ralph lauren, macy\'s warn about soft economy
Ralph Lauren (RL. N)
And Macy\'s (M. N)
Both companies reported quarterly sales growth on Wednesday, but both said the economy was still grim and the drop in visitor spending was putting pressure.
Ralph Lauren, who offers rising prices and falling services to consumers of Monaco club and its brand of the same name, said that net income is expected to decline \"at a medium level\"single-
The percentage of figures in the second quarter was largely due to economic turmoil in Europe.
Ralph Lauren fell 1.
$ 1% to $151. 35.
In contrast, Macy\'s shares rose by 2.
$ 7% to $38.
01 better after the department store chain newspaper-than-
And raised profit expectations.
Ralph Lauren says European tourists have fallen and have been hit, with Europe being the biggest market after North America.
The sales of clothing merchants were further hurt by their stages
Stores run by local partners in China.
It plans to replace these in time with the company-
Run stores in better places and upgrade their brands at the fastest pace in the world
The luxury market is growing.
Chief Operating Officer Roger Farah said in a conference call with analysts that Chinese tourists accounted for less than 2% of Ralph Lauren\'s sales in Europe, while competitor sales reached 40%, make Ralph Lauren relatively low-key in China.
At the same time, European department stores are also more cautious in ordering.
Speaking of European retailers selling their goods, Farah said: \"We see the Skittles of our wholesale partners . \".
Ralph Lauren performed better in North America, where department stores were more eager to place orders: wholesale sales there doubled
Percentage of numbers.
By contrast, they are down at least 10% in Europe.
But Ralph Lauren\'s sales were hurt by the United States. S.
Department store chain J. C.
Penney Company (JCP. N)
Give up American Life brand this summer.
Meanwhile, Macy\'s won some business in the quarter from the decline in Penney\'s sales, and since canceling the use of coupons and most sales campaigns this winter, Penney has lost many customers.
Second place at Macy\'s
The department store\'s quarterly sales were lower than the company\'s own forecasts, in part because of reduced spending by foreign tourists and the disruption of its $0. 4 billion renovation of its Manhattan flagship store.
Analysts expect the same for Penny.
Store sales fell by 17.
According to Thomson Reuters, the second quarter of this year was 4%.
At Macy\'s, they attracted richer customers than their closest competitors, up 3% at Cole (KSS. N)they slipped 2. 7 percent.
The results of Cole\'s report on Thursday.
Macy\'s Chief Executive Terry Lundgren said in a statement: \"We are entering the autumn with optimism and are optimistic about our ability to grow sales and gain market share.
Net income from Ralph Lauren increased by 5.
$ 1% to $193.
4 million, or $2.
Earnings per share for the first quarter ended June 30 were $184.
1 million, or $1.
$90 a share a year ago.
Wall Street expects earnings per share to be $1. 78. Revenue rose 4. Between $ 4% and $1. 59 billion.
At Macy\'s, net income for the quarter ended July 28 was $0. 279 billion, or 67 cents per share, up from $0. 241 billion, or 55 cents per share, 64 cents per share a year ago, higher than analyst estimates.
Macy\'s has improved.
Earnings per share were 5 cents to $3. 30 to $3. 35.