By  on November 7, 2007

As Polo Ralph Lauren posted a decline in second-quarter profits, which were impacted by acquisition costs, the company lowered its full-year earnings-per-share estimate on weak economic prospects in the U.S. market.

For the quarter ended Sept. 29, the company’s net income dropped 16 percent to $115 million, or $1.09 a share, from $137 million, or $1.28 a share, as sales soared 11 percent to $1.3 billion. The bottom line was impacted by recent acquisitions, which included a subbrand in Japan, as well as a “non-cash amortization of $20 million.” The second quarter EPS was ahead of Wall Street analyst estimates by 6 cents.

Polo dropped its full-year EPS forecast to a range of $3.50 to $3.60 from a prior range of $3.64 to $3.74. “Given the current macroeconomic challenges in the U.S., the company thought is was prudent to recalibrate expectations for the back half of this fiscal year with a more cautious view on sales and margins for its domestic operations,” the company said in a statement.

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