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Stock Market & Financial Investment News

News Breaks
May 9, 2014
12:59 EDTRL, COH, KORSRalph Lauren falls after same-store sales drop, guidance disappoints
Shares of luxury product and apparel maker Ralph Lauren (RL) are falling after the company reported that its fourth quarter comparable store sales fell 2%. The luxury goods maker also issued fiscal year 2015 earnings per share guidance that was below the consensus view at the midpoint. WHAT'S NEW: Ralph Lauren reported fourth quarter earnings per share of $1.68, which exceeded analysts expectation of $1.63. The luxury company reported fourth quarter revenues of $1.87B which also surpassed analysts expectations. Ralph Lauren experienced a decline of 2% in its consolidated comparable store sales and noted that it's reported basis comparable store sales were down 1% in constant currency during the quarter. The company attributed the decline to the cold weather and late start to spring in North America and the shift in the timing of Easter versus the prior year. In terms of guidance, Ralph Lauren said that it sees FY14 net revenue to be up 6%-8%. In the first quarter of fiscal FY15, the company said that it expects consolidated net revenues to increase by 3%-5%, led by retail segment growth. Executive vice chairman, Roger Farah, announced his retirement from Ralph Lauren at the end of May but noted that he will remain on the board of directors until the expiration of his term on the date of the company's annual stockholders meeting in August. WHAT'S NOTABLE: During the company's earnings conference call, management said that opportunities for growth are "tremendous" and its strategies are "clear." The company noted that it has planned an increase in advertising and marketing and announced its intention to begin a three-year project to upgrade its global e-commerce operating platform. The company said that investing in new capabilities will support accelerated revenue growth through upped productivity and improved conversion rates. ANALYST REACTION: Wells Fargo analysts Evren Kopelman and Connie Wang said that Ralph Lauren's FY15 guidance was "disappointing," but said that the firm's expectations for sales quickening over the next few years thanks to the Polo strategy is unchanged. The analysts added that if management could give clearer margin progression projections, the multiple on the shares could expand. The firm lowered its FY15 and FY16 estimates for Ralph Lauren, but still said that they foresee "significant" upside potential to the shares and feel that the current P/E multiple is very attractive for the growth that they anticipate. Wells Fargo is maintaining its Outperform rating on the stock. OTHERS TO WATCH: Competitors to Ralph Lauren include Coach (COH) and Michael Kors (KORS). PRICE ACTION: During afternoon trading, shares of Ralph Lauren fell $4.18 or 2.75%, to $147.81.
News For RL;COH;KORS From The Last 14 Days
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October 20, 2014
13:10 EDTKORSSteve Madden tumbles after providing preliminary Q3 results, FY14 outlook
Shares of shoe and accessory company Steve Madden (SHOO) are tumbling after the company announced preliminary third quarter results that were below analysts' consensus along with a reduction to its fiscal year 2014 outlook. WHAT'S NEW: Steve Madden announced that it is anticipating Q3 earnings per share to be approximately 61c-62c and net sales of $392M, below analysts' consensus estimates of 67c and $415.72M, respectively. The company noted that retail comparable store sales for the quarter are anticipated to be down 7.4%. Steve Madden also reduced its FY14 EPS outlook to $1.81-$1.86 from $2.00-$2.10, well below analysts' $2.02 consensus. The company lowered its net sales projection for the year, and now sees net sales up 1%-2% over fiscal year 2013 versus its previous net sales guidance for up 2%-4% over FY13. The new guidance factors in the recent acquisition of Dolce Vita and current expectations for remainder of the year. On August 14, Steve madden acquired Dolce Vita for $60.3M in cash and previously said the deal would be accretive to earnings in FY14 by 2c-3c and be "modestly accretive" in FY15. WHAT'S NOTABLE: Steve Madden's Chief Executive Officer Edward Rosenfeld said that the company's Q3 earnings were "disappointing" and were the result of weaker than expected retail segment performance. He believes that retail trends in the footwear space will continue to be difficult through the fourth quarter due to a lack of noteworthy fashion trends in the industry. The CEO said that the company's full-year guidance results from this pattern, along with a lowered reorder outlook in its wholesale segment. Rosenfeld is still confident, however, in the company's business model and believes that its acquisitions of Dolce Vita and its Mexican licensee will fuel the business forward over the long term. OTHERS TO WATCH: Competitors of Steve Madden include Michael Kors (KORS), Coach (COH), Kate Spade (KATE), and Vera Bradley. PRICE ACTION: During afternoon trading, shares of Steve Madden fell $2.62 or 8.2%, to $29.32. Over the last twelve months, the stock has fallen over 15%.
October 15, 2014
06:12 EDTRLNike's Converse sues rivals over 'copycat' design, NY Post reports
Converse, a unit of Nike (NKE), is suing rivals including Ralph Lauren (RL) and Tory Burch, alleging that shoemakers and retailers are copying its iconic design, the New York Post reports. Lawyers for Converse say "We welcome fair competition, but we do not believe companies have a right to copy the trademarked look." The lawsuit seeks unspecified damages and injunctions that would bar the production of the rival shoe models. Reference Link
October 14, 2014
05:48 EDTKORSMichael Kors initiated with a Hold at Stifel
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