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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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September 30, 2014
06:07 EDTKORSMichael Kors implied volatility of 27 at lower end of index mean range
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September 25, 2014
17:42 EDTCOHCoach executive chairman Lew Frankfort to retire
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September 23, 2014
08:40 EDTKORSMichael Kors attractive vs. peers, says BofA/Merrill
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September 16, 2014
07:15 EDTRLRalph Lauren management to meet with Deutsche Bank
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