Ralph Lauren Struggling to Sell Slacks in Europe
It was revealed on Tuesday that Ralph Lauren (NYSE: RL) has reported a higher-than-expected quarterly profit thanks to impressive sales, but the company is warning that the growth won't continue at this pace because of Europe's poor economy.
RL, which saw a 20% rise in 2011, is expecting a more modest single digit rise in revenue this year. That won't look good for the company which is already under pressure as it looks to gain more control of its China operations. The company is hoping to open up 60 new stores in China over the course of the next three years.
Ralph Lauren's net income went up to $94.4 million, or 99 cents per share, from $73.2 million, or 74 cents per share, the previous year. Meanwhile, revenue rose 13.7% to $1.62 billion.
It is the numbers coming out of Europe which is seriously concerning the company, and Chief Operating Officer Roger Farah, who recently said, "we are concerned about near-term global economic trends, especially the uncertainty in Europe.'
Still, with the company still making the majority of its sales on North American it should be ok.
Follow me .
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.