Tech stocks up in Wall Street – RealReal +12 %

The tech stocks soared up in Tuesday trading in New York. Apple´s (AAPL) stock closed up 4,23 % to 208,97 dollars due to the tariffs delays in the US China trade negotiations. Also retail gained and for example Amazon (AMZN) closed up 2,21 % to 1824 dollars. The tariffs delay is expected to help the Christmas shopping as well.

The re-used luxury online shop RealReal gained over 12 % in trading. The company published its second quarterly figures ending June 30th. According to the press release the total revenue gained 51 % to 71 million dollars from a year earlier and the average order value was 452 dollars. The net loss was 26,8 million dollars compared to the loss of 17,6 million dollars a year ago. The company had the IPO in the beginning of July.

Tesla (TSLA) was also up, 2,62 % to 235 dollars and Ralph Lauren (RL) also up 1,61 % to 93,41 dollars. The retail company Macy´s was also up, 0,41 % to 19,36 dollars. The company is to publish its figures on Wednesday.

Dow Jones- index closed up 1,44 % to 26 279 points, the large S&P 500 -index closed up 1,48 % to 2926 points and tech-index Nasdaq closed 1,95 % to 8016 points. Semiconductor sector index closed up 2,95 % to 1489 points.

Business Finance

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

Ralph Lauren to source 100% sustainable materials by 2025

Ralph Lauren Corporation (RL) unveiled its renewed strategy on Global Citizenship & Sustainability today in New York. According to the new company sustainability strategy, Ralph Lauren will source 100 % sustainable materials by 2025, including cotton.

The strategy named “Design the Change”, is both a commitment and a journey to accelerate the Company’s work across citizenship and sustainability.

-When Ralph founded our Company more than 50 years ago, he did so with the conviction that whatever we create is meant to be worn, loved and passed on for generations,” says Patrice Louvet, CEO and President, Ralph Lauren Corporation.

Design the Change is focused on three areas where Ralph Lauren can create the greatest positive impact: Creating Timeless Style, Protecting the Environment, and Championing Better Lives. Its foundation is 16 ambitious goals that will guide the Company’s work across each of these areas.

Some of the company key performance indicators are:

  • Achieve 100% sustainably-sourced key materials – including cotton – by 2025
  • Train design, product development and merchant teams on sustainable, circular, inclusive and culturally-aware design annually by 2020
  • Set science-based greenhouse gas reduction targets by 2020 and 100% renewable energy targets by the end of 2019
  • Achieve gender parity with equal representation in leadership positions at the Vice President level and above by 2023
  • Increase female representation in factory management by 25% by 2025

The strategy also include the product actions like EarthPolo, the innovative fabric produced entirely from plastic bottles. One Polo is made from approximately 12 plastic bottles.

The sustainability strategy also integrate better gender balance in different positions in the company and a new campaign to close the leadership gap between  women and men.

Ralph Lauren (RL) shares were trading up 0,18 % to 113,86 dollars in New York today.

 

Business Finance Lifestyle

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

 

 

 

 

 

 

 

 

 

 

Business Lifestyle

Luxury goods sales increased after UK´ s Brexit

 

Luxury goods sales have showed positive trend after the UK´s Brexit. According to national statistic and Swiss Watch Industry the luxury watch export to the UK increased by over 13 % in July. The main reason has been the weak sterling. According to the industry leaders, Britain is now the fastest growing major market for Rolex watches.

Also the world largest luxury goods maker the French LVMH (MC:FP) Group showed sales above the analyst estimates during the summer. The stock price of this industry leader has increased by 9,4 % on year.

The US jewelry company Tiffany ( (TIF:US) reported second quarter profit above the market estimates. The Italian fashion company Prada (PRDSF:US)  announced increased investments in e-commerce for the year 2017, but the company also made statements that Prada will retrun to growth in sales and earnings next year.

The British SUV maker Aston Martin announced that it will be moving its business core also to consumer products like Hermes and trying to appeal also more female customers.

In general the Luxury goods and apparel industry will be moving more towards e-commerce globally and the consumers have also noticed the tax-free shopping centers in the global airports. The sales of luxury goods at the airports have also increased by nearly 30 %  according to Global Blue.

 

 

 

 

 

Business Lifestyle