Ralph Lauren shares surged as its Q4 earnings beat revenue expectations on the back of strong sales in China, as affluent shoppers continue to buy from the high-end apparel brand.
Fourth quarter sales for the company were led by Asia, where they grew 31% on a reported basis. The company said this was driven by strong growth in China, driven by exceptional Lunar New Year sales.
Ralph Lauren, the company's executive chairman and chief creative officer, said the company’s presence at world events helped boost growth.
"From the passion and pursuit of greatness at the Olympics -- the world's biggest stage in sports -- to joyful traditions like Lunar New Year, we are bringing people together through timeless style that celebrates life’s meaningful moments,” he said.
The American label reported quarterly revenue of US$1.98 billion, surpassing analysts’ estimates of $1.85 billion.
For the fiscal year 2026, the luxury fashion brand’s revenue increased 15% to $8.1 billion.
"While navigating a highly dynamic global operating environment, we exceeded our financial commitments in Fiscal 2026 with revenues surpassing $8 billion for the first time on healthy quality of sales, with balanced contributions across our lifestyle categories, geographies, and channels — a testament to the power of our iconic brand and ability to connect authentically with consumers across generations and cultures,” president and CEO Patrice Louvet said.
Net income for Q4 was $152 million or $2.45 per share on a diluted basis.
The company expects revenue for fiscal 2027 to increase by mid-single digits.
While the company reported double-digit growth on a reported basis in Europe, falling tourism in the region caused by tension in the Middle East and strains on Europeans’ wallets could dampen results in the region this year.
At the time of writing, Ralph Lauren (NYSE: RL) shares soared by 13.87% to $374.90. Its market cap is $22.70 billion.
