Ralph Lauren starts new financial year with strong growth

US fashion group Ralph Lauren Corporation (Ralph Lauren) achieved unexpectedly strong growth in sales and earnings in the first quarter of the 2025/26 financial year. As a result, the company raised its forecasts for the full year on Thursday.

In the first quarter, which ended on June 28, group revenue reached 1.72 billion dollars. This exceeded the corresponding prior-year figure by 13.7 percent. Adjusted for exchange rate changes, revenue increased by 11.4 percent.

Sales growth across all regions

The company achieved solid growth in all geographical regions. In North America, quarterly revenue increased by 7.9 percent to 656 million dollars. In Europe, revenue increased by 15.7 percent (currency-adjusted +10.3 percent) to 555 million dollars. In Asia, revenue increased by 21.2 percent (currency-adjusted +18.9 percent) to 474 million dollars.

Thanks to the increase in revenue and a higher gross margin, operating profit grew by 31 percent to 273.6 million dollars compared to the same period last year. Net profit also increased by 31 percent, reaching 220.4 million dollars.

Management raises annual forecasts

CEO Patrice Louvet was pleased with the current figures. “We delivered strong first quarter results across all regions, channels and consumer segments,” he said in a statement. “While we remain cautious about the current global business environment, we are encouraged by the broad-based strength of our brand and our business segments and will continue to focus on our long-term strategic priorities.”

These aim, among other things, to win new and younger target groups and to strengthen both established and particularly high-growth categories, Louvet said.

Following the recent surprisingly strong performance, management set higher targets for the full financial year. It now expects currency-adjusted revenue growth of a low to mid-single-digit percentage. Previously, only a low single-digit growth rate had been expected. In addition, the group now anticipates a stronger increase in the operating margin.

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