Ralph Lauren Issues Q3 View, Lifts FY25 Forecast After Q2 Beats Market; Stock Climbs - Update

(RTTNews) - Luxury fashion house Ralph Lauren Corp. (RL), while reporting higher second-quarter earnings above market estimates, on Thursday issued third-quarter outlook, and raised its forecast for fiscal 2025 revenues and operating margin.

In pre-market activity on the NYSE, Ralph Lauren shares were gaining around 8.5 percent to trade at $225.65.

For the third quarter, the company expects constant currency revenues to grow around 3 percent to 4 percent. Operating margin is expected to expand approximately 100 to 140 basis points in constant currency, driven by gross margin expansion.

For fiscal 2025, Ralph Lauren now expects constant currency revenues to increase in a range of around 3 percent to 4 percent. The previous outlook was revenue growth around low-single digits on a constant currency basis, centering on around 2 percent to 3 percent.

Operating margin is now expected to expand approximately 110 to 130 basis points in constant currency. The previous estimate was to expand approximately 100 to 120 basis points.

In its second quarter, Ralph Lauren's earnings totaled $147.9 million or $2.31 per share, higher than $146.9 million or $2.19 per share last year.

Adjusted earnings were $162.1 million or $2.54 per share for the period, compared to $2.10 a year ago.

Analysts on average had expected the company to earn $2.41 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

The company's revenue for the quarter rose 5.7 percent to $1.726 billion from $1.633 billion last year. The Street was looking for revenues of $1.68 billion.

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