A plunge in Polo Ralph Lauren (NYSE: RL) shares on Wednesday after disappointing quarterly results provided a headwind for exchange traded funds tracking the consumer discretionary sector.
Polo Ralph Lauren said its fiscal fourth-quarter net income fell to $73 million from $114 million in the year-ago period. The stock was down more than 10% in premarket action Wednesday.
“Even though we face real sourcing cost pressure during the year and the impact of impending inflationary pressure on the consumer is unknown, our brands are strong and we have a culture of tremendous operational discipline,” said Roger Farah, the company’s chief operating officer, in the earnings release.
Polo Ralph Lauren is a minor holding in PowerShares Dynamic Consumer Discretionary (NYSEArca: PEZ) and Rydex S&P Equal Weight Consumer Discretionary (NYSEArca: RCD).
PowerShares Dynamic Consumer Discretionary
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