Shares of Ralph Lauren Corp (NYSE:RL) are down big this morning after the company reported their third quarter results. Revenue for the quarter fell 4% and the company was also forced to cut their yearly outlook.
The company reported that total sales at their stores fell 7% which was much worse than Wall Street had been anticipating. The Street was only forecasting a 2.7% decline. Net income also fell 40% to $131 million ($1.54 per share) for the quarter. However, EPS excluding items came in at $2.27 per share which beat Wall Street’s expectations of $2.13 per share.
Ralph Lauren Corp (NYSE:RL) also said that they expect revenue to fall by another 3 percent for the year, updating a guidance which originally forecasted sales to remain steady. The stock is down 15.96% or $18.44 following the news, hitting $97.12 per share. Approximately 303,840 shares traded hands. RL shares have declined 12.69% since June 30, 2015 and are currently downtrending. It has underperformed the S&P500 by 5.39%.
From a total of 10 analysts covering Polo Ralph Lauren Corporation (NYSE:RL) stock, 5 rate it a “Buy”, 0 a “Sell”, and 5 a “Hold”. This means that 50% of the ratings are positive. The highest target price is $160 while the lowest target price is $115. The mean of all analyst targets is $135.50 which is 39.52% above today’s ($97.12) stock price. Polo Ralph Lauren Corporation was the topic of 20 analyst reports since August 6, 2015 according to the firm StockzIntelligence Inc. Standpoint Research initiated shares on January 20 with a “Buy” rating. Deutsche Bank maintained shares with a”Hold” rating and a $136 target share price in their report from an August 4. Telsey Advisory Group maintained RL stock in a recent report from November 6 with a “Outperform” rating. Finally, Barclays Capital downgraded the stock to a “Equal-Weight” rating in a report they issued on an October 29.
The institutional sentiment increased to 0.94 in Q2 2015. It’s up 0.01, from 0.93 in 2015Q2. The ratio is positive, as 48 funds sold all their Ralph Lauren Corp shares they owned while 133 reduced their positions. 42 funds bought stakes while 129 increased their total positions. Institutions now own 51.04 million shares which is 11.23% less than the previous share count of 57.49 million in 2015Q2.
Caerus Global Investors Llc holds 30.18% of its total portfolio in Ralph Lauren Corp, equating to 9,172 shares. Park Presidio Capital Llc owns 289,600 shares representing 8.06% of their total US portfolio. Moreover, Hs Management Partners Llc has 4.88% of their total portfolio invested in the company, equating to 1.03 million shares. The New York-based Euclidean Technologies Management Llc has a total of 2.12% of their portfolio invested in the stock. Argus Investors' Counsel Inc., a Connecticut-based fund reported 38,150 shares owned.
Since March 9, 2015, the stock had 0 insider buys, and 2 selling transactions for a total of $11.38 million in net activity. Lauren Ralph sold 50,000 shares worth $5.57 million. Kosh Mitchell Alan sold 6,700 shares worth $918,436. Lauren David R. sold 14,010 shares worth $1.83M. Aronson Arnold H sold 2,000 shares worth $260,000. The insider Murphy Steven P sold 2,007 shares worth $256,816.
Ralph Lauren Corporation is engaged in the design, marketing and distribution of lifestyle products, including apparel, accessories, home furnishings and other licensed product categories. The company has a market cap of $8.22 billion. The Firm operates in three divisions: Wholesale, Retail and Licensing. It has 15.13 P/E ratio. Wholesale business, representing approximately 46% of net revenues as of fiscal year ended March 28, 2015 , consists of sales made to department stores and specialty stores around the world.