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I'm Getting Levered Long The Ralph Lauren Dip

I'm buying Polo Ralph Lauren (RL) this week on the Q3 post-earnings drop shares have taken. Shares are now off 26.2% from 52-week highs set in late-December.

Sure, there's no doubt that RL is deserving of the beating it has taken in light of its uber weak net sales growth of 90 bps on the quarter, 2.7% growth on the 9M (non-constant currency), especially when breaking out that the weakest growth came from RL's core market - The Americas:

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This news, which makes management's "strong dollar" excuse look particularly weak in that light, only helps to underline the problems that can surface with not getting granular with reporting when you're a massive global luxury retailer that does business in size in currencies that aren't the revenue reporting currency. For instance, LVMH Moet Hennessey Louis Vuitton (OTCPK:LVMHF) breaks out revenues by geography and currency -… Read More …