RL: Ralph Lauren Stock Rises 1.2% as Revenue Soars to $1.7 Billion. Price Hikes Ahead.

Luxury clothing giant said it’s going to pass on the tariff costs to the end consumer as a way to preserve its margins amid a challenging macro environment.

💸 Shares Jump on Solid Earnings

• Ralph Lauren stock RL climbed 1.2% on Thursday after the company released its financial performance for the fiscal fourth quarter that ended March 29.
• It was pretty good — the luxury fashion house reported stronger-than-expected earnings and revenue for the final quarter of its fiscal year. But against the backdrop of looming tariff jitters and macro headwinds, the company is leaning into its pricing power — and plans to raise prices even more to protect profit margins.

📢 Earnings Beat, Revenue Too

• For the first three months of 2025, Ralph Lauren posted a profit of $129 million, or $2.03 per share, up from $90.7 million, or $1.38 per share, in the same quarter last year. Analysts had expected EPS closer to $1.90, giving the upscale brand a solid beat. Adjusted earnings rose to $2.27 a share, up 33% from last year’s $1.71 figure.
• Revenue surged 8% to $1.7 billion, topping the $1.65 billion consensus. The company cited strong consumer demand for premium apparel, paired with lower input costs — particularly cotton — as key drivers behind the performance.

📈 Guidance Steady for 2026

• But it’s not all smooth sailing: with US tariffs on imported goods back in focus, Ralph Lauren said it would raise prices more than previously planned to absorb the hit and preserve margins. Executives said their core clientele hasn’t blinked at higher price tags just yet — and they’re betting that continues.
• Looking ahead, the company expects low-single-digit revenue growth in fiscal 2026, and plans to keep pushing its “elevated lifestyle” positioning across global markets.
• The brand is banking on brand loyalty, selective pricing, and premium offerings to keep shoppers opening their wallets — even in an uncertain economic climate.