uploads/2016/12/rl-pm.png

Ralph Lauren Declares a Dividend

By

Updated

Ralph Lauren declared a dividend

Ralph Lauren (RL) has declared a regular quarterly dividend of $0.50 per share on its common stock. The dividend will be paid on January 13, 2017, to shareholders of record at the close of business on December 30, 2016.

Article continues below advertisement

Price movement

Ralph Lauren fell 1.9% to close at ~$101.8 per share on December 14, 2016. The stock’s weekly, monthly, and YTD (year-to-date) price movements were -6.6%, -8.8%, and -7.3%, respectively, on the same day.

RL is now trading 6.7% below its 20-day moving average, 1.9% below its 50-day moving average, 4.0% above its 200-day moving average. It has a market cap of $8.4 billion

Related ETF and peers

The iShares Russell Mid-Cap Value ETF (IWS) invests 0.16% of its holdings in Ralph Lauren. The YTD price movement of IWS was 20.1% on December 14.

The market caps of Ralph Lauren’s competitors are as follows:

  • VF Corporation (VFC): $22.9 billion
  • HanesBrands (HBI): $8.5 billion
  • PVH Corporation (PVH): $8.2 billion
Article continues below advertisement

Ralph Lauren’s performance in fiscal 2Q17

Ralph Lauren (RL) reported fiscal 2Q17 net revenues of ~$1.8 billion, a fall of 7.6% YoY (year-over-year), as compared to net sales of ~$2.0 billion in fiscal 2Q16. The company’s gross profit margin and operating margin narrowed YoY by 410 basis points and 750 basis points, respectively, in fiscal 2Q17.

Ralph Lauren’s net income and EPS (earnings per share) fell to $45.0 million and $0.55, respectively, in fiscal 2Q17, as compared to $160.0 million and $1.86, respectively, in fiscal 2Q16. The company reported adjusted EPS of $1.90 in fiscal 2Q17, a YoY fall of 10.8%. Ralph Lauren’s cash and cash equivalents fell 4.8%, and its inventories rose 4.3% in fiscal 2Q17 compared to fiscal 4Q16.

Projections

Ralph Lauren (RL) has made the following projections for fiscal 3Q17:

  • consolidated net revenues to fall to low double digits to low teens
  • operating margin to fall ~2.0%–2.25% compared to fiscal 3Q16

The company has made the following projections for fiscal 2017:

  • consolidated net revenues to fall at a low double-digit rate, including a proactive pullback in inventory receipts, store closures, pricing harmonization, and sale initiatives
  • operating margin of ~10%

Now we’ll look at General Mills (GIS).

Advertisement

More From Market Realist