Ralph Lauren Corporation - An Iconic Brand On Sale
William Koldus, CFA, CAIA • 11 Comments
William Koldus, CFA, CAIA • 11 Comments
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, 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.
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, 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)
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. 4, 12:49 PM
- Ralph Lauren (RL -17.9%) CEO Stefan Larrson says the company is going through a review to identify growth opportunities.
- The process could lead to a strategic decision to focus on fewer brands and improve inventory management.
- Ralph Lauren's key department store selling channel in the U.S. has been a weak spot in recent quarters.
- Shares of Ralph Lauren are at their lowest level since late in 2010.
- Previously: Polo Ralph Lauren beats by $0.14, misses on revenue (Feb. 04 2016)
- Previously: Ralph Lauren -8.7% post FQ3 results (Feb. 04 2016)
Thu, Feb. 4, 12:48 PM
Thu, Feb. 4, 9:19 AM
- Gainers: VHC +89%. GLUU +21%. OCLS +18%. WFT +12%. ATNY +11%. SEDG +11%. PETX +10%. SVA +9%. ING +9%. TTWO +8%. SBH +8%. GRUB +7%. VALE +7%. HMY +7%. CDNS +6%. CDE +6%. SBGL +6%. GSH +5%. AUY +5%. VIAB +5%. RIO 5%.
- Losers: PPP -16%. KSS -15%. GPRO -15%. IMPV -13%. CS -13%. PACB -13%. RL -9%. AZN -7%.
Thu, Feb. 4, 9:14 AM
- Ralph Lauren (NYSE:RL) reports revenue fell 1% on a constant currency basis in FQ3.
- Wholesale segment sales declined 6% to $786M (-3.1% on a constant currency basis).
- Retail sales slipped 3.1% to $1.11B (+0.5% on a constant currency basis).
- Licensing revenue down 0.4% to $47M (+0.1% on a constant currency basis).
- Gross margin rate decreased 20 bps to 56.8%.
- Operating expenses rate grew 160 bps to 43.1% due to fixed expense deleverage and incremental investments in infrastructure.
- Operating margin rate dropped 180 bps to 13.7%.
- FQ4 Guidance: Net revenues: flat to -2%; Operating margin: -400 bps to -450 bps; Tax rate: 32%.
- FY2016 Guidance: Net revenues: -3% (+1% on a constant currency basis) ; Operating margin: -290 bps to -320 bps; Tax rate: 28%.
- RL -8.72% premarket.
Wed, Jan. 20, 10:06 AM
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