Ralph Lauren Falls After Forecast Implies Weak QuarterCotten Timberlake
Ralph Lauren Corp., the retailer of its namesake brand clothing, fell the most in more than two years after its forecast for the current quarter implied profit would trail analysts’ estimates.
The shares sank 8.6 percent to $173.13 in New York for the biggest decline since May 2011. The New York-based company’s shares have jumped 15 percent this year, compared with a 19 percent gain for the Standard & Poor’s 500 Index.
Ralph Lauren said today in a statement that revenue in the quarter through September would rise at a low single-digit percentage rate and that its operating margin would narrow by as much as 350 basis points. The forecast implies profit of $2.28 per share at most, Michael Binetti, an analyst at UBS AG in New York, wrote in a note today. Analysts estimated $2.60, on average.
Net income in the three months ended June 29 fell 6.2 percent to $181 million because of costs from assuming direct control of the Chaps brand and unfavorable foreign-currency trends. The per-share profit matched the average of 14 estimates compiled by Bloomberg. Revenue gained 3.8 percent to $1.65 billion in the quarter, matching analysts’ average estimate.