Diamonds and Dogs

2/6/25

Ralph Lauren (RL) jumps 6% on earnings. The maker of Polo easily beat expectations as sales rose 10% to $2.14 billion. North American sales were strong as the global operating environment remains choppy. The got a boost in sales from being the official outfitter of Team USA in the Paris Summer Olympics, as well as from sponsoring Wimbledon and the U.S. Open Tennis championships. China was also a bright spot as China targets and blacklists other retailers.

Honeywell (HON) is down following earnings and news of splitting the company into three. Earnings did beat expectations as sales rose 6.9% to $10.09 billion. The company did provide downside guidance for the full year 2025. Honeywell also plans to separate into Automation, Aerospace and Advanced Materials. GE did a similar thing a few years back that seemed to work. Investors, however, are so convinced so far today.