Ralph Lauren said reduced wholesale shipments to Europe and a tax cost drove its fiscal second-quarter net income down by 8 percent and lowered its revenue expectations for the year amid a global slowdown.
But the luxury fashion company’s second-quarter results topped analysts’ expectations, and its shares rose modestly.
The 45-year-old company, which owns the Ralph Lauren Collection and Polo by Ralph Lauren brands, sells its products at department stores, its own shops and through other retailers.
Ralph Lauren said 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 said it plans to discontinue its Rugby brand to focus on more-profitable brands.
Ralph Lauren also lowered sales expectations for fiscal 2013 to 2 percent to 3 percent growth, from a prior forecast of mid-single-digit growth.
Shares rose 1.1 percent, to $160.75 yesterday.