Ralph Lauren margins fall, shares hit

(Reuters) - Ralph Lauren Corp (RL.N) posted a sharp drop in quarterly margins on Wednesday, hurt by rising costs, and its shares fell in premarket dealings.

Shares fell 5.7 percent as gross margin fell dropped to 56.6 percent from 58 percent a year earlier.

The clothing maker, which makes brands including Polo, Club Monaco and Chaps, said net income rose to $233.5 million, or $2.46 a share, in the second quarter ended October 1 from $205.2 million, or $2.09 a share, a year earlier.

Analysts on average had forecast $2.24 a share, according to Thomson Reuters I/B/E/S.

(Reporting by Phil Wahba in New York and Brad Dorfman in Chicago, editing by Gerald E. McCormick)