Ralph Lauren Corporation Reports Strong Q2 Performance

Ralph Lauren Corporation (NYSE: RL) saw a 5.75% increase in its shares following impressive second-quarter results and an optimistic full-year outlook, reflecting robust consumer demand and effective brand elevation strategies.

Financial Highlights

• Adjusted earnings per share: $2.54, exceeding analyst estimates of $2.40.
• Revenue for the quarter: $1.7 billion, beating the consensus forecast of $1.68 billion, marking a 6% increase in both reported and constant currency.

Sales Growth

• Global direct-to-consumer comparable store sales grew 10% YoY, driven by strong retail performance across all regions.
• The average unit retail prices increased by 10% in the direct-to-consumer network.

Management Insights

Patrice Louvet, President and CEO, stated: “Our strong business performance across every geography this quarter underscores the resilience of our diversified growth drivers and our elevated consumer base.”

Updated Full-Year Outlook

Ralph Lauren has raised its fiscal 2025 outlook:
– Expecting constant currency revenues to rise 3% to 4%, up from previous estimates.
– Anticipating operating margin expansion of 110 to 130 basis points in constant currency.

Q3 Projections

For the third quarter, Ralph Lauren anticipates:
– Constant currency revenue growth of 3% to 4%.
– Operating margin expected to expand by 100 to 140 basis points.

Financial Health

The company reported a solid balance sheet with $1.7 billion in cash and short-term investments, and it has returned approximately $375 million to shareholders through dividends and share repurchases in the fiscal year-to-date.