Ralph Lauren Shares Slide 10% Premarket As CEO Leaves, Warns Of Charges

Ralph Lauren Corp. shares slid 10% in premarket trade Thursday, after the company said its chief executive is leaving and warned of charges to cover a restructuring program. The designer apparel brand had net income of $82 million, or 98 cents a share, in its fiscal third quarter, down from $131 million, or $1.54 a share, in the year-earlier period. Adjusted per share earnings came to $1.86 a share, ahead of the FactSet consensus of $1.64. Revenue came to $1.7 billion, down 12% from the year-earlier quarter, to match the FactSet consensus. Chief Executive Stefan Larsson said he has mutually agreed with the company to part ways, after about 15 months in the role. Larsson will stay on until May 1, while a search for a replacement is carried out. CFO Jane Nielsen will lead the company's Way Forward plan in the interim, which aims to achieve $180 million to $220 million of annualized savings. The company is still expecting fiscal 2017 revenue to decline at a low-double digit rate. It expects operating margins of about 10% as cost savings kick in. For the fourth quarter, the company is expecting revenue to be down in the mid-teens. It expects to book restructuring charges of about $400 million and a $150 million inventory charge. Shares have fallen 22% in the last 12 months, while the S&P 500 has lost 20%.