• Q2 down 8% to $214m
  • H1 profit edged down 2.5% to $407.1m
  • Revenue during H1 slipped 0.7% to $3.5m

Luxury apparel and accessories business Ralph Lauren Corp has today (2 November) lowered its full-year sales guidance after second-quarter profit slipped 8%.

Net income fell to US$214m during the three months ended 29 September, while first-half profit slipped 2.5% to $407.1m.

Net revenues fell 2% to $1.9bn during the quarter, which the company said was due to a planned contraction in wholesale shipments, partially offset by continued retail expansion. Comparable store sales increased 5%. Revenues for the first six months of the year edged down 0.7% to $3.5m.

However, gross profit margin improved 220 basis points to 58.8% in the quarter, driven by lower input costs, beneficial channel mix and operational discipline.

"Our year-to-date results affirm the tremendous resilience of our business," said CEO and chairman Ralph Lauren. "We continue to make excellent progress on our long-term growth objectives as we invest along many dimensions, including new stores and e-commerce platforms and emerging merchandise categories and regions.

"Our clarity of vision and purpose has us focused on the most compelling opportunities that we believe will create significant shareholder value over the long term."

The company now expects full-year net revenue to increase 2% to 3%, compared to its previous guidance for mid-single-digit revenue growth.