Ralph Lauren's quarterly results beat estimates on steady demand
(Reuters) -Ralph Lauren surpassed fourth-quarter revenue and profit estimates on Thursday, helped by resilient demand for its classic Polo shirts and spring dresses, sending its shares up 3% in premarket trading.
Its investments into brands including Polo and Purple Label, paired with stylish seasonal drops, have been helping the company win over younger and less price-sensitive shoppers.
Ralph Lauren has also stepped up its marketing initiatives with campaigns including Summer Sports and the Hamptons fashion event, to help boost consumer engagement.
However, it forecast annual revenue below estimates owing to pressures from uncertainty around U.S. tariffs.
Ralph Lauren is among the retailers and luxury brands facing the brunt of unpredictable U.S. tariff shifts that have disrupted businesses and rattled shoppers worldwide.
In fiscal 2024, the company sourced about 96% of its products from outside the U.S., with 15% coming from China, according to its annual filings.
China is also a major market for Ralph Lauren products.
While the recent 90-day trade truce between Washington and Beijing cut U.S. tariffs on China to 30% from an eye-watering 145%, the relief is expected to be brief for China's export-reliant economy.
Additionally, mounting pressure from a deepening property crisis in China and climbing unemployment has also clouded hopes for a strong economic rebound.
Ralph Lauren expects fiscal 2026 revenue to increase in the low-single digits from last year, including the impact of tariffs, inflationary pressures and spending challenges. Analysts estimate a rise of 4.39%, per data compiled by LSEG.
The company posted quarterly revenue of $1.70 billion, compared with estimates of $1.65 billion.
It earned an adjusted profit of $2.27 per share, beating estimates of $2.
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