May 23 Ralph Lauren Corp on Thursday
reported sales that fell below its own projections, hurt by
fewer deliveries to European department stores, but gave a
fiscal year forecast that suggests it expects its overall
business to pick up.
Shares, which hit a 52-week high on Wednesday, fell 4
percent to $181.00 from $188.06 in premarket trading.
The fashion company, known for its namesake brand as well as
others such as Club Monaco, said net revenue, including
licensing revenue in the fourth quarter that ended March 31,
rose 1.3 percent to $1.64 billion, a bit below Wall Street
projections for $1.7 billion.
In February, Ralph Lauren had forecast revenue would be up
by a mid single-digit percentage.
Ralph Lauren gets about half of its business from wholesale
orders to retailers such as department store chain Macy's Inc
. Wholesale sales fell 4 percent in part because of fewer
orders to Europe and the discontinuation of its American Living
brand, which J.C. Penney Co Inc used to sell.
At Ralph Lauren's own stores open at least a year, which
generate about half of sales, revenue was up 7 percent.
For the fiscal year that began last month, Ralph Lauren
forecast company-wide revenue will rise 4 percent to 7 percent
in the new fiscal year.
Net income rose to $127.2 million, or $1.37 per share, from
$94.4 million, or 99 cents per share a year earlier. Excluding
charges associated to its discontinuation of its Rugby brand,
Ralph Lauren had a profit of $1.41 per share, better than the
$1.30 Wall Street had expected, as the company benefited from
lower cotton costs.