For The First Time In The 15 Quarter, The Same Store Sales Growth Increased By More Than 5% Before Ralph Lauren.

For the first time in nearly 15 quarters, the same store sales growth has been achieved for the first time, and the expected EPS performance has stimulated the Ralph Lauren Corp. (NYSE:RL) Ralph Lauren, the largest luxury goods group in North America, to rise by more than 9% to $125.

As of the three quarter of December 29th, Ralph Lauren group's same store sales recorded an increase of 4%, which finally reached a turning point in the previous quarter, and this performance also surpassed the 2% increase expected by Consensus Metrix.

A rare same store sales growth spurred the US group's share price to rise more than 12%, but it closed 124.16 dollars a day, or narrowed to 8.39%.

The Asia Pacific market continued to take the lead. In the three quarter, the same store sales recorded an increase of 4%, but it was lower than the two quarter's 6%, which is far less than the 6.2% increase expected by Consensus Metrix. The sales rate of the fixed exchange rate in the Great China market is still the best, while the market in the Americas and Europe has improved.

Patrice Louvet, group chief executive, said that the key holiday season's quality of sales increased and the growth of flat efficiency was realized. It was believed that after the successful implementation of the pformation strategy, the correct investment in brand building, product, digital and global expansion will provide the company with competitive advantages in the increasingly turbulent global retail environment, together with its balance sheet.

In the three quarter, Ralph Lauren group lost profits from the deficit to $120 million or net income per share of $1.48, a net loss of 81 million 800 thousand US dollars or -1.00 US dollars per share in the same period last year.

After adjustment, EPS2.32 US dollars increased by about 14% compared with 2.03 US dollars in the same period last year, which is better than Zacks's expected US $2.15.

Quarterly revenue increased 5.1% to 1 billion 725 million 800 thousand dollars, Zacks was expected to be 1 billion 670 million dollars, Refinitiv was expected to be 1 billion 660 million dollars, and 1 billion 641 million 800 thousand US dollars in the same period last year.

Fixed exchange rate increased 6.3% in the three quarter.

In response to the millennial generation, the group's marketing expenses rose by 18% in the three quarter, similar to that of the luxury group such as LVMH SE (MC.PA) Lu Wei Ming Xuan, which had previously announced its results.

US companies said that DTC channel efficiency increased by 9%.

American companies also said they would continue to work with social media and KOL to launch limited edition products.

Patrice Louvet said that the limited series of co operation London's wave brand Palace was sold out on less than one sale, and two out of three were new buyers.

In the three quarter, the group's North American online sales increased by 21%, which is also better than the growth of 20% of e-commerce channels.

Jane Hali, an analyst at Jane Hali & Associates, a boutique investment bank, said that although social and KOL strategies had no direct impact on sales, they all reached the purpose of speculation.

He said that even though the retailing industry has good products, it has no proper KOL and social media influence, and is still broke.

Tang Xiaotang, analyst at No Agency, said that we must face up to the impact of KOL and social media, or the stimulation of marketing investment that really plays a role.

He said that the expansion of luxury goods industry from the expansion of the physical store to the virtual world, the last quarter of 2018, the industry's strong performance is difficult to distinguish real and illusory, and this may be a huge signal bubble burst.

He believes this investment stimulus is not sustainable and leads the agency to maintain a neutral negative outlook for the industry.

In the three quarter, the gross profit margin of Ralph Lauren group was 61.4%. After adjusting 61.6%, it improved by 90 basis points by year. The operating profit margin was 11.2%. After adjustment, it improved 70 base points to 13.9%, of which the North American market increased by 20 basis points, while the European and Asian Pacific markets decreased by 40 and 30 basis points respectively.

The group is now expecting a slight increase in fixed exchange rate and an increase in operating margin from the previous 40-60 basis points to 60 basis points, but is expected to decline in the fourth quarter due to reduced discount sales, while pushing up the current season's operating profit margin by 90 basis points.

It is estimated that capital expenditure will be $250 million in the current fiscal year, less than the previous US $275 million.