Pacific Growth Keeps Overweight on Ralph Lauren
Pacific Growth reiterated its overweight rating on Polo Ralph Lauren (RL ).
Analyst Andy Graves says his mid-quarter checks are coming in stronger than he expected. He cited a rebound in Ralph Lauren's wholesale business, which struggled a bit earlier in the year. He says the core menswear business has accelerated from a mid-single-digit gain in the first quarter. Also, the European and Japanese wholesale business is tracking well.
Graves says core Ralph Lauren retail same-store sales remain at a double-digit pace after the first-quarter's mid-teen pace. This is well above his estimate of sales in the mid-to-high single-digit range. He thinks the apparel maker's $2.35 to $2.45 fiscal 2005 (Mar.) earnings per share guidance will be raised to $2.40 to $2.50. He maintains the $2.49 fiscal 2005 estimate.
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