Ralph Lauren Is Growing Despite Tariff Headwinds, Hikes Dividend By 10%

Ralph Lauren Corp RL shares are trading higher on Thursday after the company reported fourth-quarter FY25 financial results.

The luxury fashion company reported sales growth of 8% year-on-year (Y/Y) to $1.70 billion, beating the analyst consensus estimate of $1.64 billion. Adjusted EPS of $2.27 beat the consensus estimate of $2.00.

Revenue in North America increased by 6% Y/Y to $705 million, Europe jumped by 12% Y/Y to $526 million, and Asia climbed by 9% Y/Y to $432 million.

Also Read: Trump Tariffs To Hurt Nike, Under Armour, VF: Are Ralph Lauren, Foot Locker Safer Bets?

Global direct-to-consumer comparable store sales increased 13% Y/Y in the quarter.

Gross profit was $1.2 billion, with a gross margin of 68.6%. Adjusted gross margin was also 68.6%, 200 basis points above the prior year.

Operating margin was 9.1%, and operating income for the quarter stood at $155 million. The adjusted operating margin was 10.3%, which is 160 basis points above the prior year.

Ralph Lauren generated $1.24 billion in operating cash flow and held $1.92 billion in cash and equivalents as of March 29, 2025, compared to $1.07 billion and $1.67 billion in the year-ago quarter.

Operating cash flow for the year totaled $1.24 billion in the year.

The company repurchased approximately $425 million of Class A Common Stock in the year, with $352 million remaining on its existing share repurchase plan at the end of the fiscal year.

Ralph Lauren’s Board of Directors approved a 10% increase in its regular quarterly cash dividend on Common Stock.

The revised dividend is now $0.9125 per share each quarter, payable on July 11, 2025, to shareholders on record as of June 27, 2025.

Patrice Louvet, President and Chief Executive Officer, said, “As we enter Fiscal 2026, we remain on offense — with a focus on driving our multiple engines of growth across lifestyle categories, geographies, and channels. At the same time, we will stay agile and prudent — leaning into our diversified supply chain, operating discipline, and strong balance sheet as we manage through ongoing macroeconomic uncertainty.”

Quarterly And Annual Outlook

On a constant currency basis, the company projects revenue growth of around single digits for the first quarter compared to the same period last year.

For FY26, Ralph Lauren anticipates revenue growth in the low-single digits compared to the previous year on a constant currency basis, with most of this growth expected to occur in the first half of the fiscal year.

RL said that based on the current assessment of tariff rates, gross margin is expected to be approximately flat in constant currency, with AUR growth, reduced cotton costs and favorable geographic and channel mix offsetting the negative impact of increased tariffs and non-cotton material costs. Based on current exchange rates, foreign currency is expected to have a relatively minimal impact on revenue and gross and operating margins in Fiscal 2026.

Investors can gain exposure to the stock via the KraneShares Trust KraneShares Global Luxury Index ETF KLXY and the PGIM ETF Trust PGIM Jennison Focused Mid-Cap ETF PJFM.

Price Action: RL shares are up 1.87% at $279.01 at the last check on Thursday.

Read Next:

• From AI To Geopolitics – JPMorgan’s Advisory Unit To Tackle New Era Of Risk Management

Photo by Nickolastock via Shutterstock