Ralph Lauren (NYSE:RL) beat first-quarter earnings expectations and raised its full-year margin outlook, driven by cost controls and favorable currency impacts, though shares fell 8% intra-day.

The company posted earnings of $3.52 per share for the quarter ended June 29, ahead of the $3.45 consensus estimate. Revenue grew 6% year-over-year to $1.7 billion, topping the $1.65 billion forecast.

Ralph Lauren now expects full-year operating margin to expand by 40 to 60 basis points in constant currency, up from its previous estimate. Foreign exchange is expected to contribute a 40 basis-point tailwind.

Annual revenue is projected to rise in the low- to mid-single digits on a constant currency basis, with currency expected to add 150 to 200 basis points.

For the second quarter, the company guided for high-single-digit revenue growth in constant currency, aided by up to 150 basis points from FX. Operating margin is forecast to rise 120 to 160 basis points, supported by lower operating expenses and modest currency benefits.