Cangnan County Qimeng Clothing Co.,Ltd

ralph lauren: it\'s going to be a rough ride

by:QiMeng     2019-09-01
Ralph Lauren (RL -Get Report)
Did you ride again?
Back in December, I thought Ralph Lauren was out of date.
I say investors should stay away from stocks until the company is able to produce some top stocksline growth.
Shares fell nearly 12% this year. On Feb.
Ralph Lauren reports third.
Fiscal 2017 (ending March)earnings of $1.
$86 per share, $0.
22 better than consensus estimates.
Revenue fell 12% year-on-year to $1. 71 billion.
Sales fell below expectations, driving revenue growth.
Gross margin 58.
2% is slightly better than forecast.
Ralph Lauren was able to balance its fixed costs and generate £ 12.
Operating profit margin of 8%, only 90 basis points lower than the same period last year.
As a result, the \"road ahead\" plan may work.
In last June, Ralph Lauren announced plans for the future.
The company supports 12 brands, but only three. -
Ralph Lauren, polo and Lauren-
Drive any growth.
Ralph Lauren\'s \"classic style\" drives both business and non-
Core styles simply collect money in stock.
Incredibly, the company lacks a centralized inventory and optimization system.
This leads to excess production, excess inventory and non-
Stop discount
The company is now developing a demand-
Supply chain drive.
At present, it takes 15 months for a product to go from design to revenue.
Too long.
Management has vowed to cut the supply chain to nine months in eight months.
Test the pipeline.
The company is also getting rid of layers of management and closing stores without unprofitable.
Eventually, RL thinks it can save up to $0. 445 billion.
However, in the third
CEO Stefan Larsson announced on a conference call that he would leave the company.
Mr. Larsson will remain in office until he finds a replacement, but investors like Mr. Larsson\'s future plan, which some think is being rolled out because it is too aggressive.
Uncertainty surrounding future plans will certainly have an impact on stocks.
In December, management was able to lower the discount level in retail and wholesale channels as it reduced its inventory by 23% to better meet demand.
The company reduced the number of SKUs (
Inventory Unit)
For spring, which is 2017 to 20%, it believes it can reach 9-
By the end of the fiscal year, the month\'s lead time will reach 90% of the target by the end of next year.
In addition, Ralph Lauren is expected to receive $0. 18 billion
The annual savings associated with these initiatives amounted to $0. 22 billion.
The company plans to charge about $0. 4 billion for restructuring and $0. 15 billion in inventory related to future plans.
Oh, if that\'s not enough, the management says fourth.
Quarterly revenue will fall in the medium term
In his teens, about $1. 5 billion --
It seems to me very disappointing.
Analysts now believe total revenue for fiscal 2017 will reach $6. 65 billion, 10.
2% lower, earning about $5 per share.
60, under $6.
35 years old a year ago
After the fourth timeQuarterly Report (
Scheduled for May 11)
Investors will start to focus on fiscal 2018, and there is not much to focus on.
Analysts estimate sales will decline. 7% to $6.
Earnings per share fell to $7 billion. 20.
At this rate, investors will have to wait a whole year before Ralph Lauren can release any top productline growth.
Nevertheless, if the management team can bring investors the hope that fiscal year 2019 will be a growth year, as the market usually starts to present 6-
Nine months ahead.
Now, I will wait for more information on the side.
If Ralph Lauren can regain investor confidence and achieve good results in the fourth quarter, the stock will rebound from a high of $70 to $90.
But it could be a harder journey.
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