Shares in Ralph Lauren, the retailer best known for its preppy Polo brand and classic Americana, declined 17.3 per cent to $95.66 on Thursday. If the shares close at this level, this would make it the stock’s second worst single day performance since the company went public in 1997.
The shares were down by as much as 18.7 per cent at one point on Thursday. Were the shares to end at this level, that would mark the stock’s biggest one day decline ever.
Investors soured on the retailer after it lowered its full-year sales forecast and reported a decline in third-quarter profit and sales. Ralph Lauren sales have sagged as the chain faces increasing competition from fast fashion retailers like Zara and H&M and as the strong dollar hurts both purchases by tourists in the US and its overseas earnings.