Ralph Lauren sales fall 4.3%, while net income plunged 40%
Luxury fashion retailer Ralph Lauren Corp reported a 4.3 percent decline in quarterly sales, hurt by unusually warm weather in North America, lower tourist traffic and a strong dollar.
The company’s shares were down 12.6 percent at $101 in premarket trading on Thursday.The company’s net income fell to $131 million, or $1.54 per share, in the third quarter ended Dec. 26, from $215 million, or $2.41 per share, a year earlier.
Net revenue fell to $1.95 billion from $2.03 billion, while sales at established stores fell 7 percent.
Ralph Lauren said it now expects revenue to fall by about 3 percent for the year ending April 2017, with the strong dollar pulling down revenue by 4 percentage points. The company had previously forecast sales to remain flat for the period.
The company also forecast current-quarter revenue to be flat to down 2 percent.