BUZZ-Luxury: Burberry, Ralph Lauren next turnarond stories - CS

** Credit Suisse (IOB: 0QP5.IL - news) thinks that the next turnaround story in the luxury sector could be companies with declining sales, margin pressure and falling cash flow return on investment largely as a result of brand fatigue and lack of cost discipline

** Broker ups Burberry and Ralph Lauren to "outperform" - top turnaround picks - and raises their PTs (Other OTC: PTSH - news) by 21 pct to 2,000p and 22 pct to $111, respectively

** Burberry has seen the biggest management reshuffle since its IPO and is well placed to capitalise on the need for newness in the sector thanks to apparel exposure, according to CS

** Ralph Lauren is on track to return to meaningful growth and margin expansion from 2019, CS says

** Broker remains positive on Tod's, believing in a stabilizing earnings momentum and a margin recovery story

** CS maintains "neutral" on Hugo Boss (IOB: 0Q8F.IL - news) , Ferragamo , and Michael Kors (Swiss: KORS.SW - news)

** Hugo Boss still faces a challenging suit market while Ferragamo's transition phase is likely to hurt margins and trigger further earnings downgrades, CS says

** CS also has concerns about Michael Kors' underlying brand health, in need of a store and wholesale distribution rationalisation and re-focus on pricing discipline