How did Ralph Lauren's revenue and expenses trend in Q3 2025?

**Ralph Lauren's Revenue and Expenses Trends in Q3 2025**:

1. **Revenue Growth**: Ralph Lauren Corporation reported a robust third quarter performance, with total revenue growth of 11%, exceeding expectations. The company's direct-to-consumer and wholesale channels both delivered better-than-expected results, with global retail comps growing by 12%. This growth was driven by strong sales early in the quarter, particularly during the Black Friday week, which enabled the company to reduce promotions and focus on full-price selling.
2. **Segmental Analysis**: Within the revenue segments, Licensing and Retail showed significant growth, with Revenue by Segment Growth Rate of 3.55% and 1.03 billion respectively. Wholesale also contributed positively, with a growth rate of 3.55% and 445.6 million in revenue. The Licensing segment experienced a notable increase, with a growth rate of 3.55% and a revenue of 390.9 million. The Retail segment followed a similar trend, with a growth rate of 3.55% and a revenue of 1.03 billion. The Wholesale segment also performed well, with a growth rate of 3.55% and a revenue of 445.6 million.

3. **Operating Margin Expansion**: The company achieved a significant expansion in operating margins, with an increase of 190 basis points to 68.3%. This improvement was driven by Average Unit Revenue (AUR) growth, which increased by 12% in the third quarter. Gross margin expansion contributed to the operating margin improvement, partially offset by higher freight expenses due to East Coast port disruptions.
4. **Expense Management**: The company's expense management was effective, as evidenced by the ability to maintain a healthy balance sheet and cash flows. Ralph Lauren reported approximately $980 million in free cash flows and returned approximately $500 million to shareholders year-to-date through dividends and repurchases of Class A Common Stock.
5. **Future Outlook**: Despite the positive performance, the company anticipated a negative impact on full-year revenue growth due to foreign currency fluctuations, with an expected reduction of 100 to 150 basis points. However, the operating margin was expected to expand by 120 to 160 basis points, driven by gross margin expansion. The fourth quarter's constant currency revenues were projected to increase by 6% to 7%, with operating margin expansion expected to be approximately 120 to 140 basis points.

In conclusion, Ralph Lauren's Q3 2025 financial performance was marked by strong revenue growth, effective expense management, and significant improvements in operating margins. The company's strategic focus on full-price selling and disciplined expense management contributed to these positive outcomes.