Ralph Lauren (RL) Stock Sliding on Weak Comp Sales

NEW YORK (TheStreet) -- Shares of Ralph Lauren  (RL) are sliding, down 1.73% to $130.90 in early market trading Wednesday, after the retailer reported its fiscal fourth quarter earnings results this morning.

Ralph Lauren earned $1.69 per share for the fourth quarter, topping the $1.32 per share analysts polled by Thomson Reuters were expecting.

Revenue for the quarter came in at $1.9 billion, topping Wall Street expectation for revenue of $1.88 billion.

But, Ralph posted a wider-than-expected margin in comparable store sales. The figure fell by 4% in the quarter, compared to the 1% drop analysts were expecting.

The company also announced an additional $500 million stock repurchase program for shares of its class A common stock.

In addition to the $80 million available at the end of the fourth quarter of fiscal 2015 from the previously authorized stock repurchase program, the company's total current authorization now amounts to $580 million.

New York City-based Ralph Lauren is engaged in the design, marketing and distribution of products, including men's, women's and children's apparel, accessories, fragrances and home furnishings.

Insight from TheStreet's Research Team:

Michael Khouw commented on Ralph Lauren in a recent post on ActionAlertsOPTIONS.com. During the most recent weekly roundup, this is what Khouw had to say about the stock:

What to Watch: RL is a mature company that is in the luxury goods space, competing with Coach (COH:NYSE), Michael Kors (KORS:NYSE), Louis Vuitton, Gucci, Marc Jacobs and Prada. The global luxury goods segment is expected to continue to grow as demand rises.

That said, RL missed analysts' estimates in its fiscal third-quarter earnings and cut 2015 revenue forecast back in February. Should the company post another soft quarter and further warn on 2015, RL could be under pressure.

-Michael Khouw, 'Weekly Roundup' originally published 5/11/2015 on ActionAlertsOPTIONS.com.

Want more information like this from Michael Khouw and TheStreet Research Team BEFORE your stock moves? Learn more about ActionAlertsOPTIONS.com now.

Separately, TheStreet Ratings team rates RALPH LAUREN CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate RALPH LAUREN CORP (RL) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself."

You can view the full analysis from the report here: RL Ratings Report

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