Fossil Group Inc. (NASDAQ: FOSL), Ralph Lauren Corp. (NYSE: RL), and Michael Kors Holdings Ltd. (NYSE: KORS) are fresh off earnings, but not everyone is a winner in this class. All these companies have felt the sting of declining traffic in department stores, but only a couple have risen above.
Ralph Lauren may have swung to a loss in the latest quarter on weaker sales and expenses related to the apparel company’s turnaround plan. But still, its core earnings were ahead of expectations. The company posted $1.06 in earnings per share (EPS) on $1.6 billion in revenue, while consensus estimates from Thomson Reuters had called for $0.89 in EPS on $1.53 billion in revenue.
Fossil shares were higher despite news that its profit tumbled as the watchmaker’s global sales dropped. It saw declines in traditional watches. The company reported $1.12 in EPS on $685.4 million in revenue. Consensus estimates predicted EPS of $0.65 and $674.1 million in revenue.
CEO of Fossil, Kosta Kartsotis, commented on the results:
Our financial results for the quarter, while below last year, were very much in line with our expectations from both a top and bottom line perspective. We’re pleased that our sales trends, though still challenging, remained relatively stable considering the disruptive environment. In fact, despite an overall decline in sales, there are several areas of the business that performed well, though they are being masked by continued weakness in the traditional watch category, particularly among our licensed brands. We believe that growth in Fossil and Skagen, strong performance from leathers and progress in wearables are solid indicators that we are on the right track, have the right long-term strategies in place and their performance reinforces our commitment to investing in these strategies to drive future growth.
Michael Kors said results in its latest quarter weren’t as bad as it had predicted, though the accessories maker and retailer warned that dwindling mall traffic and lower tourism in some cities would continue to hurt sales. The company posted $0.63 in EPS on revenue of $987.9 million. The consensus estimates were $0.74 per share and $953.04 million.
Shares of Fossil were trading up 5% at $31.91 on Wednesday, with a consensus analyst price target of $28.67 and a 52-week trading range of $26.03 to $62.80.
Ralph Lauren shares traded up 9.5% at $104.05, with a consensus price target of $97.18 and a 52-week range of $82.15 to $137.38.
Michael Kors was down 2.2% at $49.00, in a 52-week range of $34.83 to $59.49. The consensus price target is $56.67.
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
