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Ralph Lauren On a Run in Q2 With 17% Revenue Gain
Yahoo Financeยท 2025-11-06 14:29
Core Insights - Ralph Lauren Corp. has experienced significant growth, with revenues increasing by 17 percent to $2 billion in the fiscal second quarter, and a 14 percent rise in constant currencies [1] - The company reported a nearly 40 percent increase in net profits, reaching $207.5 million, and adjusted earnings per share of $3.79, surpassing analyst expectations [3] Revenue Performance - North American net revenues rose by 13 percent, Europe saw a 22 percent increase, and Asia grew by 17 percent [1] - A 12 percent increase in average unit retail prices in the direct-to-consumer network contributed to revenue growth [2] Profitability Metrics - Adjusted operating income reached $283 million, with a margin of 14.1 percent, an improvement of 270 basis points year-over-year [3] Future Outlook - The company has raised its fiscal 2026 sales growth forecast to 5 to 7 percent in constant currencies, up from previous low to mid-digit expectations [5] - Operating margins are expected to expand by 60 to 80 basis points, an increase from the earlier forecast of 40 to 60 basis points [5] Management Commentary - The CEO expressed confidence in the company's broad-based momentum and its ability to raise guidance for both revenue and margins [4] - Despite the positive outlook, there is a note of caution regarding potential macroeconomic impacts, particularly from tariffs affecting consumer behavior in the U.S. [7]