Ralph Lauren mulls price hikes as tariffs hurt sales forecast
May 22, 2025
A general view shows the New York Stock Exchange, Thursday, April 10, 2025, in New York. (AP Photo/Yuki Iwamura) (Yuki Iwamura/AP)
Ralph Lauren forecast tepid annual sales on Thursday and said it was weighing price increases for its classic Polo shirts and spring dresses, as the apparel retailer grapples with volatile U.S. tariffs and consumer spending pressures.
Its shares were marginally higher in early trade, as the company beat fourth-quarter estimates for revenue and profit, thanks in part to investments in brands including Polo and Purple Label, as well as increased marketing.
The company expects fiscal 2026 revenue to increase in the low-single digits from last year, including the impact of tariffs, inflationary pressures and spending challenges. Analysts estimate a rise of 4.39%, per data compiled by LSEG.
“The outlook is far more modest. Weakening consumer sentiment and ongoing tensions from trade and geopolitical relations may dampen the appeal of iconic U.S. brands such as Ralph Lauren in overseas markets,” said Sky Canaves, analyst with eMarketer.
Ralph Lauren is among the retailers and luxury brands facing the brunt of unpredictable U.S. tariff shifts that have disrupted businesses and rattled shoppers worldwide.
In fiscal 2024, the company sourced about 96% of its products from outside the U.S., with 15% coming from China, according to its annual filings.
China is also a major market for Ralph Lauren products, following North America and Europe.
While the recent 90-day trade truce between Washington and Beijing cut U.S. tariffs on China to 30% from an eye-watering 145%, the relief is expected to be brief for the Asian country’s export-reliant economy.
Ralph Lauren posted fiscal 2025 gross margin of 68.6%, and forecast it would be flat for fiscal 2026 as higher prices, lower cotton costs, and better sales in key areas help offset steep tariffs and other material costs.
Its revenue of $1.70 billion for the quarter ended March 29, beat estimates of $1.65 billion, while adjusted profit of $2.27 per share trumped estimates of $2.
Anuja Bharat Mistry in Bengaluru; Editing by Devika Syamnath, Reuters
Ralph Lauren forecast tepid annual sales on Thursday and said it was weighing price increases for its classic Polo shirts and spring dresses, as the apparel retailer grapples with volatile U.S. tariffs and consumer spending pressures.
Its shares were marginally higher in early trade, as the company beat fourth-quarter estimates for revenue and profit, thanks in part to investments in brands including Polo and Purple Label, as well as increased marketing.
The company expects fiscal 2026 revenue to increase in the low-single digits from last year, including the impact of tariffs, inflationary pressures and spending challenges. Analysts estimate a rise of 4.39%, per data compiled by LSEG.
“The outlook is far more modest. Weakening consumer sentiment and ongoing tensions from trade and geopolitical relations may dampen the appeal of iconic U.S. brands such as Ralph Lauren in overseas markets,” said Sky Canaves, analyst with eMarketer.
Ralph Lauren is among the retailers and luxury brands facing the brunt of unpredictable U.S. tariff shifts that have disrupted businesses and rattled shoppers worldwide.
In fiscal 2024, the company sourced about 96% of its products from outside the U.S., with 15% coming from China, according to its annual filings.
China is also a major market for Ralph Lauren products, following North America and Europe.
While the recent 90-day trade truce between Washington and Beijing cut U.S. tariffs on China to 30% from an eye-watering 145%, the relief is expected to be brief for the Asian country’s export-reliant economy.
Ralph Lauren posted fiscal 2025 gross margin of 68.6%, and forecast it would be flat for fiscal 2026 as higher prices, lower cotton costs, and better sales in key areas help offset steep tariffs and other material costs.
Its revenue of $1.70 billion for the quarter ended March 29, beat estimates of $1.65 billion, while adjusted profit of $2.27 per share trumped estimates of $2.
Anuja Bharat Mistry in Bengaluru; Editing by Devika Syamnath, Reuters
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