Ralph Lauren Stock Rises As Company Announces Leadership Changes: Retail’s In Wait-And-Watch Mode

synopsis

Shares of Ralph Lauren Corp (RL) were up nearly 3% on Tuesday after the luxury fashion brand announced leadership changes, including a new COO, but retail sentiment stayed neutral.

Ralph Lauren named Bob Ranftl as COO, replacing Jane Nielsen who is stepping down after serving as both finance chief and COO. The company plans to pay Ranftl a base salary of $1 million, and an annual target bonus of up to 100% of his annual salary earnings, MarketWatch reported.

Ranftl, who joined Ralph Lauren in 2015, has served in multiple financial and commercial roles within the company, is currently the regional CEO for North America. His appointment will become effective March 30, according to a company statement. He will be succeeded in this role by Mercedes Abramo, who will join the company on March 1.

“With his global Ralph Lauren experience, extensive operational background and deep love for our brand, Bob is uniquely qualified to serve as our next COO after laying strong foundations that pivoted North America to growth,” Patrice Louvet, the company’s president and CEO, said.

Sentiment on Stocktwits continued to be ‘neutral’ following the leadership changes. Message volumes were in the ‘normal’ range.

RL sentiment meter and message volumes on Jan 22 as of 12:26 am ET

For its third quarter, Wall Street analysts expect Ralph Lauren to report $4.51 in earnings per share on revenues of $2.01 billion, according to Stocktwits data.

Last week, ​​UBS analyst Jay Sole raised the firm's price target to $315 from $300 with a ‘Buy’ rating, Fly.com reported. According to the report, the market still underestimates how recent tax cuts, government spending, and deregulation actions could supercharge apparel and footwear spending as well as sentiment.

Ralph Lauren stock is up 7% year-to-date.

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