Designer clothing brand Ralph Lauren has raised its fiscal 2026 guidance after delivering better-than-expected second-quarter results.
Sales for the brand rose by 14% year-over-year to US$2 billion, surpassing its high-single-digit outlook with growth driven by strong performance across all markets, including China. This also beat analysts' expectations of US$1.89 billion.
Ralph Lauren saw sales increases in double digits across all geographies, with Asia growing by 16%, with China experiencing a 30% rise on its own, Europe by 15% and North America by 13%.
"Our iconic brand and timeless products continue to resonate with consumers around the world, across generations and cultures, and we are reinforcing our inclusive luxury lifestyle position with disciplined investments to drive sustainable long-term growth and value creation well beyond this fiscal year,” president and CEO Patrice Louvet said.
The company joined the likes of LVMH, L’Oreal, Hermes and Estee Lauder in reporting improved sales in China, signalling hope in one of luxury fashion's biggest markets.
Ralph Lauren’s positive sales increased due to lower promotions and cotton costs, and price hikes to counter higher tariffs and non-material cotton costs.
The company also said its sponsorships, like the U.S. Open and being included in celebrity style-defining moments, like Taylor Swift’s engagement and Selena Gomez’s wedding, helped drive sales.
In September, it also announced its latest strategy, Next Great Chapter: Drive, which focuses on three pillars: elevate and energise the brand’s positioning to propel new customer acquisition and retention, drive core products while expanding into new categories, and win in 30 top cities while developing across 20 geographical targets.
Following the positive earnings results, the company has increased its full-year guidance.
The company now expects revenues to increase by 5% to 7% on a constant currency basis.
