Ralph Lauren has revised its annual sales forecast upwards as the winter and holiday collections catch on. The fashion house expects strong seasonal sales.
Shoppers do not flinch
In the second quarter of the broken financial year, sales rose 6% to 1.73 billion dollars ( some 1.6 billion euros), beating analysts’ expectations. Earnings per share came to 2.54 dollars (2.36 euros) on an adjusted basis, up 21% compared to last year.
Notable is the strong performance in China, where Ralph Lauren is less affected by the slowdown in the luxury sector than competitors. The US luxury brand is benefiting from continued buying appetite among higher value customers, who are not deterred by price increases. The company saw increased demand in all geographical regions:
- North America: +3% to 739 million dollars (687 million euros)
- Europe: +7% to 566 million dollars (526 million euros)
- Asia: +9% to 380 million dollars (353 million euros)
Momentum towards holidays
CEO Patrice Louvet stresses that the company has momentum towards the crucial holiday season. Ralph Lauren’s strategy of higher prices and fewer promotions seems to be paying off. The average selling price rose 10% and gross margin improved 160 basis points to 67%.
For the full 2025 financial year, Ralph Lauren now expects sales growth of 3% to 4%, up from its previous forecast of 2% to 3%. The company forecasts further improvement in operating margin by 110 to 130 basis points.
