Upscale retailer Ralph Lauren Corp RL.N reported a bigger-than-expected decline in holiday-quarter established store sales on Thursday, while Macy’s Inc M.N posted similar results in January, both blaming the warmer-than-usual quarter and a dearth of tourists.
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Despite beating third quarter earnings expectations, earnings fell to $131 million, or $.54 per share, from $215 million, or $2.41 per share.
Currently, the analyst consensus on Ralph Lauren Corp is Moderate Buy and the average price target is $150, representing a 29.8% upside.
Ralph Lauren shares have risen nearly 4 percent since the beginning of the year, while the Standard & Poor’s 500 index has fallen slightly more than 6 percent.
Ralph Lauren stock was up around 3 percent before market open.
Shares of Macy’s Inc, Target and J.C. Penney Co Inc were down more than 3 percent as investors raised concerns about the lingering effects of a weak holiday season.
During a conference call with analysts, Stefan Larsson, the company’s recently-appointed CEO, said Ralph Lauren will undertake a review of all aspects of the business.
Moving to the technical study, the share price is -17.36% distant from 50-Day MA of 108.84, -37.19% away from 52-week high of 143.20 and +1.94% away from one-year low of 88.24.
Shares of Ralph Lauren Corp (NYSE:RL) traded down 22.16% during mid-day trading on Thursday, reaching $89.95. Investors will need to be patient with the company as it clears out inventory and resets. Revenue for the quarter fell 4% and the company was also forced to cut their yearly outlook.
RL has been the subject of a number of other reports.
Since March 9, 2015, the stock had 0 insider buys, and 2 selling transactions for a total of $11.38 million in net activity. Kosh Mitchell Alan sold 6,700 shares worth $918,436. The firm has a market capitalization of $7.62 billion and a price-to-earnings ratio of 14.01.
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Ralph Lauren Corporation is engaged in the design, marketing and distribution of lifestyle products, including apparel, accessories, home furnishings and other licensed product categories.
