Signaling a robust performance driven by affluent customers purchasing its high-end cable-knit sweaters and Oxford shirts, Ralph Lauren has raised its annual sales forecast. This strong result stands out against a broader slowdown in the luxury market, notably affecting major European fashion houses like Hugo Boss, Kering, and LVMH, which have been impacted by a decline in the vital Chinese market.

Supported by a relatively smaller sales base, Ralph Lauren has experienced solid growth in China, accounting for approximately 7 per cent of its overall revenue, as per Citigroup analysts. The brand’s sales in North America, representing about 44 per cent of Ralph Lauren’s total revenue, increased by 3 per cent during the quarter. Meanwhile, revenue from Europe rose by 7 per cent.

Known for its iconic Polo Bear sweaters, the company projects, its fiscal 2025 revenue will grow in the range of 3 per cent– 4 per cent, as against its earlier forecast of a 2 per cent to 3 per cent increase. This adjustment follows strategic shifts, including reducing its reliance on department stores like Macy’s, which have faced difficulties in attracting customers. Instead, Ralph Lauren has prioritized full-price sales and reduced promotions through its branded outlets and online channels.

The brand’s adjusted gross margin expanded by 160 basis points to 67 per cent during the quarter driven by a 10 per cent increase in average selling price and lower cotton costs. Quarterly net revenue grew by 6 per cent Y-o-Y to $1.73 billion, surpassing analysts’ expectations of $1.68 billion, as compiled by LSEG.