Retail store owner Kohl’s and clothing maker Ralph Lauren are both down double digits in morning trading on Thursday after reporting disappointing earnings.
Ralph Lauren reported earnings per share (EPS) of $1.54, below the expectation for $2.13 per share. The company also projected lower profit margins for the quarter and year ahead.
The company’s new CEO Stefan Larsson said in the earnings release that he was “disappointed” in the financial performance, but was conducting an “extensive assessment into all aspects of the company.”
The stock fell about 16% to $95.56 per share.
Kohl’s had much the same trouble.
The company lowered its EPS guidance for 2015 to $3.95 to $4.00 from $4.40 to $4.60. It is expected to report full earnings on February 25.
Following the lowered forecast, the company traded down around 13% to about $44.47 per share.
These earnings releases come as two more disappointments in a wave of letdowns from the retail industry. Brick and mortar retailers have struggled with consumers’ shift to online shopping, and clothing makers have been combating mediocre sales, possibly due to warmer-than-usual weather.
Here’s a chart showing the drop in Kohl’s shares:
And in Ralph Lauren:
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