Dive Brief:
- Ralph Lauren Corporation reported a net revenue increase of 6% to $1.7 billion in the second quarter of fiscal 2025, according to a Thursday earnings release.
- Retail sales rose 10.3% to $1.1 billion year over year and wholesale fell 1.6% to $589.2 million. Net revenue rose by single digits in all regions, and the company added 17 Ralph Lauren stores to its global network, bringing the total to 238. It reduced its outlet footprint by 11 stores, with nine closings in North America, bringing its global total to 332.
- The company raised its full-year fiscal 2025 outlook. It is now projecting a constant currency revenue increase of about 3% to 4%, reflecting its confidence in brand momentum and business trends, per the report.
Dive Insight:
The United States-based fashion company’s earnings bested some of its international rivals as the global luxury sector continues to experience uneven growth. Recent reports from LVMH, Kering and Ferragamo showed earnings declines, while other firms, including Prada and Hermès, saw increasing revenue.
“Our teams are executing well on our long-term strategy, injecting energy and excitement behind our storied brand through what continues to be a choppy global operating environment,” Patrice Louvet, president and CEO, said in the release. “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 North America, revenue rose 3% to $739 million in Q2, with comparable-store retail sales up 6% and a 9% increase in brick-and-mortar stores. Digital commerce fell 2% for the region and 2% wholesale revenue declined 3%, which the company said in its report was in-line with its outlook.
Second quarter revenue in Europe rose 7% to $566 million, and comparable store retail sales were up 15%, which the company said significantly exceeded expectations. Meanwhile, revenue in Asia increased 9% to $380 million, also ahead of expectations. Comparable-store sales in Asia rose 11%.
The company also increased its average unit retail price by 10% across its direct-to-consumer network for the period. It said the uptick was “above expectations and on top of a 9% increase last year,” which reflected a “continued mix shift toward our full-price businesses” as well as the durability of its “multi-pronged elevation approach.”
