Ralph Lauren Corp. reported a drop in its fiscal first-quarter profits, which comes as a huge disappointment for the high-end clothing company. According to The Wall Street Journal, the company’s earnings fell just over 10 percent due to a continuation of expansion costs.
Even with revenue growth, however, Ralph Lauren still fell short because of expenses from other areas. The Associated Press found that the company’s profits fell $162 million from $181 million, equivalent to $1.80 per share, which actually exceeded analysts’ expectations of $1.75 per share.
“Our better-than-expected first quarter profitability reflects excellent progress on our strategic initiatives, including double-digit revenue growth for our international and global e-commerce operations,” said President and Chief Operating Officer Jacki Nemerov, according to RTT News.
The company is expecting to raise revenue sales in the next bit, which is due in part to the projected opening of a 20,000-square-foot Ralph Lauren store in China. According to The Wall Street Journal, Ralph Lauren’s Chairman and Chief Executive called the opening “critical.” The first flagship Polo store will also make its debut in New York City closer to the end of the month, which should bring in substantial earnings as well.
Now directing its attention to the next fiscal quarter, the company is aiming for an increase from 4-6 percent of net revenue, according to RTT News. Revenue growth is anticipated to expand from 6-8 percent for 2015 as well.
“We are making the right strategic decisions and investments to support our long-term growth objectives,” said CEO Ralph Lauren, according to RTT News.
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