Ralph Lauren Corporation Evaluation- Juan Camilo Casas

Background

  • Founded in 1967, New York.
  • Designer Ralph Lauren
  • 26,000
  • 580 stores
  • 7 billion on sales
  • PVH Corporation and Coach, Inc

Financials

  • Way Forward Plan
  • Restructuring cost $400
  • Increased short and long-term debt
  • Cash and equivalents decreased 59%
  • Net income decreased 49%

Ratios

  • Current Ratio: 2.55
  • Quick Ratio: 1.39
  • Debt to Total Assets: 0.115
  • Debt to Equity: 0.659
  • Inventory Turnover: 1.16
  • Return on Total Assets: 6%
  • Return on Stockholder's Equity: 7%
  • EPS declined from 8.56 to 4.65
RL stock has fell 12% since January and 55% in the last 5 years.

Future

  • New CEO
  • Close Stores - 50
  • Reduce workforce
  • Reduce inventory by 14%
  • Finish the " Way Forward Plan"
  • Coffee shops

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