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.

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Stocks tumbled in NY – hit by trade war

The financial markets tumbled today globally as a response to the tightening trade war between the US and China trade. The global economy growth was the main concern in the markets while the Chinese currency, yuan decreased to its lowest levels in decade, to around 7 per dollar. Last week the US President Donald Trump informed about the new tariffs in the China trade.

Dow Jones index closed down 2,9 % to 25 717 points, the S&P 500 index closed down 2,99 % to 2844 points and the tech-Nasdaq index down 3,47 % to 7726 points. The gold and Japanese yen increased.

Apple (AAPL) closed down 5,23 % to 193,34 dollars, ride-hailing company Uber (UBER)closed down 3,34 % to 39,05 dollars, IBM (IBM) closed down 4,41 % to 140,76 dollars, Microsoft (MSFT) closed down 3,43 % to 132,21 dollars and Walmart down 3,27 % 105,82 dollars. Luxury company Ralph Lauren (RL) closed also down 3,19 % to 95,73 dollars. The electric car manufacturer Tesla (TSLA) closed down 2,57 % to 228,32 dollars.

According to Bloomberg market analyst, the trade war could hit US jobs as early as the next two months. This would also increase the global pressures for more rate cuts by the central banks in Europe and in the US. Last week the Fed lowered its fed funds by 25 basis points for the first time since the financial crisis.

In Europe the stocks were also down. In London the FTSE 100 index closed down 2,47 % to 7223 points, in Germany the DAX-index closed down 1,80% to 11 658 points and in France the CAC 40 -index closed down 2,19 % to 5241 points.

In Asia the Hang Seng closed down 2,85 % to 26151 points in Hong Kong and the Nikkei 225 index closed down 1,74 % to 20720 points.

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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.

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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.

 

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