Ask Matt: Is Ralph Lauren out of style?

Q: Is Ralph Lauren out of style? 

A: Ralph Lauren (RL) shares are getting tossed out to the curb. The company's murky outlook about the future makes it a tough sell with investors.

Shares of the apparel designer dropped more than 20% Thursday to about $90 a share after reporting quarterly revenue of $1.9 billion, which missed expectations by 4%, says S&P Capital IQ. The company's adjusted quarterly profit of $2.27 a share beat expectations, but it's important to note profit was down nearly 6% from the same period a year ago.

What investors are most worried about, though, is the company's cautious outlook. The company told investors revenue in the current quarter would likely be as low as $1.85 billion, which is down about 1% from the same period a year ago. Shares of Ralph Lauren have dropped 17% over the past year.

Analysts think the company can get its growth back - but it's going to take time. Revenue in fiscal 2016 is expected to drop 1%, but analysts are calling for 2.2% growth in fiscal 2017. Investors will need to be patient with the company as it clears out inventory and resets. Wall Street analysts think the stock is a compelling value, even though it's trading for 18 times trailing earnings, which is slightly more expensive than the market. Analysts have an 18-month price target on the stock of $131.40, which would be 46% potential upside.

Paste BN markets reporter Matt Krantz answers a different reader question every weekday. To submit a question, e-mail Matt at mkrantz@usatoday.com or on Twitter @mattkrantz.