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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.
Revenue by Segment
Revenue by Geographic Location
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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