RL: Ralph Lauren Stock Dives Despite Earnings Beat

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Ralph Lauren (RL) stock is down in early morning trading after forecasting Q1 sales would fall below analyst estimates.

ralph lauren stockRL stock dropped 7.2% in early morning trading.

The decline happened despite sales increases during the fourth quarter.

Revenue for Q4 was up 13.6% to $1.87 billion, beating the average Wall Street estimate of $1.83 billion, according to Thomson Reuters.

Still, Wall Street was more focused on the near-term outlook for Ralph Lauren.

Via Bloomberg:

Sales in the quarter through June will rise as much as 5 percent, the company said today in a statement, implying revenue of about $1.74 billion. Analysts estimated $1.81 billion, on average.

Retailers have been deepening discounts and seeking to create new styles to attract shoppers amid shaky consumer confidence and flagging mall traffic. Ralph Lauren said sales at stores open at least a year fell 2 percent in the quarter through March 29, hurt by unseasonably cold weather.

The name-brand retailer pointed out that its operating margin would decline due to an increase in spending to build its store operations.

RL stock is down 18% year to date.

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Article printed from InvestorPlace Media, https://investorplace.com/2014/05/rl-ralph-lauren-stock-dives-earnings/.

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