the republic logo

Ralph Lauren shares down on disappointing 3rd-quarter earnings and lower 2016 outlook


NEW YORK — Shares in fell more than 22 percent to a multiyear low Thursday after the company cut its outlook for 2016 and reported disappointing earnings it blamed on unseasonably warm holiday weather and a drop in foreign tourist traffic in North America.

The New York-based upscale clothing company reported net income of $131 million, or $1.54 per share, for the fiscal third quarter ended Dec. 26, down 39 percent from $215 million, or $2.41 per share, for the same period a year earlier.

Earnings, adjusted for restructuring costs, were $2.27 per share, which exceeded Wall Street expectations. The average estimate of eight analysts surveyed by Zacks Investment Research was for earnings of $2.11 per share.

The company, whose brands include Polo , Chaps and Club Monaco, posted revenue of $1.95 billion in the period, down from more than $2 billion for the same quarter in 2014 and below analysts' target of $2.03 billion.

Looking ahead, said it now expects fiscal 2016 revenue on a reported basis to decline 3 percent, or rise about 1 percent in constant currency. Previously the company forecast flat revenue on a reported basis, or growth of 3 percent to 5 percent in constant currency.

Analysts surveyed by FactSet expect to post annual revenue of $7.57 billion, which would represent virtually flat revenue.

During a conference call with analysts, , the company's recently-appointed CEO, said will undertake a review of all aspects of the business. The company warned that revenue in fiscal 2017 will decline year over year, but it didn't provide more specific details.

Shares of plummeted $25.61 to $89.95, its lowest level since 2010.


Elements of this story were generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on RL at


Keywords: , Earnings Report

Think your friends should see this? Share it with them!

Story copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Feedback, Corrections and Other Requests: AP welcomes feedback and comments from readers. Send an email to and it will be forwarded to the appropriate editor or reporter.

We also have more stories about:
(click the phrases to see a list)


Follow The Republic:

All content copyright ©2016 The Republic, a publication of AIM Media Indiana unless otherwise noted.
All rights reserved. Privacy policy.