Ralph Lauren raises annual forecasts on resilient luxury demand
RL•Ralph Lauren raised its fiscal 2027 revenue growth forecast to 6% to 7% and its annual operating margin growth forecast to 80 to 100 basis points. Quarterly revenue rose 9% to $2.19 billion, above analysts’ $2.12 billion estimate.
1. Higher annual outlook
Ralph Lauren raised its fiscal 2027 revenue growth forecast to the mid- to high-single-digit range, centered around 6% to 7%, from its prior forecast centered around 5% to 6%. It now expects annual operating margin to grow 80 to 100 basis points on a constant-currency basis, compared with its previous forecast of 60 to 80 basis points.
2. Revenue and demand
Quarterly revenue rose 9% to $2.19 billion, above analysts’ estimate of $2.12 billion. The company said strong demand from younger shoppers in North America and Asia is helping it buck a broader luxury slowdown; revenue in China rose 35% in the second quarter.
3. Turnaround strategy
Ralph Lauren has improved sales by focusing more on higher-priced apparel and updating its product range. It launched a turnaround plan about a decade ago, when it hired its first outside CEO.
