“We remain encouraged by progress being made to improve the health of the brand/business and the strong first half of FY19, but continue to believe RL has work ahead to improve its digital strategy, update brand perception, and rationalize distribution, including quality of sales initiatives globally and further off-price pullback ahead in North America. We believe today’s share price reflects much of the progress made to-date and remain NEUTRAL. In 2Q, revenue rose 1.6% to $1.69bn (vs. our -0.4% estimate), with solid improvement in comp trends QoQ in NA and Europe and strength in Asia, led by China. Total RL comps were flat in CC, improving from a 3% decline in 1Q. NA (+1% rev growth vs. our -3%) comps rose 1% in CC, with improvement in digital (+9% comp, from -2% in 1Q), reflecting traffic gains, and stores comp’d -1% (from -3% in 1Q), with a 3% AUR increase offsetting traffic declines.”,” the firm’s analyst commented.
Other research analysts have also recently issued research reports about the company. Zacks Investment Research upgraded Ralph Lauren from a hold rating to a buy rating and set a $146.00 price objective for the company in a research report on Friday, August 3rd. Deutsche Bank initiated coverage on Ralph Lauren in a research report on Monday, October 29th. They issued a buy rating and a $149.00 price objective for the company. Royal Bank of Canada set a $140.00 price objective on Ralph Lauren and gave the stock a hold rating in a research report on Tuesday, July 31st. Buckingham Research increased their price objective on Ralph Lauren from $138.00 to $140.00 and gave the stock a neutral rating in a research report on Wednesday, October 17th. Finally, Piper Jaffray Companies upgraded Ralph Lauren from an underweight rating to a neutral rating and set a $125.00 price objective for the company in a research report on Thursday, September 20th. Three analysts have rated the stock with a sell rating, ten have issued a hold rating and five have issued a buy rating to the stock. The stock has an average rating of Hold and an average target price of $137.38.
Ralph Lauren (NYSE:RL) last released its quarterly earnings data on Tuesday, November 6th. The textile maker reported $2.26 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $2.16 by $0.10. The firm had revenue of $1.69 billion during the quarter, compared to analysts’ expectations of $1.65 billion. Ralph Lauren had a return on equity of 16.19% and a net margin of 3.82%. Ralph Lauren’s revenue was up 1.6% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.99 earnings per share. Analysts anticipate that Ralph Lauren will post 6.78 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which was paid on Friday, October 12th. Stockholders of record on Friday, September 28th were given a $0.625 dividend. This represents a $2.50 dividend on an annualized basis and a dividend yield of 2.02%. The ex-dividend date was Thursday, September 27th. Ralph Lauren’s dividend payout ratio is currently 41.46%.
Hedge funds have recently made changes to their positions in the company. Point72 Hong Kong Ltd purchased a new position in shares of Ralph Lauren in the second quarter valued at $150,000. Financial Architects Inc increased its position in shares of Ralph Lauren by 498.6% in the second quarter. Financial Architects Inc now owns 1,251 shares of the textile maker’s stock valued at $158,000 after buying an additional 1,042 shares in the last quarter. Visionary Asset Management Inc. acquired a new stake in shares of Ralph Lauren during the second quarter valued at $203,000. Cadence Capital Management LLC acquired a new stake in shares of Ralph Lauren during the second quarter valued at $203,000. Finally, Lourd Capital LLC acquired a new stake in shares of Ralph Lauren during the third quarter valued at $205,000. Institutional investors and hedge funds own 69.95% of the company’s stock.
Ralph Lauren Company Profile
Ralph Lauren Corporation designs, markets, and distributes lifestyle products in North America, Europe, Asia, and internationally. It offers apparel, including a range of men's, women's, and children's clothing accessories, which comprise footwear, eyewear, watches, fashion and fine jewelry, hats, gloves, umbrellas, belts, and leather goods, such as handbags, luggage, small leather goods, and belts; home products consisting of bedding and bath products, furniture, fabrics and wallpapers, lightings, tabletops, floorcoverings, and giftware; and fragrances.
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