On November 7, Ralph Lauren Corporation announced that its second-quarter revenue for FY2025 grew by 6% year-over-year, surpassing expectations.
The growth was driven by strong expansion in the direct-to-consumer business in Asia and Europe, alongside a successful brand loyalty strategy. In response, the company raised its full-year revenue forecast from the previous growth range of 2-3% to 3-4% and indicated an increase in adjusted operating margin. Following the announcement, the stock rose by 6% in early trading.
Ralph Lauren, Executive Chairman and Chief Creative Officer, stated, “A spirit of optimism and the easy elegance of timeless style — these are elements that have come to define our brand. This summer was a celebration of all that we cherish, and as we turn our focus to holiday, we will continue inspiring people around the world to come together and step into their dreams.”
Patrice Louvet, President and CEO, added, “Our strong business performance across every geography this quarter underscores the resilience of our diversified growth drivers and our elevated consumer base, giving us confidence to take up our financial outlook for the full fiscal year ahead of the all-important holiday season.”
In the second quarter, Ralph Lauren expanded its presence in key global cities, opening 25 new stores, including locations in Tulsa, Oklahoma; Giverny, France; and Shenzhen, China. The direct-to-consumer channel achieved 10% growth year-over-year, successfully attracting new customers in North America, Europe, and China. Additionally, sponsorships for global events like the 2024 Paris Olympics, Wimbledon, and the US Open have significantly boosted brand recognition.
Regionally, Asia saw 9% growth, and Europe posted a 7% increase in revenue. North America recorded a 3% year-over-year growth in the direct-to-consumer channel, offsetting planned declines in wholesale.
On the financial front, the company maintained a stable foundation, with $1.7 billion in cash and short-term investments and $1.1 billion in total debt at the end of Q2. Strategic inventory management has positioned Ralph Lauren well for the upcoming holiday season.
Ralph Lauren remains committed to its “Next Great Chapter” strategy, aiming to strengthen its value as a lifestyle brand and drive further growth in global markets. Sales growth of 3-4% is anticipated for Q3 and beyond, with expectations high for performance during the holiday season and beyond.