By Ananya Mariam Rajesh (Reuters) -Ralph Lauren raised its annual revenue forecast on Thursday as the apparel maker bet on younger shoppers picking up its spring collection of dresses, floral dinner jackets and Polo shirts, sending its shares up 15%. Unlike European fashion houses Hugo Boss and Kering, Ralph Lauren has enjoyed strong demand as […]
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Ralph Lauren’s dresses, Polo shirts drive sales forecast raise
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By Ananya Mariam Rajesh
(Reuters) -Ralph Lauren raised its annual revenue forecast on Thursday as the apparel maker bet on younger shoppers picking up its spring collection of dresses, floral dinner jackets and Polo shirts, sending its shares up 15%.
Unlike European fashion houses Hugo Boss and Kering, Ralph Lauren has enjoyed strong demand as its investments in brands such as Polo and Purple Label helped pull in wealthy shoppers, especially from the younger demographic in North America.
For the first time in the last couple of years, Louis Vuitton handbags owner LVMH had also hinted at seeing a stable U.S. consumer and said in January it was considering widening its footprint in the region.
Ralph Lauren’s wholesale business in North America recorded a 6% growth in third-quarter revenue, underscoring a recovery after several quarters of muted sales.
According to Dana Telsey of Telsey Advisory Group, Ralph Lauren has the right strategies in place, including elevating the brand and winning in key cities while expanding in under-penetrated categories to deliver topline growth.
The company now expects 2025 revenue to increase between 6% and 7%, compared with its prior forecast for a 3% to 4% rise.
“With regards to the recently announced U.S. tariffs on goods from China, Mexico, and Canada, we currently anticipate a minimal annual impact,” CFO Justin Picicci said in a post-earnings call.
Quarterly sales jumped 10.8% to $2.14 billion, trumping analysts’ estimates of $2.01 billion, according to data compiled by LSEG.
Excluding items, it earned $4.82 per share, beating expectations of $4.49.
Ralph Lauren has also recorded robust demand from China over the last two years, with revenue in the region up more than 20% in the quarter owing to e-commerce expansion on the Douyin platform and the opening of full-price stores.
China accounts for about 8% of the company’s total sales.
Tabby handbag maker Tapestry also reported on Thursday that strength in China and North America had helped lift its annual forecasts.
(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Devika Syamnath)