Companies and Brands

Wednesday's Top Luxury Goods Movers

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Fossil Group Inc. (NASDAQ: FOSL), Ralph Lauren Corp. (NYSE: RL), and Michael Kors Holdings Ltd. (NYSE: KORS) are fresh off earnings, but not everyone is a winner in this class. All these companies have felt the sting of declining traffic in department stores, but only a couple have risen above.

Ralph Lauren may have swung to a loss in the latest quarter on weaker sales and expenses related to the apparel company’s turnaround plan. But still, its core earnings were ahead of expectations. The company posted $1.06 in earnings per share (EPS) on $1.6 billion in revenue, while consensus estimates from Thomson Reuters had called for $0.89 in EPS on $1.53 billion in revenue.

Fossil shares were higher despite news that its profit tumbled as the watchmaker’s global sales dropped. It saw declines in traditional watches. The company reported $1.12 in EPS on $685.4 million in revenue. Consensus estimates predicted EPS of $0.65 and $674.1 million in revenue.

CEO of Fossil, Kosta Kartsotis, commented on the results:

Our financial results for the quarter, while below last year, were very much in line with our expectations from both a top and bottom line perspective.  We’re pleased that our sales trends, though still challenging, remained relatively stable considering the disruptive environment.  In fact, despite an overall decline in sales, there are several areas of the business that performed well, though they are being masked by continued weakness in the traditional watch category, particularly among our licensed brands. We believe that growth in Fossil and Skagen, strong performance from leathers and progress in wearables are solid indicators that we are on the right track, have the right long-term strategies in place and their performance reinforces our commitment to investing in these strategies to drive future growth.

Michael Kors said results in its latest quarter weren’t as bad as it had predicted, though the accessories maker and retailer warned that dwindling mall traffic and lower tourism in some cities would continue to hurt sales. The company posted $0.63 in EPS on revenue of $987.9 million. The consensus estimates were $0.74 per share and $953.04 million.

Shares of Fossil were trading up 5% at $31.91 on Wednesday, with a consensus analyst price target of $28.67 and a 52-week trading range of $26.03 to $62.80.

Ralph Lauren shares traded up 9.5% at $104.05, with a consensus price target of $97.18 and a 52-week range of $82.15 to $137.38.

Michael Kors was down 2.2% at $49.00, in a 52-week range of $34.83 to $59.49. The consensus price target is $56.67.

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