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(Bloomberg) — Ralph Lauren Corp. surged after it reported revenue and profit that beat analyst expectations, demonstrating the high-end apparel company’s momentum with consumers in the face of ongoing tariff uncertainty.
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The New York-based company said fourth-quarter revenue was $1.98 billion, beating the average analyst estimate compiled by Bloomberg. Adjusted earnings of $2.80 per share also exceeded expectations.
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Shares rose 10%, the most intraday since April 2025, at 10:18 a.m. in Thursday trading in New York. The stock has declined 6.9% for the year through Wednesday’s close.
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Sales growth was led by Asia, particularly China, which rose 31% on a reported basis during the period. Sales in Europe increased 18% on a reported basis and North America grew 8%. Shoppers snapped up the company’s goods at better-than-expected full-price rates, the company said in the statement.
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Ralph Lauren says its core customer is resilient and able to withstand tariffs and economic uncertainty. The company has capitalized on trends, including preppy looks and “quiet luxury,” while also making strategic investments in marketing.
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Across channels, including outlet stores, customers will see “more emphasis” on sweaters, outerwear and more space for handbags, Chief Executive Officer Patrice Louvet, said on the earnings call with analysts.
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“The combination of being accessibly premium with classic pieces is resonating with consumers,” wrote Neil Saunders, managing director at GlobalData.
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The retailer was also helped by lower cotton costs, while product mix, and geographic growth more than offset increased US tariffs.
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For fiscal 2027, Ralph Lauren expects North American revenue to grow roughly in the low-single digits, in line with the company’s long-term targets. Europe is expected to grow in the low-to-mid-single digits, taking into account higher energy costs and disruption in the Middle East, Chief Financial Officer Justin Picicci, said on the call with analysts.
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The “outlook reflects prudence around consumer demand as well as modest cost pressure related to recent energy price volatility,” Picicci said.
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Margin growth and operating margin expansion are expected to more than offset “increased pressure from freight and potential tariffs,” he added.
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—With assistance from Jonathan Roeder.
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(Adds executive comment from the earnings call starting in the sixth paragraph.)
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English (US)