Ralph Lauren's net income for the second quarter reached $1.7 billion, an increase of 6 percent year over year. Gross profit stood at $1.2 billion, with a gross margin of 67.0 percent, an increase of 160 basis points from the previous year, the company said in its financial statement.
Ralph Lauren Corporation reported Q2FY25 earnings per diluted share of $2.31, up 5 percent year over year as reported, and $2.54 adjusted, up 21 percent. Net income increased 6 percent to $1.7 billion, while gross profit reached $1.2 billion with a margin of 67.0 percent. Regional revenue grew, driven by strong results in Asia, Europe and North America.
Its operating expenses were $977 million, with adjusted operating expenses of $958 million, representing an increase of 7 percent. Operating income reached $179 million, while adjusted operating income increased to $197 million, representing an operating margin of 11.4 percent.
The brand's regional revenue growth showed positive trends in major markets. In Asia, revenue rose 9 percent to $380 million as reported (10 percent in constant currency), driven by strong performance in China. Europe saw a 7 percent increase in revenue, reaching $566 million (6 percent in constant currency), with notable growth in both physical stores and digital channels. North America saw a 3 percent increase in revenue to $739 million, where direct-to-consumer growth offset a planned decline in wholesale revenue.
The second quarter also saw significant achievements in Ralph Lauren's strategic growth initiatives. The company attracted 1.5 million new customers, boosted brand consideration and increased net promoter scores. Social media engagement grew by a low double-digit percentage, surpassing 62 million followers. The company outfitted Team USA for the Paris 2024 Olympics, sponsored Wimbledon and the US Open Tennis Championships, and hosted the Hamptons-inspired World of Ralph Lauren Spring 2025 fashion show this quarter .
Looking ahead, Ralph Lauren Corporation has updated its outlook for the full fiscal year, projecting steady foreign exchange revenue growth of 3 to 4 percent. Operating margins are expected to expand between 110 and 130 basis points, driven by solid improvements in gross margin. The full-year tax rate is expected to be in the range of 22 to 23 percent, reflecting changes from the previous year.
Ralph Lauren, CEO and Chief Creative Officerhighlighted the brand’s enduring appeal: “A spirit of optimism and the simple elegance of timeless style – these are elements that have come to define our brand. “This summer was a celebration of everything we hold dear, and as we focus on the holidays, we will continue to inspire people around the world to come together and make their dreams come true.”
Patrice Louvet, President and CEOpraised the company's strategic execution: “Our teams are executing well on our long-term strategy, injecting energy and enthusiasm behind our historic brand through what remains a hectic global operating environment. Our strong business performance across geographies this quarter underlines the resilience of our diversified growth drivers and elevated consumer base, giving us confidence to return to our financial outlook for the full fiscal year ahead of the important holiday season.”
Fiber2Fashion News Desk (KD)
