Ralph Lauren Raises Annual Revenue Forecast on Strong Demand
Ralph Lauren has raised its annual revenue forecast on Thursday, citing strong demand for its spring collection and appeal to younger shoppers. The company's shares surged over 12% in premarket trading.
Unlike European rivals Hugo Boss and Kering, Ralph Lauren has maintained robust demand driven by investments in its Polo and Purple Label brands, capturing affluent shoppers, particularly younger consumers in North America.
notable in Ralph Lauren's performance is its 6% growth in wholesale revenue in North America in the third quarter, reversing a trend of muted sales. Direct-to-customer channels also remained strong, primarily through full-price sales.
The company now projects 2025 revenue to increase by 6-7%, surpassing its previous estimate of a 3-4% rise. Quarterly sales grew 10.8% to $2.14 billion, exceeding analysts' expectations of $2.01 billion, as per LSEG data.
Earnings per share, excluding special items, reached $4.82, surpassing estimates of $4.49.
Ralph Lauren's performance in China remains strong, with revenue in the region surging over 20% in the quarter due to e-commerce expansion on Douyin and new full-price stores attracting consumers. China now accounts for approximately 8% of the company's total sales.
Tapestry, the manufacturer of Tabby handbags, also reported on Thursday that its annual forecasts were lifted by strong performance in China and North America.