Why Ralph Lauren (RL) Stock is Tumbling Today
On Thursday, shares of iconic American apparel and accessories company Ralph Lauren Corp RL are tumbling fast after the company missed revenue estimates and slashed its full-year outlook.
As of 10:46 AM EST, RL stock was down 17.33%.
Despite beating third quarter earnings expectations, earnings fell to $131 million, or $.54 per share, from $215 million, or $2.41 per share.
Ralph Lauren now expects revenue to be down 3% for the full fiscal year, compared to the previous guidance of flat. The company also forecasts net revenues to be flat to down 2% on a reported bases for Q4 FY16.
Operating margin is now forecasted to decline 2.9-to-3.2 percentage points from a year ago, compared with earlier guidance of a decline of 1.8-to-2.3 percentage points.
"While our recent results have been disappointing, I am greatly encouraged by the changes that are already taking place since the appointment of Stefan Larsson as our new CEO," said Executive Chairman Ralph Lauren.
On a brighter note, RL stock has actually gained 1.8% over the last three months while the S&P 500 has lost 9% in the same time period.
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