Ralph Lauren raises annual revenue forecast on resilient demand, quarterly revenue crosses $2 billion

Ralph Lauren raised its annual revenue forecast after beating quarterly estimates on Thursday due to resilient demand for its high-priced Polo shirts and cotton cable knit sweaters amid rising economic uncertainty.

The company now expects full-year revenue to increase 5% to 7% on a constant currency basis, compared with its prior forecast of a low- to mid-single-digit percentage growth.

The company posted quarterly revenue of $2.01 billion, compared with analysts’ estimates of $1.89 billion, as per data compiled by LSEG. Shares of the company were up about 1% in premarket trading. 

Ralph Lauren’s second quarter revenue from North America increased by 13% on a reported basis, RTE reported. The business’ China revenue rose by over 30% and its Europe revenue was up by 22% in the quarter.

The owner of several high-end apparel and accessory brands is seeing strong sales across its portfolio despite raising prices of select products, as it benefits from loyalty of its affluent customer base.

Ralph Lauren’s investments, innovation and marketing efforts have also helped it win over younger shoppers, who are often hunting for fresh and trendy styles. The brand has seen celebrities such as Taylor Swift and Selena Gomez wear its designs at recent events, further boosting visibility amongst consumers.

FashionNetwork.com with Reuters