Ralph Lauren said its reduced wholesale shipments to Europe and a tax cost drove its fiscal second-quarter net income down by 8%.
It also lowered its revenue expectations for the year amid a global slowdown.
But the luxury fashion company's second-quarter results topped analysts' expectations.
The owner of the Ralph Lauren Collection and Polo by Ralph Lauren brands sells its products at department stores, its own shops and through other retailers.
Ralph Lauren said its net income for the three months ended September 29 fell to $213.7m, or $2.29 per share. That compares with $233.5m, or $2.46 per share, last year. Analysts had expected $2.15 per share.
Revenue fell 2% to $1.86 billion. Analysts expected $1.83 billion. A planned reduction in wholesale shipments to some European stores hurt revenue.
Ralph Lauren said today that it plans to discontinue its Rugby brand to focus on more profitable brands.
The company said that sales to its department stores and other store customers fell to $915m, down 8% on the same time last year, hurt by planned reductions in shipments to certain European specialty stores.
The company's business has been hurt by the phasing out of its American Living brand, which had been exclusively carried by mid-price department store chain JC Penney. Sales at its own stores rose 5% to $901m.
Revenue at stores opened at least a year rose 3% and was up 5% in constant currency. The increase was fueled by new stores and e-commerce operations that was partially offset by stores closures related to its move to phase out stores operated by local partners in China. It aims to replace those outlets with company-owned shops.
Ralph Lauren also lowered sales expectations for fiscal 2013 to 2-3%t growth, from a prior forecast of mid-single digit growth.
"Macroeconomic conditions lead us to be incrementally more cautious on near-term customer demand trends worldwide," said Roger Farah, Ralph Lauren's president and chief operating officer in a statement.
