Ralph Lauren Raises Annual Outlook Despite Shares Falling on Slower Growth Forecast

Ralph Lauren raised its full-year revenue and operating margin forecasts on Thursday, supported by strong demand in North America and Asia. However, its shares fell around 3% in early trading after the company projected third-quarter revenue growth of 3% to 4%, below Wall Street expectations of 4.2%. The weaker-than-expected forecast disappointed investors who were looking for stronger growth momentum following the company’s recent outperformance.

The premium apparel brand has continued to benefit from spending by higher-income US consumers, particularly on its cable-knit sweaters and Polo shirts. China has also emerged as a key growth market, with revenue increasing 35% in the second quarter. Ralph Lauren attributed its lower third-quarter outlook partly to the timing of wholesale shipments and fewer off-price sales. Meanwhile, CEO Patrice Louvet expressed optimism about the upcoming holiday season, identifying women and younger consumers as important growth drivers.

For fiscal 2027, the company now expects revenue growth of around 6% to 7%, compared with its earlier forecast of 5% to 6%. It also raised its annual operating margin growth outlook to 80–100 basis points on a constant-currency basis. In the second quarter, revenue increased 9% to $2.19 billion, exceeding analysts’ estimates of $2.12 billion, while adjusted earnings per share reached $4.64, above expectations of $4.26. Despite the improved financial outlook, investor expectations for faster growth continue to put pressure on the company’s stock.

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