Fashion brand Ralph Lauren has seen fourth quarter (Q4) and full financial year 2025 (FY25) revenues surpass expectations, with FY25 registering 7% growth.
The company’s North American market experienced 3% revenue rise, while its European revenues climbed by 11%.
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During the fiscal year ended 29 March 2025, the retailer recorded gross profit of $4.85bn, an improvement from $4.43bn in fiscal 2024, with gross margin standing at 68.6%.
Operating income reached $932.1m in FY25, with North America and Europe contributing $640m and $566m respectively.
Ralph Lauren also reported net income of $742.9m, which translates to $11.61 per diluted share, compared to a net income of $646.3m, or $9.71 per diluted share reported in the preceding fiscal year.
Executive chairman and chief creative officer Ralph Lauren stated: “Our brand has stood the test of time because we have stayed true to the values that define us: quality, authenticity, timeless style.
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By GlobalData“Through periods of economic strength and uncertainty alike, our teams around the world remain focused on delivering our vision with great care and passion, enabling us to make the right choices both for today and into the future.”
In the fourth quarter of fiscal 2025, the company’s revenue increased 8% to $1.69bn and gross profit was noted at $1.16bn with gross margin consistent at 68.6%.
The company’s net income rose to $129m, or $2.03 per diluted share, compared to a net income of $91m, or $1.38 per diluted share, in the same quarter of the previous year.
The company added: “As we enter fiscal 2026, we remain on offence — with a focus on driving our multiple engines of growth across lifestyle categories, geographies and channels. At the same time, we will stay agile and prudent — leaning into our diversified supply chain, operating discipline and a strong balance sheet as we manage through ongoing macroeconomic uncertainty.”
Looking ahead to fiscal 2026, Ralph Lauren anticipates revenue growth in the low-single digits on a constant currency basis compared to 2025, with expectations for growth more pronounced in the first half of the fiscal year.
Operating margin is projected to see modest expansion due primarily to operating expense leverage.
For the first quarter of fiscal 2026, the company forecasts revenue growth in the high-single digits on a constant currency basis.
It expects operating margin expansion between approximately 150 to 200 basis points due to gross margin growth and slight operating expense leverage.
