Ralph Lauren surprises with strong annual results

US fashion group Ralph Lauren Corporation exceeded expectations in the financial year 2024/25, thanks to a strong final quarter. On Thursday, the company reported surprisingly significant increases in sales and earnings.

Increases in all market regions drive a 7 percent increase in sales

In the most recent financial year, which ended on March 29, sales reached 7.08 billion dollars and exceeded the previous year's level by 7 percent. Adjusted for exchange rate changes, revenues increased by 8 percent.

The surprisingly significant increase was thanks to solid gains in all market regions. In North America, sales rose by 3 percent to 3.05 billion dollars, in Europe by 11 percent to 2.17 billion dollars, and in Asia by nine percent to 1.71 billion dollars.

Net profit increases by 15 percent

Thanks to a higher gross margin and lower one-off charges, operating profit increased by 23 percent to 932.1 million dollars. Net profit reached 742.9 million dollars and exceeded the previous year's level by 15 percent.

In the fourth quarter, the results also exceeded expectations. Sales grew by 8 percent compared to the same period last year (currency-adjusted plus 10 percent) to almost 1.70 billion dollars, and net profit jumped by 42 percent to 129.0 million dollars.

Numerous uncertainties: management only issues preliminary forecasts

When looking ahead to the current financial year 2025/26, management was cautious in view of numerous political and economic uncertainties and only published preliminary forecasts. Currency-adjusted sales growth of a low single-digit percentage is currently expected. The operating margin is expected to increase slightly on a currency-adjusted basis.