Ralph Lauren Lowered Its Annual Forecast Again

U.S.A

Group Ralph Lauren Corp. (NYSE:RL) Ralph Lauren group yesterday released the three quarter results of the 2015 fiscal year that disappointed the market, and lowered its annual performance expectations for the second time in four months, resulting in its stock price plunging more than 13%, the largest single day decline in six years, and the total value of the day was 139.71 US dollars, down by 18.22%.

In the three quarter ended December 27, 2014, net profit fell by 9.3% to $215 million, or earnings per share of $2.41, less than that of Wall Street analysts. The net profit in the 2014 fiscal year was 237 million dollars, or earnings per share were 2.57 dollars.

Revenue grew by only 0.89%, from $2 billion 15 million to $2 billion 33 million, lower than analysts' expectations of $2 billion 90 million, a 3% increase in fixed exchange rates.

Wholesale sales were roughly flat in the same period of the previous year, at $837 million, a 2% increase at fixed exchange rates.

Retail sales increased by 1.7% to 1 billion 149 million US dollars per annualized increase in e-commerce double-digit growth and new store revenue, an increase of about 5% based on fixed exchange rates, representing a 2% decline in the same store sales showing actual sales performance. The fixed exchange rate was unchanged from the same period of the previous year, but still was worse than the 1% quarter growth in the two quarter.

Authorized revenue rose 6% to $47 million.

The gross profit margin of the quarter decreased by 120 basis points to 57% due to the promotion of holiday season and the negative floating of the exchange rate, and the operating profit rate dropped by 110 basis points to 15.5%.

Based on the three quarter performance and the strength of the US dollar,

Corp. (NYSE:RL) Ralph Lauren group lowered its annual revenue forecast.

It is estimated that the annual revenue growth of fixed exchange rate is 4%, which was expected to be 5%-7%. The operating profit margin will drop by 170-190 basis points over the 2014 fiscal year, after which it was expected to fall by 100-125 basis points.

Nomura Holdings Inc. Nomura analysts pointed out that the strength of the US dollar may reduce the group's annual revenue by 100 million US dollars. Since hitting its lowest level in May last year, the US dollar has appreciated by 20% against the major basket of currencies in the world.

In the current four quarter, the Group expects to be fixed.

The next income will grow by a median figure, and the operating margin will drop by 250-300 basis points.

The group president and chief operating officer, Jacki Nemerov, pointed out in the earnings report that foreign exchange movements and global consumer spending are still unpredictable, and the group is developing business plans based on these external conditions.

The group also announced a quarterly cash dividend of $0.50 per share, an increase of 11% over the previous year, bringing the dividend to $2 per share.

At the end of the three quarter, the group had 470 direct outlets, 148 Ralph Lauren, Club Monaco and Polo factory stores, 65 and 257, and operated 504 franchise stores and 209 international authorized stores worldwide.