Ralph Lauren Corporation (RL – Analyst Report), a designer, marketer and distributor of lifestyle products, released better-than-expected third-quarter fiscal 2016 results, wherein adjusted earnings of $2.27 a share beat Zacks Consensus Estimate of $2.11 but declined 5.8% from $2.41 earned in the year-ago quarter. On a currency-neutral basis, earnings jumped 4%. Reported earnings came in at $1.54 per share.

Ralph Lauren lowered its forecast for fiscal 2016, anticipating constant-currency revenue growth of 1% compared with 3%-5% expected earlier. This will include an anticipated 400 bps negative impact from foreign currency translations. Further, the company expects reported revenue to be down 3% versus flat revenues projected earlier. For the fourth quarter, the company projects reported revenue in a flat to 2% increase range. Currency headwinds are expected to impact sales by nearly 150 bps.

Earnings Estimate Revision: The Zacks Consensus Estimate for fiscal 2016 portrays a downtrend in the last 30 days. However, Ralph Lauren’s performance over the trailing four quarters, including the quarter under review, remains encouraging with an average beat of 7.7%.

Revenues: Ralph Lauren’s net revenues slipped 4.3% year over year to $1,946 million and was short of the Zacks Consensus Estimate of $2,043 million. On a currency-neutral basis, net sales fell 1%, primarily due to decline in North American revenue and negative currency impacts, offset by robust international revenues.

Zacks Rank: Currently, Ralph Lauren carries a Zacks Rank #3 (Hold) which is subject to change following the earnings announcement.

Stock Movement: Ralph Lauren’s shares dipped nearly 9.1% during pre-market trading hours following the earnings release. Investors developed a negative sentiment based on the dismal sales results and lowered sales outlook for fiscal 2016.