Ralph Lauren and Under Armour early Thursday beat earnings estimates for the holiday quarter. Ralph Lauren stock broke out to a nine-year high. Laggard Under Armour reversed lower.
Ralph Lauren Earnings And Stock Action
Early Thursday, Ralph Lauren reported fiscal third-quarter earnings of $4.17 per share on revenue of $1.934 billion. Year over year, Ralph Lauren earnings surged 24.5% and revenue grew 5.6%, marking the second straight quarter of accelerating sales growth. Both beat estimates, according to FactSet.
The luxury lifestyle retailer also lifted its profit-margin outlook for the full year.
All regions exceeded expectations in the critical holiday quarter, led by Asia, the retailer said in an earnings release. China sales boomed more than 30% in constant currency terms.
Ralph Lauren also reported continued momentum in its direct-to-consumer business, which added 1.7 million new consumers during the quarter.
Shares of Ralph Lauren jumped 16.8% to 171.83 in big volume on the stock market today. Shares gapped up out of a flat base with a 148.03 buy point.
The move sent the apparel stock to its best level in nine years, presenting a breakaway gap opportunity. A breakaway gap occurs when a surging stock opens above the 5% buy range of a base's buy point.
Such moves signal strength, and investors should aim to buy as close to the stock's opening price as possible. Specifically, using a five-minute setting on your chart program, use the high of the first five minutes of trade as the entry. For Ralph Lauren on Thursday, that would mark 163.95 as the buy point.
Under Armour Earnings And Stock Action
For the fiscal third quarter, Under Armour posted earnings per share of 19 cents on revenue of $1.486 billion. Year over year, Under Armour earnings rebounded 18.8% while revenue fell 6%, the third consecutive quarter of falling sales, according to FactSet.
Demand in North America was soft during the holiday quarter, the athletic apparel retailer said. But its earnings crushed estimates for 11 cents as the company reined in costs.
Under Armour also raised its margin outlook for the full year.
Shares of Under Armour closed a fraction lower Thursday, after trying to gain. Not far from all-time lows, UA stock is back below the 50-day moving average after rallying in the final quarter of 2023.
