Last quarter, the American brand unveiled the official uniforms for the Paris 2024 Olympic and Paralympic athletes on Team U.S.A. Image credit: Ralph Lauren
Evidenced by low single-digit rates, collections from U.S. fashion group Ralph Lauren are resonating in regions where other luxury players are instead facing revenue declines.
For the three months ended June 29, 2024 – Q1 2025, according to its fiscal calendar – the company grossed $1.5 billion on a reported basis, up 1 percent year-on-year. Its performance is trending positive in Europe and Asia, where profits increased by 6 percent and 4 percent, respectively.
“We delivered a solid start to the year, with first quarter performance exceeding our expectations on the top- and bottom-line led by our direct-to-consumer and international businesses,” said Patrice Louvet, president and CEO of Ralph Lauren, in a statement.
“The powerful combination of our brand strength and diverse growth drivers – together with our culture of agility and operating discipline – gives us confidence that our long-term strategy will continue to deliver even through these dynamic times.”
Gains and games
During the period, consumers in Asia boosted the corporation's bottom lines by $391 million, while Ralph Lauren brought in $479 million in Europe – both beat comparable totals from the quarter prior – North America did not offer the same profitability, mirroring results from its most recent annual report (see story).
Asia’s comparable store sales grew by 9 percent y-o-y, with a 21 percent surge in digital commerce and a 7 percent bump in income from bricks-and-mortar transactions. In Europe, these indicators lept 8 percent, 14 percent and 7 percent on the same basis, respectively.
Though North American revenues were higher than the two other major regions, reaching $608 million, this figure marks a quarterly decrease of 4 percent. Here, proceeds from retail jumped by 1 percent; however, a 3 percent rise in funds realized from bricks-and-mortar locations accompanies a 4 percent dip in online sales.
The house opened a World of Ralph Lauren store in Chicago, complete with the first-ever Ralph's Coffee stand in the Midwest. Image credit: Ralph Lauren
According to the group, the shift in Easter’s timing is at least partly to blame for the slowed performance in its home market.
Despite any pitfalls in North America, momentum continued at Ralph Lauren during the first quarter of the fiscal year. The label welcomed 1.3 million new customers in its direct-to-consumer businesses and more than 60 million social media followers, as eight owned and partnered stores entered its network.
Multiple activations grabbed audiences' attention, including sporty presentations and the renovation of the World of Ralph Lauren store in Chicago, complete with the signature RL restaurant and the first Ralph’s Coffee shop.
American basketball player LeBron James wore Ralph Lauren to perform his duties as flagbearer of Team USA. Image credit: Quinn Rooney/Getty Images
Beginning last quarter, the brand's biggest marketing effort is still unfolding, sparked by the unveiling of this year's Olympic and Paralympic Games uniforms on June 18, 2024 (see story).
During the opening Paris 2024 ceremonies, renowned American athletes wore the house’s designs, which were seen by a record-breaking number of global viewers.
“Our brand has always been about inspiring a better life and celebrating the moments that bring us together,” said Ralph Lauren, executive chairman and chief creative officer at Ralph Lauren, in a statement.
“From our intimate runway show at our New York studio this spring to our elegant Salone del Mobile presentation in Milan and this summer's Olympics, we are inviting people around the world to step into their dreams through authentic, timeless style.”