ralph lauren sees second-quarter revenue drop, shares skid
Ralph Lauren (RL. N)
Revenue is expected to decline this quarter, affected by reduced distribution of Chinese partners and closure of American lifestyle brandsquarter growth.
The clothing maker\'s share price fell 4.
$ 5% to $146.
55 on Wednesday morning.
Ralph Lauren said net income is expected to decline in the medium termsingle-
The digital percentage in the second quarter, with sales in its own stores rising, partially offset the decline in wholesale business for department stores and other retailers.
Profit and sales exceeded expectations for the first quarter ended June 30ago period.
Stronger though. than-
Morningstar analyst Peter Wahlstrom said investors were \"intimidated\" by the management\'s cautious stance and pessimistic comments on the impact of the global economic situation on consumer spending and its income as a result \".
The company is known for its ability to sell a variety of clothing
From Luxury to more affordable brands like Monaco club-
The economic situation remains grim, he said.
\"The outlook for consumer spending and global economic growth remains challenging and we are planning accordingly,\" Roger Farah, COO, said in a statement . \".
This is the second consecutive quarter of Ralph Lauren warning about the possibility of a slowdown in sales.
Three months ago, the company warned that shopping would slow in Europe and Europe. end customers.
Wholesale sales fell twice year on year this quarter
The percentage of figures in Europe offset strong figures in North America.
Ralph Lauren\'s sales were affected as it decided to phase out stores run by local Chinese partners and replace them with companies --run stores.
After the department store J. , the company\'s sales will be further hurtC.
Penney Company (JCP. N)
Give up American Life brand this summer.
Ralph Lauren said that fewer points of sale in China and fewer lives in Americans will help reduce revenue growth by 7-
8 percentage points.
Net income rose 5.
$ 1% to $193.
4 million, or $2.
Earnings per share for the first quarter ended June 30 were $184.
1 million, or $1.
$90 a share a year ago.
Wall Street expects earnings per share to be $1.
This quarter was 78.
Revenue rose 4. Between $ 4% and $1. 59 billion.
Wholesale sales increased 3% year on year
In its own stores, store sales grew by 1%.