Bulletin
Investor Alert

London Markets Open in:

The Ratings Game Archives | Email alerts

Aug. 6, 2020, 3:30 p.m. EDT

Versace parent Capri Holdings and Ralph Lauren slump as luxury sales takes a hit during pandemic

Sales for Capri Holdings and Ralph Lauren plummeted in the most recent quarter

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Capri Holdings Ltd. (CPRI)
  • X
    Ralph Lauren Corp. Cl A (RL)
  • X
    Tractor Supply Co. (TSCO)

or Cancel Already have a watchlist? Log In

By Tonya Garcia, MarketWatch

1 2

“Given the brand’s significant exposure to the challenged North American wholesale channel, albeit reduced from prior years, we think further footprint distribution rationalization is likely to occur for the brand,” wrote analysts led by John Kernan.

“Revenue recapture may not be linear even with the shift to digital and improved CRM [customer relations management] capabilities.”

Rural lifestyle specialty chain Tractor Supply Co. /zigman2/quotes/202009274/composite TSCO +0.35%   , do-it-yourself home goods retailer Lowe’s Cos. Inc. /zigman2/quotes/205563664/composite LOW -0.42%   and athletic goods retailer Hibbett Sports Inc. /zigman2/quotes/201173500/composite HIBB -2.82%   have been among the shops that consumers have been flocking to amid the pandemic. Also on the list are grocers like Kroger Co. /zigman2/quotes/206215053/composite KR +0.31%  , Walmart Inc. /zigman2/quotes/207374728/composite WMT -0.09%   and Target Corp. /zigman2/quotes/207799045/composite TGT -0.62%  .

Don’t miss: Amazon is making gains with older consumers as more people turn to e-commerce during COVID-19

But GlobalData’s Saunders also points out that Capri and Ralph Lauren face hurdles that pre-date the coronavirus.

“Looking beyond the pandemic, when Capri does emerge it will not only have to fix the financial damage but also tackle issues with some of its brands — particularly Michael Kors,” he said. “Even before the crisis, performance was not where it should be because of a lack of clarity in ranges and brand messages.”

And Ralph Lauren must continue its turnaround efforts.

“Ralph Lauren cannot be blamed for the terrible numbers,” Saunders said. “However, as consumer preferences shift, the company needs to work harder to reinvent itself and to pivot into new channels and segments to secure growth.”

Ralph Lauren stock has fallen 44.3% for the year to date while Capri shares are down 60.6% for the period.

The S&P 500 index /zigman2/quotes/210599714/realtime SPX +1.19%   has risen 3.6% for 2020 to date.

/zigman2/quotes/202009274/composite
US : U.S.: Nasdaq
$ 133.02
+0.46 +0.35%
Volume: 1.27M
Oct. 29, 2020 4:00p
P/E Ratio
20.65
Dividend Yield
1.20%
Market Cap
$15.44 billion
Rev. per Employee
$259,379
loading...
/zigman2/quotes/205563664/composite
US : U.S.: NYSE
$ 160.75
-0.67 -0.42%
Volume: 3.70M
Oct. 29, 2020 4:03p
P/E Ratio
21.36
Dividend Yield
1.49%
Market Cap
$121.99 billion
Rev. per Employee
$230,029
loading...
/zigman2/quotes/201173500/composite
US : U.S.: Nasdaq
$ 39.23
-1.14 -2.82%
Volume: 334,434
Oct. 29, 2020 4:00p
P/E Ratio
20.42
Dividend Yield
N/A
Market Cap
$667.87 million
Rev. per Employee
$109,639
loading...
/zigman2/quotes/206215053/composite
US : U.S.: NYSE
$ 32.26
+0.10 +0.31%
Volume: 7.31M
Oct. 29, 2020 4:00p
P/E Ratio
9.75
Dividend Yield
2.23%
Market Cap
$24.90 billion
Rev. per Employee
$269,849
loading...
/zigman2/quotes/207374728/composite
US : U.S.: NYSE
$ 139.92
-0.12 -0.09%
Volume: 5.05M
Oct. 29, 2020 4:00p
P/E Ratio
22.30
Dividend Yield
1.54%
Market Cap
$396.84 billion
Rev. per Employee
$223,654
loading...
/zigman2/quotes/207799045/composite
US : U.S.: NYSE
$ 154.25
-0.96 -0.62%
Volume: 2.16M
Oct. 29, 2020 4:02p
P/E Ratio
22.26
Dividend Yield
1.76%
Market Cap
$77.70 billion
Rev. per Employee
$212,261
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,310.11
+39.08 +1.19%
Volume: 2.74B
Oct. 29, 2020 5:17p
loading...

Tonya Garcia is a MarketWatch reporter covering retail and consumer-oriented companies. You can follow her on Twitter @tgarcianyc. She is based in New York.

1 2
This Story has 0 Comments
Be the first to comment
More News In
Industries

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.