Third-Quarter Results Signal Recovery For North American Wholesale
Ralph Lauren raised its revenue forecast on Thursday, predicting a 6 to 7 percent jump for the 2025 fiscal year, an upgrade from the previous 3 to 4 percent range. This announcement came alongside a 15 percent surge in the company’s shares, propelled by robust demand for its new spring collection among younger consumers in North America.
The label’s wholesale business in North America reported a 6 percent growth in third-quarter revenue, indicating a turnaround after several quarters of slower sales. This increase stands in contrast to weaker performances at some European fashion houses, with Ralph Lauren citing successful investments in brands such as Polo and Purple Label.
“With regards to the recently announced U.S. tariffs on goods from China, Mexico, and Canada, we currently anticipate a minimal annual impact,” Chief Financial Officer Justin Picicci said in a post-earnings call.
Quarterly sales climbed 10.8 percent to $2.14 billion, outperforming analysts’ estimates of $2.01 billion, according to data from LSEG. Excluding certain items, Ralph Lauren earned $4.82 per share, above the $4.49 forecast.
In addition to its North American recovery, Ralph Lauren recorded a 20 percent rise in China revenues, driven by e-commerce on Douyin and new full-price store openings. The Chinese market represents about 8 percent of the brand’s total sales.