Ralph Lauren Corporation ($RL) Stock | Shares Tumble On Weak Earnings And Guidance Numbers


Ralph Lauren Corporation (NYSE: RL)



Ralph Lauren Corporation (RL), an upscale clothing company yesterday reported third quarter fiscal 2016 results. Ralph Lauren reported earnings of $2.27 per share which beat analyst expectations of $2.15. Ralph Lauren reported that revenues fell 4% to $1.9 billion which fell short of analyst expectations of $2.9 billion. Ralph Lauren also lowered their guidance numbers for 2016 and are now expecting revenues to drop 3% down from previous projections of breaking even.  


Ralph Lauren Corporation CEO’s Comments

“I am excited to be part of Ralph Lauren,” said Stefan Larsson, President and Chief Executive Officer. “While we are disappointed with the current business results, I was brought on board as CEO to institute change that will drive improved performance and strengthen Ralph Lauren’s position among the top luxury companies in the world. I am finalizing an extensive assessment into all aspects of the Company and working with my team to build a comprehensive strategic and financial plan to win. There is a lot of work to be done, but I am confident we will succeed.”  Business Wire


RL Technical Analysis

RL Chart

RL gapped down in price yesterday to $103.30, down from the prior day’s close of $115.56, which is a 11% decrease in price. Taking a look at the daily chart we can see that the last time RL traded below this price level was on January 19th when it traded at $101.38. Taking a closer look at the daily chart we can see that RL has been in an overall decline dating back to November 6th when it traded at $137.24. RL has a float of 58.22 million shares and is trading over 7.5 times the normal daily trading volume. RL reached pre market lows of $100.75, but bounced back $2.55, or equivalent to 3%. For trading purposes, my entry point short would have been $103 looking for a move down to $100. My stop loss would have been $103.5, fearing anything above that and the stock would start to fill in the gap down.


Company Profile

Ralph Lauren Corporation designs, markets, and distributes lifestyle products worldwide. The company operates in three segments: Wholesale, Retail, and Licensing. It offers apparel, including a range of men’s, women’s, and children’s clothing; accessories, which comprise footwear, eyewear, watches, fine jewelry, hats, belts, and leather goods, such as handbags and luggage; home products consisting of bedding and bath products, furniture, fabrics and wallpapers, lightings, paints, tabletops, and giftware; and fragrances. The company sells apparel and accessories under the Ralph Lauren Women’s Collection, Purple Label, Black Label, Polo Ralph Lauren, Polo Sport, Double RL, RLX Ralph Lauren, Lauren Ralph Lauren, Ralph by Ralph Lauren, Polo and RLX Golf, Ralph Lauren Childrenswear, Denim & Supply Ralph Lauren, Chaps, Club Monaco, American Living, and other brand names; women’s fragrances under the Safari, Ralph Lauren Blue, Lauren, Romance, Midnight Romance, RALPH collection, and Big Pony collection brand names; and men’s fragrances under the Safari, Polo Sport, Polo Green, Polo Blue, Polo Blue Sport, Purple Label, Polo Black, Double Black, Big Pony collection, Polo Red collection, and Polo Supreme Oud brand names. Ralph Lauren Corporation sells its products to department stores, specialty stores, and golf and pro shops, as well as through its retail stores, concession-based shop-within-shops, and its e-commerce sites. The company also sells its apparel, home, and other products through licensing alliances. As of March 28, 2015, it operated 466 directly-operated freestanding stores, 536 concession-based shop-within-shops, and 10 e-commerce Websites. The company was founded in 1967 and is based in New York, New York.  Yahoo Finance