By Christiana Sciaudone
Investing.com -- In times of athleisure, is there room for Ralph Lauren (NYSE:RL) Polo shirts? Second quarter earnings results say no.
Ralph Lauren shares dropped 7.4% after the apparel maker reported a 66% sales slump for the fiscal first quarter, with North America hit the hardest, seeing a 77% decline to $165 million. European sales dropped 67%, and Asia dropped 34%.
Ralph Lauren has four buy ratings, seven holds and one sell, according to data compiled by Investing.com.
Despite the news that consumers are turning away from the country club style of Ralph Lauren, Needham analyst Rick Patel reiterated his buy rating on Monday, setting a price target of $90. Shares are trading under $65, which is the lowest price target of analysts surveyed by Briefing.com. The average price target is $84.85.
Patel said Ralph Lauren should post a loss per share of $3.38 for the fiscal second quarter.
"We continue to expect our financial results for both the second quarter and full year fiscal 2021 to be significantly adversely impacted by the pandemic and prolonged demand recovery," the company said in a statement.
Ralph Lauren said it's trying to "win over" a new generation of consumers, and noted that Home and Loungewear are "emerging as high potential, under-developed lifestyle categories."