Ralph Lauren Corporations (RL) first-quarter sales and income surpassed market expectations, as the company kept discounting and inventory in check.
Ralph Lauren shares closed higher for a fourth consecutive trading session on Tuesday. It has been the steepest daily surge in at least a year. The stock went up 13.28% ($10.38) to $88.53, after touching an intraday high at $88.75, or a price level not seen since January 30th ($88.83). In the week ended on August 6th the shares of the apparel & accessories manufacturer added 2.72% to their market value compared to a week ago, which marked a third consecutive period of gains. The stock has extended its advance to 17.03% so far during the current month, following a 2.51% surge in July. The latter has been a second straight month of gains. For the entire past year, Ralph Lauren shares lost 18.98%.
Comparable-store sales were reported to have shrunk 7% during the first quarter ended on July 1st, or at a lesser rate than what had been expected by analysts surveyed by research firm Consensus Metrix (a 7.5% drop).
Total revenue went down 13.2% to $1.35 billion during the period, while the median analyst forecast had pointed to $1.34 billion in revenue.
At the same time, Ralph Laurens net income was reported at $59.5 million ($0.72 per share) during the quarter ended on July 1st, in comparison with a net loss of $22.3 million ($0.27 per share) during the same period a year ago.
The companys earnings per share, excluding special items, were reported at $1.11 during the latest quarter. In comparison, analysts on average had anticipated earnings of $0.94 per share.
Meanwhile, adjusted gross margins were reported to have risen 210 basis points to 63.2% during the first quarter, as costs fell at a double-digit rate.
Inventory levels were reduced by 31% year-on-year during the latest three-month period.
According to CNN Money, the 16 analysts, offering 12-month forecasts regarding Ralph Lauren’s stock price, have a median target of $75.00, with a high estimate of $80.00 and a low estimate of $66.00. The median estimate is a 15.28% decrease compared to the closing price of $88.53 on August 8th.
The same media also reported that 17 out of 22 surveyed investment analysts had rated Ralph Lauren’s stock as “Hold”, while 2 – as “Buy”. On the other hand, 2 analysts had recommended selling the stock.
Daily and Weekly Pivot Levels
With the help of the Camarilla calculation method, todays levels of importance for the Ralph Lauren stock are presented as follows:
R1 – $88.94
R2 – $89.36
R3 (Range Resistance – Sell) – $89.77
R4 (Long Breakout) – $91.01
R5 (Breakout Target 1) – $92.45
R6 (Breakout Target 2) – $93.26
S1 – $88.12
S2 – $87.71
S3 (Range Support – Buy) – $87.29
S4 (Short Breakout) – $86.06
S5 (Breakout Target 1) – $84.61
S6 (Breakout Target 2) – $83.80
By using the traditional method of calculation, the weekly levels of importance for Ralph Lauren Corporation (RL) are presented as follows:
Central Pivot Point – $76.29
R1 – $78.35
R2 – $79.42
R3 – $81.48
R4 – $83.55
S1 – $75.22
S2 – $73.16
S3 – $72.09
S4 – $71.03