Jamming product in the channel to drive revenue and save a floundering P&L does not work (just ask J Crew). Fortunately, RL is in far better control of its destiny.
Ralph Lauren remains near the top of my favorites list, and its promotional activity remains very much in check – especially to other parts of US retail (note recent J Crew results).
RL’s on-line promotional activity with ‘End of Summer 2’ and ‘Back to School’ remains about 5% above last year’s level, but that’s actually better than its ‘End of Summer 1’ sale, which was about 10% above last year.
Not a huge factor in the grand scheme of this story, but my view is that RL will print $4.50 this year vs. consensus at $4.13. These clearance checks along with my own sources give me more comfort that inventories are not getting out of control.
Ralph Lauren remains near the top of my favorites list, and its promotional activity remains very much in check – especially to other parts of US retail (note recent J Crew results).
RL’s on-line promotional activity with ‘End of Summer 2’ and ‘Back to School’ remains about 5% above last year’s level, but that’s actually better than its ‘End of Summer 1’ sale, which was about 10% above last year.
Not a huge factor in the grand scheme of this story, but my view is that RL will print $4.50 this year vs. consensus at $4.13. These clearance checks along with my own sources give me more comfort that inventories are not getting out of control.