BMO downgrades Ralph Lauren stock
Yahoo Finance Live anchors discuss a BMO analyst’s Underperform rating on Ralph Lauren stock.
BRAD SMITH: It's time for "Cut for Time," three stories, one minute each. You hear the song. You know what time it is. Let's start with this on the day. BMO Capital warning that the rally for Ralph Lauren may be short-lived after downgrading the stock to underperform, saying that the retailer is nearing pandemic peaks, which may be unsustainable. There's been a lot of closet and wardrobe refresh, as people have gotten back out to some of their social functions. But now that we've moved past the holiday season and schedules are starting to dwindle down a little bit, what's that mean for Ralph Lauren and for everybody who's already refreshed their closets?
BRIAN SOZZI: Yeah, of course, this note comes compliments friend of the show, Simeon Siegel, who is not writing about Peloton for a change, downgrading Polo. I think it makes sense to me. We've seen some bad news from a lot of these wholesale players. VF Corp are out with a warning. It is hard to believe Ralph Lauren is going to post anything good in a couple of weeks, no matter how amazing their management team is.
JULIE HYMAN: I mean, I don't know. LVMH has been doing pretty good. Some of the other luxury retailers have been doing well.
BRIAN SOZZI: But I can't find LVMH at Marshalls, and I can find them in Marshalls.
JULIE HYMAN: Oh, that's a good point. You know, it's funny. I was just looking at my Rent the Runway recommendations and stuff. And there's some new stuff from Ralph Lauren. But it's not of how I think of Ralph Lauren. It's much more sort of-- it's not classic--
--shall we say?
BRIAN SOZZI: So it's unclassic.
JULIE HYMAN: It's more trendy-ish--
BRIAN SOZZI: Trendy.
JULIE HYMAN: --which is not what you want from Ralph Lauren, I think. Anyway,
BRIAN SOZZI: All right, cool.