Ralph Lauren Shares Tumble After Company Cuts Annual Forecast

NEW YORK, United States — Ralph Lauren Corp., the apparel company known for preppy fashions, fell as much as 13 percent in early trading after cutting its annual forecast.

Revenue will only be up about 1 percent this year, excluding the effects of currency moves, the New York-based company said in a statement on Thursday. It had previously predicted growth of 3 percent to 5 percent.

The outlook shows the challenges facing Chief Executive Officer Stefan Larsson, a former Gap Inc. executive who succeeded founder Ralph Lauren in November. Traffic has been sluggish at malls and department stores, and the strong U.S. dollar is eroding the company's foreign revenue.

The shares fell as low as $100.75 in premarket trading on Thursday. That follows a 40 percent decline in 2015, a year when apparel companies were battered by investors.

Ralph Lauren is in the middle of a reorganization effort that will cut $110 million in annual costs by the end of fiscal 2017. As part of the changes, the company is reducing product count to keep inventory low.

“While our recent results have been disappointing, I am greatly encouraged by the changes that are already taking place since the appointment of Stefan Larsson,” Lauren, 76, said in the statement.

By Lindsey Rupp; editors: Nick Turner, Mark Schoifet.