Ralph Lauren says reduced wholesale shipments to Europe and a tax cost drove its fiscal second-quarter net income down by 8 percent.
The results topped analysts’ expectations. But the company lowered its revenue expectations for the year.
The clothing and home goods maker says net income for the three months ended Sept. 29 fell to $213.7 million, or $2.29 per share. That compares with $233.5 million, or $2.46 per share, last year. Analysts expected $2.15 per share.
Revenue fell 2 percent to $1.86 billion. Analysts expected $1.83 billion. A planned reduction in wholesale shipments to some European stores hurt revenue.
Ralph Lauren says it plans to discontinue its Rugby brand to focus on more profitable brands.
It also lowered sales expectations for fiscal 2013 to 2 percent to 3 percent growth, from a prior forecast of mid-single digit growth.