Ralph Lauren Corp (RL) on Thursday projected a sharper-than-anticipated decrease in its fourth-quarter revenue, as it cited new lockdowns in key markets such as Europe and Japan.
The company said that it forecast a mid-to-high single-digit drop in its revenue for the fourth quarter of fiscal 2021, while a consensus of analyst estimates had pointed to a 2.9% decrease.
The high-end apparel maker also noted that its current outlook could be adversely affected in case government-mandated lockdowns or restrictive measures are extended.
Ralph Lauren shares closed higher for a fourth consecutive trading session in New York on Thursday. It has also been the sharpest single-session gain since January 28th. The stock went up 2.51% ($2.64) to $107.83, after touching an intraday high at $109.32, or a price level not seen since January 26th ($110.44).
Shares of Ralph Lauren Corp have risen 3.94% so far in 2021 compared with a 3.08% gain for the benchmark index, S&P 500 (SPX).
In 2020, Ralph Lauren’s stock went down 11.50%, thus, it underperformed the S&P 500, which registered a 16.26% gain.
Ralph Lauren reported an 18.2% year-on-year drop in its net revenue to $1.43 billion during the fiscal third quarter, which fell short of market expectations of $1.47 billion.
The company’s adjusted net income shrank 42% year-on-year to $125 million ($1.67 per share) during the quarter ended on December 26th, but it outstripped a consensus of estimates of $1.63 per share.
Earlier this week, Ralph Lauren said that it would seek further cost cuts during its fiscal year 2021 by consolidating its corporate offices and re-negotiating store rents.
The apparel maker had previously said it planned to reduce its global workforce by 15% by the end of the current fiscal year.
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