“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.”,” Guggenheim’s analyst wrote.
A number of other analysts have also issued reports on RL. Zacks Investment Research lowered Ralph Lauren from a buy rating to a hold rating in a research note on Tuesday, July 24th. Royal Bank of Canada set a $140.00 price objective on Ralph Lauren and gave the company a hold rating in a research note on Tuesday, July 31st. Credit Suisse Group lifted their price objective on Ralph Lauren from $153.00 to $156.00 and gave the company an outperform rating in a research note on Wednesday, August 1st. Bank of America lifted their price objective on Ralph Lauren from $113.00 to $117.00 and gave the company a sell rating in a research note on Wednesday, August 1st. Finally, Barclays lifted their price objective on Ralph Lauren from $114.00 to $118.00 and gave the company an underweight rating in a research note on Wednesday, August 1st. Three research analysts have rated the stock with a sell rating, ten have given a hold rating and five have given a buy rating to the stock. The stock presently has a consensus rating of Hold and an average price target of $137.38.
Ralph Lauren (NYSE:RL) last issued its quarterly earnings results on Tuesday, November 6th. The textile maker reported $2.26 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.16 by $0.10. Ralph Lauren had a return on equity of 16.19% and a net margin of 3.82%. The firm had revenue of $1.69 billion for the quarter, compared to analyst estimates of $1.65 billion. During the same period last year, the company earned $1.99 EPS. The firm’s quarterly revenue was up 1.6% on a year-over-year basis. As a group, research analysts forecast that Ralph Lauren will post 6.78 earnings per share for the current fiscal year.
The business also recently announced a quarterly dividend, which was paid on Friday, October 12th. Investors of record on Friday, September 28th were issued a dividend of $0.625 per share. The ex-dividend date of this dividend was Thursday, September 27th. This represents a $2.50 annualized dividend and a dividend yield of 2.02%. Ralph Lauren’s payout ratio is currently 41.46%.
Large investors have recently made changes to their positions in the stock. Schroder Investment Management Group raised its holdings in shares of Ralph Lauren by 95.4% during the 2nd quarter. Schroder Investment Management Group now owns 149,191 shares of the textile maker’s stock valued at $18,938,000 after buying an additional 72,837 shares during the period. Renaissance Technologies LLC raised its holdings in shares of Ralph Lauren by 46.7% during the 2nd quarter. Renaissance Technologies LLC now owns 2,864,503 shares of the textile maker’s stock valued at $360,125,000 after buying an additional 912,403 shares during the period. Her Majesty the Queen in Right of the Province of Alberta as represented by Alberta Investment Management Corp purchased a new stake in Ralph Lauren during the 2nd quarter worth approximately $6,035,000. Commerzbank Aktiengesellschaft FI increased its holdings in Ralph Lauren by 6.7% during the 2nd quarter. Commerzbank Aktiengesellschaft FI now owns 49,976 shares of the textile maker’s stock worth $6,283,000 after purchasing an additional 3,127 shares during the last quarter. Finally, Scout Investments Inc. purchased a new stake in Ralph Lauren during the 2nd quarter worth approximately $16,291,000. Institutional investors and hedge funds own 69.95% of the company’s stock.
About Ralph Lauren
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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