Ralph Lauren Raises Annual Revenue Forecast Amid Strong Demand, Shares Fall on Cautionary Note.

Ralph Lauren raised its FY22 revenue forecast, driven by strong demand from affluent shoppers in North America, Europe, and China. However, its shares fell 4% after CEO Patrice Louvet expressed caution about the global operating environment in the second half of the fiscal year. The company's strategy of ramping up marketing spend and product innovation has helped gain market share in its core categories.

Ralph Lauren Corp. has raised its fiscal year 2022 revenue forecast, driven by strong demand from affluent shoppers in North America, Europe, and China. The company expects its revenue to increase low to mid-single digits from last year, compared to its prior target of a low-single digits increase [1].

Shares of the apparel maker fell 4% after CEO Patrice Louvet expressed caution about the global operating environment in the second half of the fiscal year. The company's strategy of ramping up marketing spend and product innovation has helped gain market share in its core categories [2].

Ralph Lauren's upbeat forecast is in contrast to bigger European rivals such as Gucci-owner Kering and Dior-parent LVMH, which have seen a sales slowdown in their most recent quarter. The company said its forecast accounted for inflationary pressures, tariffs, and global supply chain disruptions [3].

Ralph Lauren's average unit retail prices increased 14% through its own stores and website, contributing to the revenue growth. The company has grown more bullish on the year, projecting revenues to increase in the low to mid-single digits on a constant currency basis [4].

However, the strong outlook comes against a backdrop of a tougher market. Patrice Louvet, president and chief executive officer, expressed caution about the back half of the year, particularly in North America, due to the expected inflationary environment and how consumers will respond to price increases [4].

References:
[1] https://finance.yahoo.com/news/ralph-lauren-raises-annual-revenue-120817579.html
[2] https://finance.yahoo.com/news/yum-brands-misses-second-quarter-145402133.html
[3] https://www.investing.com/news/stock-market-news/ralph-lauren-lifts-annual-revenue-view-on-demand-from-affluent-shoppers-4176649
[4] https://wwd.com/business-news/financial/ralph-lauren-q1-2025-earnings-outlook-raised-1238030699/