Ralph Lauren has exceeded expectations for quarterly revenue, showcasing the enduring appeal of its premium shirts and sweaters among a younger, affluent U.S. clientele. This positive performance signals strength heading into the pivotal holiday season.
Shares of the company surged 6% pre-market, reflecting confidence in Ralph Lauren’s resilience within the luxury retail sector. The brand’s iconic cable-knit jumpers, Polo shirts, and dresses continue to attract shoppers, setting it apart in a market experiencing a broader luxury industry slowdown in the United States.
Ralph Lauren strategically utilized both its online platform and physical stores to stimulate demand, emphasizing its direct-to-consumer business. This approach stands out as global brands grapple with weakened wholesale revenues, with retailers cautious in their product orders for the upcoming holiday season.
For the fiscal second quarter, net revenue rose to $1.63 billion, surpassing the $1.58 billion reported a year earlier. This result exceeded analysts’ average forecast of a more modest increase to $1.61 billion, according to data from the London Stock Exchange Group.
While maintaining its annual sales forecast, Ralph Lauren projected third-quarter revenue to rise approximately 1% to 2%. This projection, slightly below analysts’ average estimate of a 3.8% increase to $1.90 billion, reflects the brand’s cautious outlook in the current market landscape. Ralph Lauren’s strong performance positions it as a standout in the competitive luxury retail landscape, poised for continued success.
