Ralph Lauren, The Fashion Giant Offers Strong Growth Prospects Essay

Ralph Lauren, The Fashion Giant Offers Strong Growth Prospects Essay

Length: 1132 words (3.2 double-spaced pages)

Rating: Strong Essays

Open Document

Essay Preview

Ralph Lauren (RL), the world’s premier luxury lifestyle brand, is considerably lagging its industry peers of late. In the last 12 months, the stock has declined approximated 4.2% whereas most of its peers have managed high double-digit returns. However, considering its growth strategies, recent earnings-beat, bullish future outlook and general industry trends, Ralph Lauren has all the qualities a good investment should possess.

Solid Q3 earnings and improved guidance
Driven by a strong top-line performance along with leveraged selling, general and administrative (SG&A), Ralph Lauren earnings per diluted share surged 11% to $2.57 in the fiscal-third quarter. The company’s net revenues increased 9.2% to $2 billion. The performance beat consensus analysts’ estimate of $2.51 per share, not to mention the revenues performance, which was at the high end of its 8% to 10% growth forecast. The robust growth was mainly supported by improved performance across the company’s wholesale and retail segments, in all key markets around the world. Exiting 2013, the company had $1.4 billion in cash and investments on balance sheet compare with $1.3 billion in year-ago quarter.

Bolstered by a strong quarterly performance, the company raised if fiscal 2014 revenue outlook to the top end of it previous guidance range. The company raised fiscal revenue outlook to 7% growth compared with its earlier guidance of 5% to 7%. For Q4 of fiscal 2014, the company expects consolidated net revenues to increase by 10% to 12%, while Operating margin is forecasted to grow in the range of 50 – 90 bps from the year-ago level of 11.1%.

Wholesale business to drive gains
Despite a mixed impact from the integration of Chaps men’s sportswear and net negative foreign...


... middle of paper ...


... the previously authorized $230 million available at the end of the third quarter, bringing its total current authorization to $730 million. Ralph Lauren is one of stocks in the industry that has share repurchase program. Unlike most of its peer, it has reduced its share count by 9.67% over the last five years.

Bottom line
In the highly competitive fashion retail business, brand strength is a great way to fend off competition. Not only is Ralph Lauren a great brand but also a great business model that is focused on inspiration and design, product development, effective advertising and marketing, and pleasurable in-store experiences. Furthermore, the case for Ralph Lauren is supported by strong financial result and shareholder value creation over the long term. All signs indicate that the company is well positioned for further success in both short and long term.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Brand Description Of Ralph Lauren : Fashion Designer Essay

- Ralph Lauren Fashion Designer (1939- ) The name of the company that I decided on for my product and company brand description is Ralph Lauren. Ralph Lauren is one of the biggest clothing designers in the United States. He's best known for his sportswear line Polo Ralph Lauren which is the backbone of his clothing company. Ralph Lauren started his business in 1967, and it's still up and running today. I chose Ralph Lauren for my topic of discussion because I love his taste in fashion. The majority of the clothes that I own are Ralph Lauren....   [tags: Ralph Lauren, Marketing, Retailing]

Strong Essays
802 words (2.3 pages)

Essay on Marketing: Polo Ralph Lauren

- One of the most successful clothing brands in the world, Polo Ralph Lauren has built its success around more than just its line of luxurious designer clothes, but the company is one of the top marketing designers also. It was awarded “ Luxury Brand of the Year” in 2010 by the Luxury Daily. A company that was founded by a man named Ralph Lifchitz, better known as Ralph Lauren of the Bronx, New York in 1968. Since the age of 12, Lauren’s had a strong appeal and taste for looking classy. He would spend the money he earned working with his father after school, purchasing expensive suites....   [tags: Marketing ]

Strong Essays
1947 words (5.6 pages)

Brand Architecture : Ralph Lauren Essay

- I- Brand foundation: Brand Architecture: Ralph Lauren is an American fashion designer philanthropist, and business executive, best known for the Ralph Lauren Corporation clothing company, Ralph was born as Ralph Lifshitz in year 1939 in New York City. Ralph Lauren started in 1967 under the name of Polo Ralph Lauren, until he expended his designs. Polo Ralph Lauren based on American style leader in luxurious, sophisticated fashion and Striking a balance between “timeless” and “modern” style and to make his full line more impeccably crafted the new sportswear is born....   [tags: Brand, Logo, Brand management, Branding]

Strong Essays
1314 words (3.8 pages)

Ralph Lauren Essay

- Ralph Lauren is American's leading designer in the classic tradition, who has stayed true to his own point of view, despite the seasonal vagaries of fashion. Mr. Lauren has always believed that fashion is function of lifestyle. He believes that clothed should be natural, comfortable and elegant, for the way people live today. His clothes have timeless grace and become more personal and special age. For Mr. Lauren, the starting point is always his concern for quality and attention to detail, while the creative drama comes from his own romantic sense of elegance and reverence for authencity....   [tags: essays research papers]

Strong Essays
2552 words (7.3 pages)

How the Polo Ralph Lauren Brand Has Achieved Such High Success Essay

- Polo Ralph Lauren the brand has become one of successful brand in America and across the world, as a well-known player in the design and lifestyle industry, under bender Polo Ralph Lauren collection of product range from reasonably inexpensive to expensive brand in men’s, women’s and children wear, accessories, perfumes and home furnishings. Widely seen as the number one brand that symbolize the American Style, Polo Ralph Lauren has implemented to its marketing strategy, which has leaded they to become a strong brand equity since being set up....   [tags: four steps of Keller's CBBE model ]

Strong Essays
1559 words (4.5 pages)

How to Spot a Fake Polo Ralph Lauren Essay

- I will demonstrate with images how to distinguish between a genuine polo and a fake one. But of course, I wouldn’t start without a short story. Recently, one of my customers visited the store and couldn’t hide his excitement on his recent vacation in Dubai and how he had discovered a “cheap source” for the popular Polo by Ralph Lauren polos, t-shirts and shirts. He also mentioned that he had also made arrangements for periodic deliveries to Abuja from this Dubai based retailer. I was silent for a while....   [tags: stitching, label, pony]

Strong Essays
1173 words (3.4 pages)

Visual Essay Analyzing and Interpreting of Ralph Lauren Romance a Love Story, A Fragance Ad

- ... The heroine is also depicted as obstinate, wild, free and adventurous type this is illustrated in the image of her riding away on a horse in her wedding dress this also suggest that she is a runaway bride. They eventually marry as the fifth picture shows the man in his tuxedo and the couple embracing both seem happy as they are smiling. Still another significant feature exhibited in the sixth last frame displays a family type portrait of a happy family where the couple’s children are grown up it is my assumption that they have just renewed their vows....   [tags: Perfume. Love, Ad]

Strong Essays
683 words (2 pages)

Essay about Transcendentalism, By Ralph Waldo Emerson

- Transcendentalism is a major concept that originated in New England from 1836 to 1855. It is the idea that people have knowledge about themselves that rises above or goes beyond the five senses. The man credited with leading this revolutionary movement was Ralph Waldo Emerson. He was born in Boston, and used his experience at Harvard and as a Unitarian Reverend to help start this revolution. He eventually would come to the conclusion that the individual is more morally just than religion. He started this shift with his book Nature, which he published in 1836....   [tags: Ralph Waldo Emerson, Transcendentalism]

Strong Essays
1089 words (3.1 pages)

Ralph Waldo Emerson And Transcendentalism Essay

- As the leader of the transcendentalist movement, American philosopher, Ralph Waldo Emerson adhered to the idea that everything in our world is a scaled down representation of the universe at large. Emerson used his Transcendentalist philosophy as a vehicle to share his ideas. He promoted the ideas that the human race should avoid false consistency, and conformity in general in order to follow their own instincts and ideas so that everyone might arrive at a personalized understanding of the world and the universe....   [tags: Ralph Waldo Emerson, Transcendentalism, Concord]

Strong Essays
708 words (2 pages)

The Invisible Man by Ralph Ellison Essay

- The Invisible Man by Ralph Ellison The goal of every person is to find their place in society. The journey itself is a hard one, but sometimes unforeseen obstacles make this journey nearly impossible. The book, The Invisible Man, takes us along the journey with a man that has no name. You may think that it is odd not to give the main character of a book a name, but if you think about it, what purpose does a name serve. Isn't is said that a man's actions speak louder than his words. In this story, the man's actions go hand in hand with his words, to make him desired by some, feared and hated by others....   [tags: Ralph Ellison Invisible Man Essays]

Strong Essays
1750 words (5 pages)