Ralph Lauren Corp’s third-quarter earnings missed Wall Street expectations. The company’s share price fell sharply, down as much as 16 percent at the bell, on the lowered expectations and tough holiday quarter.
Highlights from the period ending Dec. 27 were:
Net income for the quarter was $215 million, or $2.41 per diluted share. In the year-ago period, profits were $237 million, or $2.57 per share. Analysts has predicted the firm would reach $2.50 per share.
Net sales for the quarter reached $2 billion, a 1 percent gain over the same period a year ago, when sales were $1.97 billion. Wholesale net sales slipped to $837 million compared to the year-ago period, hindered by currency exchange rates. Retail net sales grew to $1.1 billion. Analysts had expected the firm to reach $2.09 billion.
Licensing revenue increased during the quarter to $47 million.
The firm reduced guidance for fiscal year 2015. The firm expects revenues to increase by only 4 percent with a constant currency rate, a reduction from the 5 to 7 percent growth earlier announced.
Ralph Lauren also cautioned that it expected a negative impact on revenue and the bottom line thanks to an unfavorable foreign exchange.