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Fashion Network
07-08-2025
- Business
- Fashion Network
Ralph Lauren lifts revenue view, warning on margin pressure weighs on shares
raised its annual revenue forecast on Thursday on higher demand for its Polo shirts and cable-knit sweaters in North America, but said tariff pressure on its margins will ramp up in the back half of the year. Brand CEO Patrice Louvet said the company remains cautious about the global operating environment in the back half. Shares of the company were down 6%. "We need to really see how consumers respond to the start of the fall holiday season in what will be an uncertain and potentially inflationary environment," he said. Ralph Lauren, which sells its popular Polo Bear sweater for up to $398 on its website, has relied on its loyal, high-income customers to fuel sales and profit growth. The company's strategy to ramp up marketing spend and product innovation, as well as reduce promotions have helped it gain market share in its core categories such as knitwear and handbags. "Our high potential categories, including women's apparel, outerwear and handbags, continue to be accelerators for our business," Louvet said. He said highlights include the Cable-Knit jersey and Polo Bear sweaters, linen shirts, dresses, the Cotton Canvas city jacket, and a handbag collection launched earlier this spring called "Polo Play." The company's strong quarter underlines consumer preference for accessible luxury brands, similar to Tapestry, which has seen solid demand for its Coach handbags. Tapestry will report quarterly earnings next week. Ralph Lauren's upbeat forecast, however, is in contrast to bigger European rivals such as Gucci -owner Kering and Dior -parent LVMH, which have seen a sales slowdown. The company expects fiscal 2026 revenue to rise low- to mid-single digits from last year, compared with its prior target of a low-single digits increase. Operating margin is forecast to expand roughly 40-60 basis points after adjusting for currency fluctuations, up from its prior forecast of a modest growth. Its net revenue in the first quarter came in at $1.72 billion, exceeding expectations of $1.66 billion, according to data compiled by LSEG. On an adjusted basis, it earned $3.77 per share, above estimates of $3.50, aided by a 14% jump in average unit retail in its direct-to-consumer channel. © Thomson Reuters 2025 All rights reserved.
Fashion Network
07-08-2025
- Business
- Fashion Network
Ralph Lauren lifts revenue view, warning on margin pressure weighs on shares
raised its annual revenue forecast on Thursday on higher demand for its Polo shirts and cable-knit sweaters in North America, but said tariff pressure on its margins will ramp up in the back half of the year. Brand CEO Patrice Louvet said the company remains cautious about the global operating environment in the back half. Shares of the company were down 6%. "We need to really see how consumers respond to the start of the fall holiday season in what will be an uncertain and potentially inflationary environment," he said. Ralph Lauren, which sells its popular Polo Bear sweater for up to $398 on its website, has relied on its loyal, high-income customers to fuel sales and profit growth. The company's strategy to ramp up marketing spend and product innovation, as well as reduce promotions have helped it gain market share in its core categories such as knitwear and handbags. "Our high potential categories, including women's apparel, outerwear and handbags, continue to be accelerators for our business," Louvet said. He said highlights include the Cable-Knit jersey and Polo Bear sweaters, linen shirts, dresses, the Cotton Canvas city jacket, and a handbag collection launched earlier this spring called "Polo Play." The company's strong quarter underlines consumer preference for accessible luxury brands, similar to Tapestry, which has seen solid demand for its Coach handbags. Tapestry will report quarterly earnings next week. Ralph Lauren's upbeat forecast, however, is in contrast to bigger European rivals such as Gucci -owner Kering and Dior -parent LVMH, which have seen a sales slowdown. The company expects fiscal 2026 revenue to rise low- to mid-single digits from last year, compared with its prior target of a low-single digits increase. Operating margin is forecast to expand roughly 40-60 basis points after adjusting for currency fluctuations, up from its prior forecast of a modest growth. Its net revenue in the first quarter came in at $1.72 billion, exceeding expectations of $1.66 billion, according to data compiled by LSEG. On an adjusted basis, it earned $3.77 per share, above estimates of $3.50, aided by a 14% jump in average unit retail in its direct-to-consumer channel.
Fashion Network
07-08-2025
- Business
- Fashion Network
Ralph Lauren lifts revenue view, warning on margin pressure weighs on shares
raised its annual revenue forecast on Thursday on higher demand for its Polo shirts and cable-knit sweaters in North America, but said tariff pressure on its margins will ramp up in the back half of the year. Brand CEO Patrice Louvet said the company remains cautious about the global operating environment in the back half. Shares of the company were down 6%. "We need to really see how consumers respond to the start of the fall holiday season in what will be an uncertain and potentially inflationary environment," he said. Ralph Lauren, which sells its popular Polo Bear sweater for up to $398 on its website, has relied on its loyal, high-income customers to fuel sales and profit growth. The company's strategy to ramp up marketing spend and product innovation, as well as reduce promotions have helped it gain market share in its core categories such as knitwear and handbags. "Our high potential categories, including women's apparel, outerwear and handbags, continue to be accelerators for our business," Louvet said. He said highlights include the Cable-Knit jersey and Polo Bear sweaters, linen shirts, dresses, the Cotton Canvas city jacket, and a handbag collection launched earlier this spring called "Polo Play." The company's strong quarter underlines consumer preference for accessible luxury brands, similar to Tapestry, which has seen solid demand for its Coach handbags. Tapestry will report quarterly earnings next week. Ralph Lauren's upbeat forecast, however, is in contrast to bigger European rivals such as Gucci -owner Kering and Dior -parent LVMH, which have seen a sales slowdown. The company expects fiscal 2026 revenue to rise low- to mid-single digits from last year, compared with its prior target of a low-single digits increase. Operating margin is forecast to expand roughly 40-60 basis points after adjusting for currency fluctuations, up from its prior forecast of a modest growth. Its net revenue in the first quarter came in at $1.72 billion, exceeding expectations of $1.66 billion, according to data compiled by LSEG. On an adjusted basis, it earned $3.77 per share, above estimates of $3.50, aided by a 14% jump in average unit retail in its direct-to-consumer channel.
Reuters
07-08-2025
- Business
- Reuters
Ralph Lauren lifts revenue view, warning on margin pressure weighs on shares
Aug 7 (Reuters) - Ralph Lauren (RL.N), opens new tab raised its annual revenue forecast on Thursday on higher demand for its Polo shirts and cable-knit sweaters in North America, but said tariff pressure on its margins will ramp up in the back half of the year. CEO Patrice Louvet said the company remains cautious about the global operating environment in the back half. Shares of the company were down 6%. "We need to really see how consumers respond to the start of the fall holiday season in what will be an uncertain and potentially inflationary environment," he said. Ralph Lauren, which sells its popular Polo Bear sweater for up to $398 on its website, has relied on its loyal, high-income customers to fuel sales and profit growth. The company's strategy to ramp up marketing spend and product innovation, as well as reduce promotions have helped it gain market share in its core categories such as knitwear and handbags. "Our high potential categories, including women's apparel, outerwear and handbags, continue to be accelerators for our business," Louvet said. He said highlights include the Cable-Knit jersey and Polo Bear sweaters, linen shirts, dresses, the Cotton Canvas city jacket, and a handbag collection launched earlier this spring called "Polo Play." The company's strong quarter underlines consumer preference for accessible luxury brands, similar to Tapestry (TPR.N), opens new tab, which has seen solid demand for its Coach handbags. Tapestry will report quarterly earnings next week. Ralph Lauren's upbeat forecast, however, is in contrast to bigger European rivals such as Gucci-owner Kering ( opens new tab and Dior-parent LVMH ( opens new tab, which have seen a sales slowdown. The company expects fiscal 2026 revenue to rise low- to mid-single digits from last year, compared with its prior target of a low-single digits increase. Operating margin is forecast to expand roughly 40-60 basis points after adjusting for currency fluctuations, up from its prior forecast of a modest growth. Its net revenue in the first quarter came in at $1.72 billion, exceeding expectations of $1.66 billion, according to data compiled by LSEG. On an adjusted basis, it earned $3.77 per share, above estimates of $3.50, aided by a 14% jump in average unit retail in its direct-to-consumer channel.
