Ralph Lauren shares slip after revenue miss

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Ralph Lauren Corp. stock rose 3.6% then fell back to a 0.4% decline in Thursday premarket trading after the luxury lifestyle brand reported fiscal second-quarter revenue that missed expectations. Net losses totaled $39.1 million, or 53 cents per share, after net income of $182.1 million, or $2.34 per share, last year. Adjusted EPS of $1.44 was down from $2.55 last year but ahead of the FactSet consensus for 85 cents. Revenue of $1.19 billion was down from $1.71 billion last year and just below the FactSet consensus for $1.20 billion. Ralph Lauren announced the next step in its business transition, moving the Chaps brand to a fully-licensed business model. Effective Aug. 1, 2021, the company has entered into an agreement with 5 Star Apparel LLC, a division of Oved Group, which will produce and distribute Chaps men’s and women’s clothing. The move will reduce Ralph Lauren’s exposure to North American department store retailers, the company said. Ralph Lauren previously announced workforce reductions that will be complete by the end of fiscal 2021 and result in annualized pre-tax savings of $180 million to $200 million. Ralph Lauren did not provide guidance due to uncertainty from the coronavirus pandemic. Ralph Lauren stock has slumped 36.6% for the year to date while the S&P 500 index is up 1.3% for the period.
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