Ralph Lauren Corporation - An Iconic Brand On Sale
William Koldus, CFA, CAIA • 11 Comments
William Koldus, CFA, CAIA • 11 Comments
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
Nov. 23, 2015, 12:29 PM
- High-end global retail stocks are on the move as some analysts see the sector as oversold.
- A positive step forward for trade talks between China and the U.S. may also be contributing to the mini-rally.
- Gainers: Ralph Lauren (RL +1.8%), Guess (GES +3.3%), Coach (COH +2%), Michael Kors (KORS +1.8%), Vera Bradley (VRA +1.6%), Kate Spade (KATE +2.6%), PVH Corp (PVH +1.6%).
Nov. 5, 2015, 9:38 AM
- Ralph Lauren (RL +13.9%) reports revenue rose 4% on a constant currency basis in FQ2.
- Retail sales fell 0.9% to $996M (+5.1% on a constant currency basis).
- Wholesale segment sales dropped 1.8% to $927M (+2.6% on a constant currency basis).
- Licensing revenue increased 5.1% to $47M (+6.7% on a constant currency basis).
- Gross margin rate declined 30 bps to 56.5%.
- Operating expenses rate +50 bps to 43% due to incremental investments in infrastructure.
- Operating margin rate slipped 90 bps to 13.5%.
- FQ3 Guidance: Net revenues: +0% to 2%; Operating margin: -200 bps to -250 bps; Tax rate: 31%.
- FY2016 Guidance: Net revenues: ~flat (+3% - +5% on a constant currency basis) ; Operating margin: -180 bps to -230 bps; Tax rate: 30%.
Nov. 5, 2015, 9:10 AM| Nov. 5, 2015, 9:10 AM | 32 Comments
Oct. 8, 2015, 10:20 AM
- The apparel sector is out-gaining market averages as sentiment swings positive. There's been some analysis suggesting that apparel sellers will benefit from the Trans-Pacific Partnership on the cost side. Lower cotton and oil prices are also working in the favor of apparel companies, although hedging against the strong U.S. dollar is an ongoing risk.
- On the manufacturing side: G-III Apparel (NASDAQ:GIII) +2.6%, Columbia Sportswear (NASDAQ:COLM) +2.1%, Michael Kors (NYSE:KORS) +1.8%, PVH Corp. (NYSE:PVH) +1.6%, Ralph Lauren (NYSE:RL) +1.4%.
- On the chain store side: Cato (NYSE:CATO) +5.1%, Ascena Retail (NASDAQ:ASNA) +3.4%, American Eagle Outfitters (NYSE:AEO) +3.4%, Abercrombie & Fitch (NYSE:ANF) +3.1%, Francesca's Holdings (NASDAQ:FRAN) +2.6%, L Brands (NYSE:LB) +2.1%.
Sep. 30, 2015, 9:13 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
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