Ralph Lauren Considers Raising Prices Since Tariffs are Hurting its Sales Projectio
The Trump administration's increased tariffs have prompted Ralph Lauren Corporation (NYSE:RL) to warn of limited sales growth for fiscal 2026 and to explore more price increases.
A man and woman in business attire walking down a street, bags of clothing in hand.
According to CEO Patrice Louvet, the company is "assessing additional pricing actions for full-year 2025 and spring of 2026" to counteract cost constraints brought on by tariffs.
Notwithstanding these difficulties, Ralph Lauren Corporation (NYSE:RL) reported revenue of $1.70 billion and adjusted earnings of $2.27 per share, exceeding Q4 projections and boosting shares by 2% in early trading. Nevertheless, the business now expects revenue growth in the low single digits, which is less than the 4.39% LSEG analyst average.
In the second half of the year, Ralph Lauren Corporation (NYSE:RL)'s gross margins are expected to be impacted by high tariffs that affect input costs and customer spending. The business has already raised prices in Asia and North America, and if tariffs continue, it plans to raise them even more. CEO Louvet stressed taking preventative measures to safeguard profitability in the face of changing trade conditions.
Geopolitical unpredictability and waning global consumer mood, according to analysts like Sky Canaves of eMarketer, might make American heritage goods less appealing elsewhere. To maintain demand, Ralph Lauren Corporation (NYSE:RL) still relies on branding initiatives, including marketing campaigns and investments in Polo and Purple Label.
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