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Ralph Lauren Reports Record International Growth, Warns of North American Slowdown

The luxury retailer exceeded Q4 expectations with a 42% profit surge and 8% annual growth but forecasts modest gains for fiscal 2026 due to tariffs and weakening consumer sentiment.

A person looks at a shop window branded by Ralph Lauren at the department store Kaufhaus des Westens "KaDeWe" during Christmas season in Berlin, Germany, December 18, 2023.  REUTERS/Lisi Niesner/File Photo
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Guests wait after viewing the latest Ralph Lauren collection in New York City, U.S., April 17, 2025.

Overview

  • Ralph Lauren achieved an 8% revenue increase for fiscal 2025, reaching $7.1 billion, driven by strong international sales in Europe, Asia, and China.
  • Fourth-quarter revenues rose 8.3%, with net income up 42%, surpassing analyst expectations for both metrics.
  • International markets now represent the majority of Ralph Lauren's profits, with Q4 sales in Europe up 16%, Asia up 13%, and China exceeding 20% growth.
  • The company forecasts low-single-digit revenue growth for fiscal 2026, with North America expected to decline by low- to mid-single digits while Asia and Europe continue to grow.
  • To offset tariff pressures, Ralph Lauren plans additional price increases for fall 2025 and spring 2026, relying on its pricing power and high-end consumer demand.