Ralph Lauren Corp. reported third-quarter earnings down 9 percent to $215 million, with revenue up 4.3 percent to $1.99 billion. Those disappointing numbers and the company’s lowered outlook caused its stock to plummet nearly 20 percent—the lowest level since 2012 and the biggest single-day drop since 1998.
“The resilience of the third quarter’s operating profitability is a testament to the strong, consistent operational discipline of our global teams,” said president and COO Jacki Nemerov. “Although our sales were below the expectations we had set, we navigated through the volatile global marketplace by controlling the controllable and delivered an operating margin at the high end of our outlook. Foreign exchange and global consumer spending remain unpredictable, and we are planning our business accordingly. While we are cautious with our outlook, we are bold with our actions to offset some of these ongoing external pressures. Over the next several months, we will implement a new, carefully considered, global brand management structure that we are confident will enable us to operate in a more customer-centric way and provide substantial operating efficiencies.”