Ralph Lauren Exceeds Expectations with Strong Fiscal 2025 Results

Ralph Lauren ( (RL) ) has released its Q4 earnings. Here is a breakdown of the information Ralph Lauren presented to its investors.

Ralph Lauren Corporation is a global leader in the design, marketing, and distribution of luxury lifestyle products, including apparel, footwear, accessories, home, fragrances, and hospitality, known for its timeless style and authenticity.

Ralph Lauren reported a strong performance in its fourth quarter and full year fiscal 2025 results, surpassing expectations with significant revenue growth and margin expansion. The company also provided an initial outlook for fiscal 2026, indicating cautious optimism amid a challenging global environment.

Key financial highlights include an 8% increase in fourth-quarter revenue and a 7% rise for the full year, with constant currency growth of 10% and 8%, respectively. The company saw a 13% increase in global direct-to-consumer comparable store sales in the fourth quarter and a 10% increase for the full year. Ralph Lauren also achieved gross and operating margin expansion, maintaining a strong balance sheet with over $2 billion in cash and short-term investments. The company returned $625 million to shareholders and announced a 10% dividend increase and a $1.5 billion expansion of its share repurchase program.

Geographically, Europe led with a 12% revenue increase in the fourth quarter, followed by Asia with 9% and North America with 6%. For fiscal 2025, Europe and Asia showed strong performance with revenue increases of 11% and 9%, respectively. The company continued to expand its retail presence with new store openings and renovations across key cities.

Looking ahead, Ralph Lauren anticipates low-single-digit net revenue growth for fiscal 2026, with modest operating margin expansion. The company remains focused on driving growth across lifestyle categories and geographic regions while navigating ongoing macroeconomic uncertainties with a strong balance sheet and diversified supply chain.