NEW YORK, United States — Ralph Lauren Corp., the upscale apparel company known for Polo and other brands, fell as much as 11 percent in early trading after its third-quarter earnings missed analysts’ estimates and the company cut its forecast.
Net income dropped 9.3 percent to $215 million, or $2.41 a share, from about $237 million, or $2.57, a year earlier, the New York-based company said Wednesday in a statement. Analysts estimated $2.50 on average, according to data compiled by Bloomberg. The company now expects revenue growth of about 4 percent this year, compared with a previous projection of as much as 7 percent.
Ralph Lauren faces a potential $100 million headwind this fiscal year as the dollar appreciates against the euro and other currencies, Robert Drbul, a New York-based analyst at Nomura Holdings Inc., said this week. Europe and Asia make up about a third of the company’s revenue.
Ralph Lauren shares fell as low as $152.04 in premarket trading. They had gained 4.9 percent last year, compared with an 11 percent increase for the Standard & Poor’s 500 Index.
Revenue climbed less than 1 percent to $2.03 billion in the quarter. Analysts estimated $2.09 billion on average.
By: Lindsey Rupp; editors: Nick Turner and Kevin Orland.