Ralph Lauren expects 2-3% growth in revenues for 2020

The US premium lifestyle designer Ralph Lauren (RL) expects its net revenue to increase 2-3 % in the fiscal 2020. According to the company release the estimate is now at the lower range due to the unrest in Hong Kong.

Ralph Lauren said its net revenue increased to 1,7 billion dollars during the second quarter fiscal 2020 ending Septemberg 2019. In North America the revenue was nearly the same, 881 million dollars, while in Europe the revenue increased to 480 million dollars and in Asia to 255 million dollars. A year earlier the revenues were 464 million and 244 million dollars respectively.

The company has 1170 stores globally and the amount increased by average 50 stores globally during the period. The increase was mainly in Asia and in Europe.

The operating income increased by 11% to 233 million dollars and net income to 182 million dollars (170 million dollars).

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Berkshire Hathaway´s profit 16,5 billion dollars in Q3

The US holding company Berkshire Hathaway (BRK) announced its third quarter earnings release on Saturday. According to the release, the net earnings increased to 52,3 billion dollars from 29,4 billion dollars a year ago during the nine month period. During the quarter, the net earnings were 16,5 billion dollars compared to 18,5 billion dollars during the same period a year ago.

The Common Stock A earnings were 31,9 dollars compared to 17,9 dollars for the nine month period. The company said it invested for example in Occidental Petroleum Corporation 10 billion dollars in April and increased also investments in Pilot Flying.

Berkshire Hathaway is operating in the railroads and the Burlington Northern Santa Fe is one of the largest railroad systems in the US and Canadian provinces. Operating earnings from railroads increased to 2644 million dollars during the quarter compared to 2484 million dollars a year ago.

The big investment in Kraft (KHC) was also showing a good track after the reporting delays in the company. Kraft, with its food and beverage products, is valued 9,1 billion dollars in Berkshire´s portfolio. The company owns 26,6 % of the Kraft Heinz company.

Berkshire Hathaway´s biggest direct investments in the US companies include American Express with 17,9 billion dollars, Apple (AAPL) with 57 billion dollars, Bank of America (BAC) with 27,8 billion dollars, Coca-Cola with 21,8 billion dollars and Wells Fargo with 20,2 billion dollars. The investments represents 66 % of the 220 billion dollars fair value in the portfolio.

The fixed income securities in the portfolio included for example 3,8 billion dollars worth of US Treasury securities, 8 billion dollars of foreign governments securities, corporate bonds worth of 6,1 billion dollars and corporate bonds with non-investment grade of 462 million dollars.

According to the release information, U.S. government securities are rated AA+ or Aaa by the major rating agencies.

-Approximately 87% of all state, municipal and political subdivisions, foreign government securities and mortgage-backed securities were rated AA or higher. Non-investment grade securities represent securities rated below BBB- or Baa3. Foreign government securities include obligations issued or unconditionally guaranteed by national or provincial government entities, the company said.

During the nine month period the cash pile has grown in the company and now represents 75 billion dollars compared to 42 billion dollars a year ago.

The market cap of Berkshire Hathaway (BRK) company is 528 billion dollars.

Business Finance

Apple revenue 64 billion dollars – EPS 3,03 dollars Q4 2019 (updated)

The US tech company Apple (AAPL) published its fourth quarter earnings release today. According to the info, the company revenue increased 2 % to 64 billion dollars and earnings per share to 3,03 dollars (+4 %) compared a year ago.

-We concluded a groundbreaking fiscal 2019 with our highest Q4 revenue ever, fueled by accelerating growth from Services, Wearables and iPad,” said Tim Cook, Apple’s CEO.
-With customers and reviewers raving about the new generation of iPhones, today’s debut of new, noise-cancelling AirPods Pro, the hotly-anticipated arrival of Apple TV+ just two days away, and our best lineup of products and services ever, we’re very optimistic about what the holiday quarter has in store, he continued.
The service segment showed all time high revenue of 12,5 billion dollars and the international sales were about 60 % of groups total sales.
Apple said its iPhones sales were 33,3 billion dollars during the fourth quarter compared to 36,7 billion dollars in the previous year. 12 months iPhone sales were 142 billion dollars.
The sales of iPads were 4656 million dollars and annually 21,2 billion dollars. The sales of wearables like Apple Watch, were 6520 million dollars and annually 24,5 billion dollars. Services sector also increased to 12,5 billion dollars in the fourth quarter and the 12 month sales were 46,2 billion dollars.
Apple spent 4100 million dollars in R &D during the quarter and totally 16,2 billion dollars in a year.
The operating income for the quarter was 15,6 billion dollars and for the whole year 63,9 billion dollars. Net income was 13,6 billion dollars.
Apple is estimating that during the first quarter of fiscal 2020, the revenue could be between 85,5 – 89,5 billion dollars and gross margin between 37,5 – 38,5 %.
Business Finance Tech

Uber revenue + 14 % – loss widens to 5,4 billion

The ride-hailing company Uber (UBER) reported its second quarter figures, ending June 30.  According to the company info, the revenue rose 14 % to 3,1 billion dollars, while the loss increased to 5,4 billion dollars from 739 million loss a year earlier. Diluted net loss was 4,72 dollars per share, while it was -2,01 dollars a year ago.

According to Uber, the operating loss includes for example the driver compensation of nearly 300 million dollars related to the IPO process.

The ridesharing revenue rose 2 % to 2,3 billion dollars during the quarter and the Uber Eats revenue rose 72 % to 595 million dollars.

-Our platform strategy continues to deliver strong results, with Trips up 35% and Gross Bookings up 37% in constant currency, compared to the second quarter of last year,” said Dara Khosrowshahi, CEO, in the press release.

-In July, the Uber platform reached over 100 million Monthly Active Platform Consumers for the first time, as we become a more and more integral part of everyday life in cities around the world, the CEO said.






















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Ralph Lauren Q1 revenue + 3% to 1,4 billion dollars

The US premium lifestyle company Ralph Lauren Corporation (NYSE:RL) reported earnings per diluted share of $1.47 for the first quarter of Fiscal 2020 and revenue increase 3 % to 1,4 billion dollars.

-Our Company continues to evolve with the world around us while staying true to our values and creating inspiring style that endures, said Ralph Lauren, Executive Chairman and Chief Creative Officer.

-We delivered first quarter results in line with our overall expectations, with better than expected operating margin and double-digit EPS growth, said Patrice Louvet, President and Chief Executive Officer.

According to him, the performance of Ralph Lauren was driven by strong continued momentum in the company´s international markets and expense discipline across the organization.

Mainland China was one of the fastest growing markets, nearly 30 % revenue growth the company said. In Europe the growth was 7 % and in Asia 8%.

In the first quarter of Fiscal 2020, revenue increased by 3% to $1.4 billion on a reported basis and was up 5% in constant currency, driven by positive results across regions. Foreign currency negatively impacted revenue growth by approximately 220 basis points in the first quarter.

Revenue performance for the Company’s reportable segments in the first quarter compared to the prior year period was as follows:

Gross profit for the first quarter of Fiscal 2020 was $921 million and gross margin was 64.4%, the company said.

Gross margin of Ralph Lauren benefited from favourable product, geographic, and channel mix, partly offset by increased promotional activity to keep inventories current and healthy.

Operating income for the first quarter of Fiscal 2020 was $143 million on a reported basis, including restructuring-related and other charges of $31 million, and operating margin was 10.0%.

– For Fiscal 2020, the Company continues to expect net revenues to increase 2% to 3%. Foreign currency is expected to negatively impact revenue growth by 90 to 100 basis points in Fiscal 2020, the company said in the press release.

– Operating margin for the second quarter of Fiscal 2020 is expected to be up 40 to 60 basis points in constant currency. Foreign currency is expected to negatively impact operating margin by about 20 basis points in the second quarter, Ralph Lauren said.

The Company continues to plan capital expenditures of approximately $300 million for Fiscal 2020.

Business Finance

Tesla´s Q2 deliveries 95 356 – on track with China factory & Model Y

The US electric car manufacturer Tesla (TSLA) announced its second quarter results, which show that the company in on track with the Shanghai Gigafactory plant and with the new model, Model Y. It means the new factory would be ready by the end of this year and the new model by the fall 2020.

The company said its Q2 deliveries were 95 356 vehicles and they reach a record production of 87 048 vehicles. During the period Model 3 deliveries were 77 634 vehicles and the average selling price (ASP) was around 50.000 dollars. Tesla also said it expects its weekly production reach 10.000 by the end of the year. The total annual production expectation remained at 360.000- 400.000 vehicles.

The free cash flow was 614 million dollars. The car revenue was 5,3 billion dollars compared to 3,7 billion dollars in the previous quarter. The loss of car operations was 167 million dollars compared to 521 million dollars in the previous quarter and 621 million dollars a year earlier. The CEO Elon Musk said in the conference call that he expects the company to turn profitable during the rest of the year.

Business Finance

Ralph Lauren: China the biggest growth market

The US premium lifestyle products company Ralph Lauren (RL) said yesterday that the China market is the company’s biggest growth market. According to the company filings operating income of the fourth quarter fiscal 2019 was 28 million dollars and operating margin was 1,9 %.

In the North American markets the operating income was 109 million dollars and the margin 15,9 %. In Europe the operating income was 98 million dollars and in Asia 38 million dollars. The operating margins were 23,7 % and 14,3 %.

Ralph Lauren said that the Asia revenue with currency growth was up over 30 % in Mainland China and that China is the fastest growing market for the company.

The whole fiscal 2019 net revenues were 6313 million dollars, up from 6182 million dollars year ago. Operating income was 561 million dollars compared to 498 million dollars year ago. The earnings per share was 5,27 dollars (1,97 dollars).

For the first quarter fiscal 2020 guidance net revenue is expected to be 3-5 % and operating margins to show 30-50 basis points increase. For the whole fiscal 2020 net revenue is expected to increase 2-3 % and operating margin 40-60 basis points.

The Group has over 501 global brand stores related to brands Ralph Lauren, Polo Factory and Club Monaco and the company said it is planning to open new stores in Asia and in Europe during the next fiscal year.

Company share price was trading today up 1,52 % to 113,89 dollars in New York. The  market cap of Ralph Lauren is 8,9 billion dollars











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