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Ralph Lauren Corp. (NYSE:RL) Ralph Lauren group has fallen back again in the North American market in recent quarter, even if the annual promotion of the market has increased by 13%, it will not be able to pull the business back to a stable recovery track.

In the fourth quarter of 2019 fiscal year ending March 30th, the group's North American income dropped 6.3% to 708 million 400 thousand US dollars compared with the same period last year. The decline of 7% of the entity stores completely offset the 6% growth of e-commerce, resulting in an annual decrease of 4% in retail sales, and a 10% drop in wholesale income because of the unsalable sales and deliberately reduced discount sales strategy.

In recent years, Ralph Lauren Corp., Michael Kors and Coach have been trying to restore the high-end brand image and strive to get rid of the local mid-range department stores. At the same time, they are committed to strengthening investment in digital and social marketing to pursue millennial and Z generation consumers.

Capri Holdings Ltd. (NYSE:CPRI) and Tapestry Inc. (NYSE:TPR), which belong to the luxury group of Michael Kors and Coach respectively, have basically reversed their weakness. In contrast, the Ralph business in North America has increased only in the two or three quarter of fiscal 2019 over the past two years.

At the analysts' conference call, the group management admitted that in the fourth quarter, they focused on using fashion to attract young customers, but ignored core categories including cowboy products.

BlueFin Research analyst Rebecca Duval pointed out that regardless of the Ralph Lauren main line or Polo brand, the spring series used logo too much in design.

Instinet analyst Simeon Siegel said in the research report that Ralph Lauren Corp. implied that North American business has been at the edge of stability, but there is still no sign of stability from its performance.

Fourth quarter operating profit in North America also dropped by 15.2%, while Europe and Asia continued to grow.

Fixed exchange rate European income rose by 11% over the same period, while retail sales increased by 5% and 11% respectively compared with sales and wholesale revenues.

Asia also rose by 10%, of which China's growth rate was as high as 30%.

PatriceLouvet, chief executive officer and chief executive officer, told analysts that mainland sales had surged by 25% in the previous year, and that in the 2019 fiscal year, more than 30% growth was achieved under the promotion of comparable sales and store expansion. The annual growth rate of the whole greater China region was over 20%, but it still accounts for 3.5% of the total income of the group, which is about 220 million US dollars.

The total income of Ralph Lauren Corp. in the fourth quarter is 1 billion 505 million 700 thousand US dollars, which is better than the market expectation of US $1 billion 480 million, which is 1.5% lower than that of the same period last year, and 1.2% increase after excluding the exchange rate effect.

Net profit fell 23.5% to $31 million 600 thousand compared with the same period last year, and EPS also dropped to 0.39 US dollars from 0.50 US dollars in the same period last year.

The adjusted EPS of the restructuring fee and other one-time expenses was $1.07, far better than the market expected $0.90.

The board decided to raise the quarterly dividend by 10% to $0.6875 per share, and the annual dividend rose to $2.75 per share.

Ralph Lauren Corp. (NYSE:RL) has fallen 13.2% in the past eight trading days due to the sharp drop in trade between China and the US.

Jane Nielsen, chief operating officer and financial officer, revealed at a conference call that the group had 1/4 products purchased from China, and the products of Polo and Lauren series knitted sweaters, polo shirts and shoes shoes had been reduced.

Last Friday, the first round of US $200 billion tariff adjustment on Chinese goods was launched on the handbag of fashion fashion industry. Jane Nielsen said it had limited influence on the group.

She also stressed that "the team is well prepared for all kinds of situations" and has accelerated the introduction of new suppliers to mitigate the long-term impact of any potential tariff policy. The proportion of the single procurement market is now below 30%.

If we finally need to pfer tariff costs to consumers, JaneNielsen says, "we will do so".

Management now expects the current fiscal year 2020 to achieve 2%-3% fixed exchange rate revenue growth, which means that it can maintain the level of 3% in the fiscal year, and the adjusted operating margin will be further increased by 40-60 basis points based on the improvement of 70 basis points in 2019.

This year's capital expenditure budget is US $300 million.

Ralph Lauren Corp. (NYSE:RL) had a sharp fall of 9% at the beginning of Tuesday, closing at $113.95 a day, narrowing to 3.7%.

In 2019, the stock increased by 10.1%.