Ralph Lauren has reported an 8% rise in global sales for the 2025 fiscal year, reaching $7.1 billion, as the brand’s international presence continues to drive its growth. The fourth quarter alone saw a 10% increase in sales, surpassing the company’s own projections of 6 to 7%.
Europe and Asia, particularly China, emerged as key growth engines, propelling international revenues to their highest levels yet and making up the largest share of the company’s overall revenue and profits.
“As we close out this third and final year of our Accelerate [strategic growth] plan, we are proud to have delivered strongly on both our strategic and financial commitments. Our achievements this fiscal year embody so much of what Ralph Lauren stands for as one of the most beloved iconic brands in the world.” said CEO Patrice Louvet during an earnings call.
Louvet emphasized that Ralph Lauren’s appeal is rooted in its timeless values and lifestyle appeal, rather than individual products alone. “As Ralph would say, it’s never been just about a tie or a polo shirt or a sweater; it’s about the values that are so authentic to us — quality, effortless style, time well spent together with family and friends, stepping into our dreams. This year’s performance clearly demonstrates the growing desirability of our brand, which remains our most powerful asset and is resonating with consumers around the world.”
Strategic decisions to elevate the brand, including tighter inventory control, fewer discounts, and a focus on core products, have helped the company maintain pricing strength. Today, 70% of Ralph Lauren’s product line consists of core offerings designed to perform well across economic cycles. Growth in women’s ready-to-wear and handbag categories has further diversified the portfolio.
In regional performance, Europe posted a 16% rise in Q4 sales, Asia climbed 13%, and North America grew by 6%. China stood out with over 20% growth in the final quarter, thanks to effective customer acquisition strategies and marketing moments such as the Lunar New Year campaign. For the full year, North America was up 3%, while Europe and Asia gained 11% and 12% respectively.
Direct-to-consumer comparable store sales increased by 13% in the fourth quarter and 10% for the full year, supported by strong pricing power and improved demand forecasting.
Looking ahead, Ralph Lauren expects revenue growth in the low-single digits for 2026, with stronger momentum anticipated in the first half. The company is also projecting flat gross margins due to a balanced mix of pricing, raw material cost savings, and channel performance. The current sourcing strategy is said to be well-diversified, helping mitigate tariff-related disruptions.
“As we turn to fiscal 2026, the global operating environment has become more challenged with uncertainty around tariffs and broader consumer behaviour. Despite macro pressures, we are well positioned, having fundamentally transformed our business and built a more agile organisation over the past several years. We are staying prudent and flexible in what clearly continues to be a complex and dynamic global operating environment. Even within this context, we remain on offense with a focus on driving our brand momentum and consistently executing on our strategic priorities. ” Louvet said.
Addressing concerns over potential reputational risks due to trade tensions, Louvet added: “We’re tracking consumer sentiment and social activity quite closely, both for our industry and for our brand in particular. At this stage, we have no call-outs in terms of slowing brand momentum or any concerns with anti-American sentiment that would apply to our business. It’s important to keep in mind that Ralph founded this company on values that are pretty universal: optimism, authenticity, timelessness, elegance, family. Those are globally relevant and are resonating wherever we play, including markets where you might be concerned about anti-American sentiment.”
