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Ralph Lauren’s full-year sales grew 8 per cent in 2025 to $7.1 billion, boosted by a strong fourth-quarter performance that saw sales jump 10 per cent, compared with the brand’s outlook of 6 to 7 per cent. Shares rose 2 per cent on Thursday in early trading following the earnings release.
The company achieved record revenues for its international business, which includes Europe and Asia, and now makes up the biggest portion of the company’s revenues and profits.
“As we close out this third and final year of our Accelerate [strategic growth] plan, we are proud to have delivered strongly on both our strategic and financial commitments. Our achievements this fiscal year embody so much of what Ralph Lauren stands for as one of the most beloved iconic brands in the world,” CEO Patrice Louvet said on a call with investors. “As Ralph would say, it’s never been just about a tie or a polo shirt or a sweater; it’s about the values that are so authentic to us — quality, effortless style, time well spent together with family and friends, stepping into our dreams. This year’s performance clearly demonstrates the growing desirability of our brand, which remains our most powerful asset and is resonating with consumers around the world.”
Ralph Lauren has reaped the rewards of a brand-elevation strategy, while others (such as Burberry or Ferragamo) have struggled to push upmarket. The company has reduced discounts, improved its pricing power and kept a laser focus on its core products (Louvet said that the brand’s portfolio now comprises 70 per cent core products that “perform across economic cycles”), while making headway in the women’s ready-to-wear and handbag categories.
Ralph Lauren’s performance in the most recent quarter makes it among the top performers in the industry. Hermès achieved 7 per cent sales growth in the most recent quarter, while Brunello Cucinelli sales grew 11 per cent and Prada Group’s 13 per cent.
In the fourth quarter, sales in Europe rose 16 per cent, while Asia grew 13 per cent and North America rose 6 per cent. Ralph Lauren’s performance in China was a standout, achieving over 20 per cent growth in Q4, while many competitors have struggled. The brand attributed its performance in China to high-quality new customer recruitment and key marketing moments such as its Lunar New Year campaign. Revenue in North America increased 3 per cent for the full year, while Europe increased 11 per cent and Asia grew 12 per cent. The company expects Asia and Europe to lead the growth in 2026.
Direct-to-consumer (DTC) comparable store sales grew 13 per cent in Q4 and 10 per cent for the full year, with positive trends across regions and channels. The brand attributed the growth to its “continued strong pricing power” and its inventory efficiencies (such as integrating predictive buying to better meet consumer demand).
In 2026, the company expects revenues to increase low-single digits, with growth weighted to the first half of the year. In Q1, it expects revenues to increase high-single digits year-on-year. Based on current tariff rates, the company expects gross margin to remain flat, with average unit retail (AUR) growth, reduced costs for cotton and a strong geographical and channel mix offsetting their negative impacts. The company said its sourcing strategy is sufficiently diversified, as it has been partnering with suppliers to drive efficiencies in terms of costs and broader operations.
At the the brand’s Autumn 2025 runway show, devoted to the Ralph Lauren woman, CEO Patrice Louvet discussed opportunities for growth and navigating global uncertainty.
“As we turn to fiscal 2026, the global operating environment has become more challenged with uncertainty around tariffs and broader consumer behaviour. Despite macro pressures, we are well positioned, having fundamentally transformed our business and built a more agile organisation over the past several years,” Louvet said. “We are staying prudent and flexible in what clearly continues to be a complex and dynamic global operating environment. Even within this context, we remain on offense with a focus on driving our brand momentum and consistently executing on our strategic priorities.”
When asked by analysts if the tariffs have impacted consumer perception of the brand’s Americana image, Louvet said: “We’re tracking consumer sentiment and social activity quite closely, both for our industry and for our brand in particular. At this stage, we have no call-outs in terms of slowing brand momentum or any concerns with anti-American sentiment that would apply to our business. It’s important to keep in mind that Ralph founded this company on values that are pretty universal: optimism, authenticity, timelessness, elegance, family. Those are globally relevant and are resonating wherever we play, including markets where you might be concerned about anti-American sentiment.”
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