Ralph Lauren beats by $0.60, beats on revs; provides Q1 and FY24 guidance (147.14)
- Reports Q3 (Dec) earnings of $4.17 per share, excluding non-recurring items, $0.60 better than the FactSet Consensus of $3.57; revenues rose 5.6% year/year to $1.93 bln vs the $1.87 bln FactSet Consensus.
- Guidance Details:
- For Fiscal 2024, the Company continues to expect revenues to increase approximately low-single digits to last year on a constant currency basis, now centering around 2% compared to 1% to 2% previously. Based on current exchange rates, foreign currency is now expected to have a modest benefit on revenue growth of approximately 10 basis points in Fiscal 2024. The Company continues to expect operating margin for Fiscal 2024 to expand approximately 30 to 50 basis points in constant currency to 12.3% to 12.5%, driven by gross margin expansion. Foreign currency is now expected to have a roughly neutral impact on Fiscal 2024 operating margin. Gross margin is now expected to increase approximately 140 to 180 basis points in constant currency (compared to 120 to 170 basis points previously), with reduced freight costs, favorable channel and geographic mix and continued growth in AUR more than offsetting product cost inflation. Foreign currency is now anticipated to negatively impact gross margins by approximately 20 basis points in Fiscal 2024.
- Gross margin expansion is still expected to more than offset higher operating expenses as a percent of revenue due to channel mix shifts and as the Company invests in long-term strategic growth initiatives, notably digital and key city ecosystem expansion.
- For the fourth quarter, the Company expects revenue growth to be in a range centered around 2% in constant currency to last year. Foreign currency is expected to negatively impact revenue growth by approximately 160 basis points. Operating margin for the fourth quarter is expected to expand approximately 350 to 400 basis points in constant currency, driven largely by gross margin expansion, with about 40 basis points of negative foreign currency impact. Foreign currency is expected to negatively impact gross margin by approximately 50 basis points in the fourth quarter.
Gapping down
In reaction to earnings/guidance:
In reaction to earnings/guidance:
- APPS -18.3%, DT -14.9%, GPRO -11.7%, LITE -11.5%, QLYS -10.1% (also increases buyback auth by $200 mln), PYPL -9.4% (also sees shares repurchases of at least $5 bln in FY24), ACLS -8.8%, CMP -6.9% (also terminates lithium brine project in Utah), RPD -6.6%, PAYC -6.3% (also names new Co-CEO; also to expand in UK), FLT -6.2% (also increases buyback auth by $1 bln), BWA -5.7%, NVST -5.5%, AZN -5.2%, NTGR -5%, TPX -5%, SPGI -4.4%, UHAL -4.3%, EG -3.9%, LNC -3.8%, ORLY -3.7%, MKSI -3.7%, ABG -3.7%, EFX -3.6%, ZBH -3.6%, LSPD -3.4%, CCJ -3.3%, FLNC -3.2%, PYCR -3%, HSY -3%, IPG -3%, PM -2.7%, CXW -2.5%, STE -2.3%, KVUE -2.2%, MCK -2.1%, AXTA -1.7%, MOH -1.5%, ENS -1.1%, HOG -1.1%, CX -1%, SNA -1%
Other news:
- TENX -58.5% (Enrolls First Patient in Phase 3 LEVEL Study Evaluating TNX-103) L -3.7% (files mixed shelf securities offering)
- AUTL -3.5% (Autolus Therapeutics and BioNTech (BNTX) announce strategic CAR-T Cell therapy collaboration; prices 58333336 American Depositary Shares at a price of $6.00/ADS for total gross proceeds of $350 mln)
- ALEC -1.7% (announces first patient dosed in PROGRESS-AD Phase 2 clinical trial of AL101/GSK4527226 in patients with early alzheimer's disease)
- CLNE -1.4% (announced the successful completion and operational launch of its latest renewable natural gas production facility at Tri-Cross Dairy in Viborg South Dakota)
- COR -0.9% (Walgreens Boots Alliance (WBA) sells shares of Cencora for $992 million of proceeds)
Analyst comments:
- NVST -5.5% (downgraded to Mkt Perform from Outperform at William Blair)
- NYCB -5.1% (downgraded to Neutral from Buy at DA Davidson)
- ZI -3.9% (downgraded to Sell from Neutral at Citigroup)
- EQNR -3.4% ( downgraded to Hold from Buy at DZ Bank)
- HTZ -2.4% (downgraded to Equal-Weight from Overweight at Morgan Stanley)
- BABA -2.1% (downgraded to Neutral from Outperform at Macquarie)
- WERN -1.3% (downgraded to Hold from Buy at Stifel)
- AXP -1.2% (downgraded to Equal-Weight from Overweight at Morgan Stanley)
- FTNT -1% (downgraded to Sell from Hold at DZ Bank)
- OMF -1% (downgraded to Neutral from Overweight at Piper Sandler)
Gapping up
In reaction to earnings/guidance:
In reaction to earnings/guidance:
- ARM +29.4%, CFLT +24.4%, OSCR +19.5%, BLBD +8.5%, DIS +7.6% (also to invest $1.5 bln in Epic Games; also increases dividend by 50%; announces new share repurchase program; also to make full suite of ESPN channels as standalone digital platform in fall 2025), BDC +7.5%, VKTX +7.4%, MPWR +6.4% (also acquires Axign B.V.; also increases dividend), UAA +5.7%, GL +5.3%, BTI +5.3%, WMG +5% (also launches plan to achieve $200 mln in annual savings ), CYBR +4.9%, WMS +4.7%, MAS +4.7%, QNST +4.5%, RDN +4.1%, CPA +4.1%, RRR +4.1% (also declares $1/sh special dividend), SWI +3.7%, UTI +3.4%, UL +3.4%, WYNN +3.1%, ARES +3%, PDM +2.9%, APO +2.9%, SLF +2.7%, MT +2.6%, OHI +2.5%, HAE +2.5%, EHC +2.4%, TDG +2.4%, GTES +2.4%, TPR +2.2%, CSGS +2.1% (also increases dividend), BN +1.9%, ITT +1.8%, CENT +1.7%, THC +1.6%, ALL +1.5%, NFG +1.5%, COTY +1.4%, STLA +1.4% (sales update), NWSA +1.2%, BAX +1.1%, TROW +1%, TTGT +0.9%, SAVE +0.9%, PBH +0.9%, KIM +0.9%
Other news:
- ACTG +8.8% (licensing and settlement agreements relating to its WiFi-6 patent portfolio)
- ADVM +6.4% (announces preliminary safety and efficacy data from the ongoing LUNA Phase 2 trial in patients with wet age-related macular degeneration) DO +5.8% (announces new floater commitments)
- IMGN +5.7% (lifting after disclosing AbbVie (ABBV) merger update; expects the closing of the transactions to occur on or about February 12 2024)
- GTN +2.3% (issues statement relating to DIS FOX WBD stremaing service)
- SNPS +2.3% (mulling selling its software business according to Bloomberg)
- FUBO +2.1% (issues statement regarding Sports Streaming JV)
- IONS +1.9% (FDA has granted Fast Track designation to Ionis and AstraZeneca's (AZN) eplontersen)
- SF +1.7% (raises cash dividend by 17% to $0.42 per share)
- OMAB +1.4% (Jan traffic)
- ALK +1.1% (ALK and HA receive second request from DOJ)
Analyst comments:
- CRTO +3.4% (upgraded to Overweight from Equal Weight at Wells Fargo)
- OHI +2.5% (upgraded to Neutral from Underperform at Exane BNP Paribas)
- SPR +2% (upgraded to Outperform from Market Perform at TD Cowen)
- ALLY +1.8% (upgraded to Overweight from Equal-Weight at Morgan Stanley)
- DFS +0.9% (upgraded to Overweight from Equal-Weight at Morgan Stanley)
Early premarket gappers
-
Gapping up:
- CFLT +26%, ARM +24.5%, OSCR +23.3%, BLBD +8.6%, ACTG +8.5%, MPWR +7.7%, BTI +6.4%, DIS +6.2%, WMG +6%, VKTX +5.5%, GL +5.3%, QNST +4.7%, RDN +4.1%, RRR +4.1%, WYNN +3.9%, UTI +3.7%, HAE +3.7%, UL +3.4%, NWSA +3.3%, ARES +3%, SLF +2.7%, BKH +2.6%, EHC +2.4%, GTN +2.3%, RKLB +2.3%, FORM +2.3%, CPA +2.2%, FUBO +2.1%, CSGS +2.1%, MT +2%, SF +1.7%, CENT +1.7%, OHI +1.6%, MAT +1.6%, NFG +1.5%, SNPS +1.4%, ALL +1.4%, ALK +1.1%, BNTX +1.1%, DAN +0.9%, TTGT +0.9%, PBH +0.9%
-
Gapping down:
- TENX -51.6%, APPS -16.3%, ACLS -9.3%, PYPL -9.2%, QLYS -8.6%, GPRO -7.6%, RPD -7%, PAYC -7%, CMP -6.9%, AZN -6.2%, NVST -5.5%, ORLY -4.9%, MKSI -4.4%, UHAL -4.3%, EG -3.9%, L -3.7%, FLT -3.6%, NTGR -2.9%, FLNC -2.8%, EFX -2.6%, CXW -2.5%, MCK -1.9%, SANA -1.5%, MOH -1.5%, ENS -1.1%, MUR -1%, PYCR -1%, COR -0.9%, SAVE -0.9%, HMC -0.8%
Zegna Group to Build New Footwear, Leather Goods Production Facility
The plant, designed by ACPV Architects Antonio Citterio Patricia Viel, will be located in Sala Baganza, near Parma and is scheduled to be completed by December 2026.
MILAN – As part of its strategy to rely on its own manufacturing capabilities and supply chain, the Ermenegildo Zegna Group plans to build a new luxury footwear and leather goods production facility in Sala Baganza, near Parma.
The plant is scheduled to be completed by December 2026 and is expected to employ more than 300 people at full capacity in 2027.
“Luxury footwear and leather goods are flagships of Italian manufacturing. While we are creating a true center of excellence focused on these important aspects of the Italian luxury industry by opening this new facility, the center will be more than just a production facility,” said Gildo Zegna, chairman and chief executive officer of the group. “It will play an important role as a training ground for a new generation of artisans, ensuring the ongoing viability of these important skills and working to preserve the uniqueness of Made in Italy. Parma is the ideal location for this project, building on the region’s long history of craftsmanship and expanding our presence there.”
The facility’s aim will also be to support the growth of Zegna’s successful Triple Stitch sneaker and it is viewed as further strengthening the group’s customization offer as a research and development center.
With the approval of local organizations, the 135,000-square-foot facility will be constructed on a 10-hectare plot of land in the northern Emilian Apennines, located at about six miles from the center of Parma. It will be designed by Milan-based architecture and interior design studio ACPV Architects Antonio Citterio Patricia Viel and boast “large indoor and outdoor multifunctional spaces into the natural landscape,” the company said on Thursday.
Among the most recent projects by ACPV Architects are the new Rolex store in Milan’s Galleria Vittorio Emanuele II and the Bulgari Hotel in Rome, as well as the upcoming Avenue of the Americas public plaza.
The Zegna group has been steadily building its own textile supply chain, buying for example 60 percent of Tessitura Ubertino, a leading manufacturer of high-quality women’s fabrics, based in Prativero, near Biella.
In addition to its own Lanificio Zegna, the group’s textile supply chain includes Lanerie Agnona, Tessitura di Novara, Bonotto and Dondi, all acquired over the years, helping to raise its position in the country in terms of variety and size.
In 2018, the group also finalized the acquisition of a controlling stake in Pelle Tessuta, which specializes in the weaving of leather, and bought a majority stake in Cappellificio Cervo, a historic men’s hat brand based in Biella.
In 2021, as a sign of an increased effort to protect the country’s unique supply chain, Zegna joined forces with Prada to acquire a majority stake in Filati Biagioli Modesto SpA, which specializes in the production of cashmere and other precious yarns.
As reported, the Ermenegildo Zegna Group, which comprises the Zegna, Thom Browne and Tom Ford Fashion brands, closed 2023 on an upward trajectory, with sales grazing 2 billion euros.
Gains across all markets, lifted in particular by North America and Greater China, helped drive group revenues up 27.6 percent to north of 1.9 billion euros, and in the fourth quarter, sales soared 40.1 percent to 570 million euros.
>>> Up
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>>> Down
>>> Down
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* Barco Cut to Accumulate at KBC Securities (+)
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* Redrow Cut to Hold From Buy by Jefferies, Target Cut to 721p From 774p by Jefferies
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* Valmet Cut to Accumulate at Inderes; PT 28 euros
* Zurich Ins. Cut to Hold at HSBC; PT 455 Swiss francs
>>> Initiation
>>> Initiation
* ACS Reinstated Neutral at JB Capital Markets; PT 42 euros
* Mattioli Woods Rated New Buy at Stifel; PT 800 pence (+)
* Onward Medical Rated New Buy at KBC Securities; PT 10 euros
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>>> Call
* Vonovia Rated New Buy at Baader Helvea; PT 33 euros
>>> Call
* Aker BP’s Higher Dividend May Offset ‘Light’ Guidance: RBC (+)
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* Nemetschek Delivers Against High Bar, Morgan Stanley Says
* Orkla Set For Material Consensus Downgrades, Bernstein Says (+)
* Vontobel Posts Weak Results With Decline in Net New Money: Citi (+)
- Adyen (1N8 TH) +7.5%
- *ADYEN 2H NET REV. EU887M, EST. EU875.5M
- Pandora (3P7 TH) +2.3%
- Equinor (DNQ TH) +1.4%
- BAT (BMT TH) +1.3%
- BAT FY Adjusted Operating Profit Meets Estimates
- Prysmian (AEU TH) +1.3%
- Vinci (SQU TH) +1.1%
- Vinci’s 2024 Guidance May Overshadow Results: Street Wrap
- Nemetschek (NEM TH) +0.9%
- Nemetschek Delivers Against High Bar, Morgan Stanley Says
- TUI (TUI1 TH) +0.8%
- Infineon (IFX TH) +0.7%
- Fortum (FOT TH) -0.4%
- Siemens Healthineers (SHL TH) -0.5%
- Talanx (TLX TH) -0.6%
- Talanx Prelim FY Dividend per Share Above EU2, Est. EU2.28
- CTS Eventim (EVD TH) -0.8%
- Kering (PPX TH) -0.8%
- *KERING SEES 2024 RECURRING OPERATING INCOME DECLINING VS 2023
- Sartorius (SRT3 TH) -0.9%
- Sanofi (SNW TH) -1%
- TAG Immobilien (TEG TH) -1%
- Assa Abloy (ALZC TH) -1.1%
- Unilever (UNVB TH) -1.4%
- *UNILEVER 4Q UNDERLYING SALES +4.7%, EST. +4.56%