Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Ralph Lauren Polos Grow Musty as Shut-ins Lounge in Athleisure

Published 2020-08-04, 12:24 p/m
Updated 2020-08-04, 12:26 p/m
© Reuters.

© Reuters.

By Christiana Sciaudone

Investing.com -- In times of athleisure, is there room for Ralph Lauren (NYSE:RL) Polo shirts? Second quarter earnings results say no.

Ralph Lauren shares dropped 7.4% after the apparel maker reported a 66% sales slump for the fiscal first quarter, with North America hit the hardest, seeing a 77% decline to $165 million. European sales dropped 67%, and Asia dropped 34%. 

Ralph Lauren has four buy ratings, seven holds and one sell, according to data compiled by Investing.com.

Despite the news that consumers are turning away from the country club style of Ralph Lauren, Needham analyst Rick Patel reiterated his buy rating on Monday, setting a price target of $90. Shares are trading under $65, which is the lowest price target of analysts surveyed by Briefing.com. The average price target is $84.85.

Patel said Ralph Lauren should post a loss per share of $3.38 for the fiscal second quarter. 

"We continue to expect our financial results for both the second quarter and full year fiscal 2021 to be significantly adversely impacted by the pandemic and prolonged demand recovery," the company said in a statement. 

Ralph Lauren said it's trying to "win over" a new generation of consumers, and noted that Home and Loungewear are "emerging as high potential, under-developed lifestyle categories." 

 

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.