Horsepower: Why hasn't PE scooped up Ralph Lauren?

George Kush
Rank: King Kong | banana points 1,077

Here is a question for all you M&A, PE guys, why has nobody bought Ralph Lauren? Seems like it has all the things yall like:

  • Great brand (if you disagree let me know)
  • Cash on deck: $1.4B vs $871M in debt
  • Real Estate? ...$1.5B in PP&E, I haven't done the work on this but I imagine those flagship stores are worth a decent amount

So really this seems like it would have a target on the back for some sort of PE deal. It's an iconic american brand, our Burberry or Prada.. that let Brooks Bros, GANT, and Southern (Noun) walk in and eat its lunch when old Ralph decided be on some silly shit and make hipster and western clothes.

Your thoughts? Trying to figure out what I am missing other than a decline in sales and a CEO departure--I'm assuming the "Lauren" family (yes they ditched the Lifshitz name in the family trust as well) wouldn't let him pull all the levers he wanted, so to speak.

PS If you are @vik2000 please disregard everything above because you are completely irrelevant

Comments (18)

Feb 14, 2017

Existing capital structure is largely irrelevant. Why/how do you think operational improvements can be made?

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Feb 14, 2017
Cohle:

Existing capital structure is largely irrelevant. Why/how do you think operational improvements can be made?

I think they need to get back to a more classic style, play off the nostalgia that is emerging about the 1990s.. Get back to targeting their core customer who has been shopping elsewhere as of late.. On the operational side, some stores don't want to carry it because they feel like they're getting undercut online, and lastly you could close some of the physical stores and run a leaner business.

Overwhelming grasp of the obvious.

    • 1
Feb 15, 2017

I'm actually curious about this as well. It seems like the company could do some major advertising and play off the nostalgia associated with the current boom in traditionalism (as you mentioned).

Feb 14, 2017

Never have I seen anyone who got so obsessed with me over the comments online. This idiot makes fool of himself over some dumb comment here http://www.wallstreetoasis.com/forums/starbucks-pl... fucking so-called hedge fund analyst somehow thought customer service = corporate governance, got made fun of, and is now forever obsessed with me lmao.

The fact that this moron is specifically asking for "M&A" and "PE" guys for comments obviously shows his narrow-mindedness and lack of knowledge in areas of finance. Easily one of the most insecure guys I've ever seen here and honestly this numbskull is likely just some undergrad who read a couple of finance books.

Feb 14, 2017

Thank you for continuing to provide me with entertainment. If you had thorough comprehension skills, you would realize I was making a side point about Uber and the topic was about bad corporate governance at Starbucks.. But you don't which is why you are a "corporate analyst"

Overwhelming grasp of the obvious.

    • 1
Feb 14, 2017

Yea... I'm sure that's why you got thrown monkey shit hard. You might as well PayPal me that $10k out from your Nigerian hedge fund. I'll put it to good use instead of you completely losing it.

Feb 14, 2017

You won't because you're not managing any assets hahaha.. But come on big boy put your money where your mouth is

Overwhelming grasp of the obvious.

Feb 14, 2017

You do realize that the only reason your title is hedge fund analyst is because you entered that yourself right? The saddest part is you sound like a retard and the biggest fucking nerd who wants to make a bet on managing $10,000 online with someone you don't know. I've met tons of tools managing people's money, but at least and thankfully they don't sound as dumb as you. I rest my case here. I think anyone on this forum with a brain can easily tell how fake and pretentious you are. Enjoy keep making fool of yourself.

PS: your thread makes no fucking sense, seriously.

Feb 14, 2017

All talk.... No action...

Overwhelming grasp of the obvious.

Best Response
Feb 14, 2017

What the fuck is wrong with both of you

    • 18
Feb 15, 2017

holy shit.

Feb 15, 2017
mrb87:

What the fuck is wrong with both of you

You mean, what the fuck is wrong with this George Kush faggot, who without any reason or provocation, mentions my name in his pathetic meaningless thread?

    • 1
Feb 14, 2017

Hey I offered to make a $10k bet that the fund I work at outperformed any fund in your portfolio but you don't have the balls.... so...

Overwhelming grasp of the obvious.

Feb 15, 2017

we don't certify accounts of undergrads. if you want us to double check on this account, please pm @ivyliga

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Feb 15, 2017

Are you pulling the 2009 and 2010 numbers right from the company filings or are you starting with an earlier year and trying to model 2009, 2010, 2011, etc?

Feb 15, 2017

All of the analysis is based on actual company filings (10K's 2008-2012), we are trying to look for historical invested capital, noplat and free cash flows for the period. I hope that clears it up for you.

Feb 15, 2017

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