NEW YORK, United States — Ralph Lauren Corp. shares rose the most in three weeks after Credit Suisse Group AG analyst Christian Buss said the company was making progress on its plan to streamline the organization.
The company’s shift from a regional structure to a globalized business should yield long-term benefits, Buss said in a report on Thursday. After meetings with Chief Financial Officer Bob Madore, Buss said he believes that profit margins are likely to rebound in fiscal 2017.
Ralph Lauren has expanded into new product lines as it tries to combat falling traffic and heavy discounting in the U.S. The retailer’s overseas sales also have taken a hit from the dollar’s appreciation against the euro and other currencies. To cope, the retailer has said it will raise prices and negotiate for lower manufacturing prices.
“We were reassured to hear that overall demand trends are improving,” Buss said in the note. “And the company continues to gain market share through brand introductions such as the new Polo Women’s line and the Polo Sport line that will be available in stores in July.”
Ralph Lauren’s stock climbed 3.6 percent to $139.54 in New York after the report was released, marking the biggest intraday gain since May 28. The shares had declined 27 percent this year through Wednesday’s close.
By Lindsey Rupp; editors: Nick Turner, Kevin Orland.