CEO Leaving Ralph Lauren Over “Difference of Opinion”; Apple Gets De-Throned; “Fake News” Scandal Leaves Facebook Unscathed

Ride the pony…

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Image courtesy of Sira Anamwong/FreeDigitalPhotos.net

Shares of Ralph Lauren fell today, over 11% at one point, all because CEO Stefan Larsson announced he is stepping down after a little over a year on the job. It seems Larsson and the big kahuna himself, Ralph Lauren, just didn’t see eye to eye on how the company should evolve to attract more shoppers, and younger ones, to boot. Which roughly translates to: the two guys just didn’t get along.  Larsson, who used to be the global president of Old Navy,  will step down in three months while the company searches for a new CEO. In the meantime, Ralph Lauren will stay put, in his role as Executive Chairman and Chief Creative Officer while Chief Financial Officer Jane Nielsen will serve as interim CEO. The other thing staying put is a plan – that was already in the works – to enhance the Ralph Lauren brand.  Shares of Ralph Lauren had fallen 22% in the last twelve months and it has had to close several stores and eliminate several jobs. But apparently, and ironically, it’s all part of its growth plan. The news came down during the company’s quarterly report call, where the lifestyle brand reported earnings of $1.86 per share, with revenue down 12% to $1.71 billion. At least that last bit was forecasted. And it was welcome news since analysts expected the company to only pull down $1.64 per share. As for Larsson, he’ll be walking away with a nifty $10 million in severance, not to mention health benefits, for the next two years.

Taking a bite out of the apple…

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Image courtesy of duron123/FreeDigitalPhotos.net

Move over Apple. There’s a new sheriff in town. Well, maybe “sheriff” isn’t quite the right word. But the tech giant has been dethroned, this year anyway, as the world’s most valuable brand, and now ranks as the second most valuable brand. Which is ironic, since yesterday it released its earnings report and brutally beat expectations adding  $3.36 per share on a record setting $78.4 billion in revenue. Analysts predicted earnings of $3.22 per share on $77.3 billon in revenues. But I digress. The company to earn the dubious distinction of being the world’s most valuable company for 2016, as determined by Brand Finance, is none other than Google. No great shock here. Brand Finance takes it upon itself to conduct this yearly study, identifying and ranking the 500 most valuable brands in the world. Google, by the way used to sit in the top spot. But it’s been years. Like five of them, to be precise, since it sat atop this illustrious throne. Apple’s brand value tanked 27% from last year’s $146 billion to this year’s $107 billion. As for Google, its brand is currently valued at $109.5 billion. Part of the problem, for Apple anyway, is that the Apple watch failed to become as fabulous as Apple thought it should be.  Then there’s the fact that the tech giant seems to have no new products on the horizon – that we know of – while battling all the  smart-phone competition. According to Brand Finance, “Apple has failed to maintain its technological advantage and has repeatedly disillusioned its advocates with tweaks when material changes were expected…” That’s gotta hurt. And in case you were wondering, because I know you were, Amazon ranks third with a brand value of $106.4 billion, AT&T comes in fourth at $82 billion, while Microsoft rounds out the fifth spot with a brand value of $76.3 billion. And no, I didn’t forget Walmart or Facebook. They rank eighth and ninth respectively.

That’s just beautiful…

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Image courtesy of bluebay/FreeDigitalPhotos.net

Speaking of Facebook, the social media giant just released its latest quarterly earnings and well, it would be really swell if all companies could have earnings as good as that. And with over one billion users, it’s no wonder the company posted better than expected earnings, to the tune of $2.57 billon with revenues of $8.8 billion and $1.24 added per share. Estimates had Facebook pulling down $1.11 per share and $8.5 billion in revenues while last year at this time Facebook raked in $5.84 billion. If you do the math, that’s a 51% increase over last year. In fact, this quarter marked Facebook’s sixth straight quarter in which it beat forecasts in both profit and revenue. A lot of that success can be attributed to Facebook’s mobile and live video. Its ever lucrative ad revenues also don’t seem to ever disappoint. Facebook is now planning on a hiring spree, especially because it’s looking to create even more community and groups. Its monthly active users are up 17% to 1.86 billion and mobile users were up 21% from last year to 1.74 billion. As for Facebook being enmeshed in the “fake news” controversy, well as you can see, the scandal failed to make a dent at the company. Well, fiscally anyway.

 

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