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Dec 28, 2024
Ralph Lauren Q3 2025 Earnings Report
Ralph Lauren's Q3 2025 earnings exceeded expectations, driven by strong holiday performance across all geographies and increased full-year outlook.
Key Takeaways
Ralph Lauren reported an 11% increase in revenue to $2.1 billion for the third quarter of fiscal 2025, driven by better-than-expected holiday performance in all geographies. Adjusted earnings per diluted share rose by 16% to $4.82. The company raised its full-year fiscal 2025 revenue and adjusted operating margin expansion outlook based on strong year-to-date performance.
Revenue increased by 11%, surpassing expectations with strong holiday sales in all regions.
Global Direct-to-Consumer comparable store sales grew by 12%, fueled by positive retail comps across regions and channels.
Adjusted gross and operating margin expansion exceeded expectations due to strong full-price demand and expense discipline.
The company maintained a healthy balance sheet with accelerated free cash flows and well-positioned inventories.
Ralph Lauren
Ralph Lauren
Ralph Lauren Revenue by Segment
Ralph Lauren Revenue by Geographic Location
Revenue by Segment
North America Revenue
CapyFin.comEurope Revenue
CapyFin.comAsia Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comEurope Revenue
CapyFin.comAsia Revenue
CapyFin.com Forward Guidance
The company expects constant currency revenues to increase in a range of approximately 6% to 7% for fiscal year 2025. Operating margin for the fourth quarter is expected to expand approximately 120 to 140 basis points in constant currency.
Positive Outlook
- Constant currency revenues are expected to increase by 6% to 7% for fiscal year 2025.
- Gross margin is expected to expand by approximately 130 to 170 basis points for fiscal year 2025.
- Operating margin is expected to expand by approximately 120 to 160 basis points in constant currency for fiscal year 2025.
- Operating margin for the fourth quarter is expected to expand by approximately 120 to 140 basis points in constant currency.
- Gross margin expansion of approximately 80 to 120 basis points is expected for the fourth quarter.
Challenges Ahead
- Foreign currency is expected to negatively impact revenues by approximately 100 to 150 basis points in Fiscal 2025.
- Foreign currency is expected to negatively impact both gross and operating margins by approximately 30 to 50 basis points for fiscal year 2025.
- Foreign currency is expected to negatively impact revenue growth by approximately 300 basis points for the fourth quarter.
- Foreign currency is expected to negatively impact both gross and operating margins by approximately 60 to 80 basis points in the fourth quarter.
- The company's full year Fiscal 2025 tax rate is still expected to be in the range of approximately 22% to 23%, increasing from 19% in the prior year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income