Ralph Lauren First Realized Same Store Sales Growth

For the first time in nearly 15 quarters, the same store sales growth has been achieved, and the expected EPS performance has stimulated the largest in North America.

Group Ralph Lauren Corp. (NYSE:RL)

Share prices rose more than 9% to $125.

According to the world clothing and shoe net, as of the three quarter of December 29th, Ralph Lauren group's sales in the same store recorded an increase of 4%, which has finally reached a turning point in the last quarter. It 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 of 19% in the Greater China market is still the best, while the market in the Americas and Europe has been improved.

Group chief executive officer Patrice Louvet said that the key holiday season is to improve the quality of sales and achieve the growth of Ping efficiency. It is believed that the strategy has been implemented successfully after the successful implementation of the pformation strategy.

Investment in construction, product, digital and global expansion will provide competitive advantages for companies in the increasingly turbulent global retail environment, together with the 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, the EPS 2.32 US dollar increased by about 14% compared with the 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, Zacks was expected to be $1 billion 670 million, Refinitiv was expected to be $1 billion 660 million, 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 the previously announced results of rival LVMH SE (MC.PA), such as the luxury group, such as Hon.

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.

According to Patrice Louvet, the number of limited series of London mobile Palace Palace is sold out and less than one sale is sold out, and two of them are 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 did not directly affect 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 whether it really stimulates marketing investment.

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.

The current fiscal year is expected to be $250 million, less than the previous $275 million.

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