Ralph Lauren exceeds expectations again in the third quarter and sets itself higher targets

US fashion group Ralph Lauren Corporation once again exceeded expectations in the third quarter of its 2024/25 fiscal year. On Thursday, the company reported surprisingly strong growth in revenue and earnings, raising its full-year guidance once again.

In the three months ending December 28, revenue reached 2.14 billion dollars, surpassing the prior-year quarter by 11 percent, thanks to a strong holiday season.

The surprisingly significant increase was driven by solid growth across all market regions. Revenue in North America rose by 7 percent to 998 million dollars, in Europe by 16 percent to 604 million dollars, and in Asia by 14 percent to 507 million dollars.

Company raises revenue and earnings guidance again

Operating income increased by 23 percent to 389.7 million dollars, due in part to an improved gross margin. Net income reached 297.4 million dollars, exceeding the prior-year quarter by 7.5 percent.

In light of the surprisingly strong growth, management raised its guidance for the current fiscal year. The company now expects currency-neutral revenue growth of 6 to 7 percent, up from the previous forecast of 3 to 4 percent.

The operating margin is expected to increase by approximately 120 to 160 basis points year-over-year, adjusted for one-time items and currency effects. Previously, the company had projected an improvement of 110 to 130 basis points.