCD) 3%, Olive Garden (NYSE:DRI) 3%.
- Nothing earth-shattering in the tech results, dominating teen mindspace are Snapchat (Private:CHAT), YouTube, Instagram and Netflix (NASDAQ:NFLX).
Mon, Oct. 10, 10:35 AM
Fri, Oct. 7, 11:14 AM
- If things aren't quite as grim for apparel stores than some feared, it makes sense that clothing manufacturers could benefit.
- Following a better-than-anticipated sales report from Gap, and a big Goldman Sachs endorsement of Ralph Lauren (RL +2.7%), notable movers in the apparel sector on a down market day include Deckers Outdoor (DECK +1.7%), Columbia Sportswear (COLM +2.7%), PVH Corp (PVH +2.1%), Wolverine Worldwide (WWW +1%), Xcel Brands (OTCPK:XCEL), Oxford Industries (OXM +0.8%), and G-III Apparel (GIII +1.5%).
- Today's decent jobs report could also be a factor in the sector move.
- Previously: Rally time for Gap and apparel store peers (Oct. 7)
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.