Luxury fashion company Ralph Lauren Corp (NYSE: RL) reported a better-than-expected profit on a quarterly basis on Tuesday, thanks to rising demand in international markets, but lower sales in its largest market, North America, frustrated buyers.
Same-store sales in North America tumbled for six consecutive quarters in the last two years, losing 4% in the Q1 through March 30.
“We still have more work to do (in North America),” Patrice Louvet, CEO, said in a post-earnings call with analysts.
Ralph Lauren’s shares gave up 8.2% to $108.54 in the late morning session.
The stock has been having a hard time due to intensifying tariff war with China, from where the company gets a third of its raw materials, as stated in its annual filing.
“We have accelerated the diversification of our supply chain to mitigate the long-term impact of any potential tariff outcomes,” CEO Jane Nielsen said.