In Q3 FY25, the company reported a 11% revenue increase to $2.14bn, increasing from $1.93bn in the same period last fiscal. 

This growth trajectory remained consistent in constant currency terms, with foreign currency fluctuations marginally dampening the revenue uptick by roughly 40 basis points. 

"Our teams around the world executed very well across geographies, channels, and categories this holiday to deliver on our long-term Next Great Chapter: Accelerate strategy.  

"We are encouraged by this quarter's strong performance, and we continue to be sharply focused on what's ahead for Ralph Lauren: leveraging the incredible power of our brand and diverse drivers of growth to stay on offense into the next year and beyond," said Patrice Louvet, Ralph Lauren president and chief executive officer.  

Ralph Lauren key metrics from Q3 FY25 

The company’s North American market contributed significantly to its performance with revenues climbing 7% to $998m, fuelled by sustained momentum in direct-to-consumer sales and a resurgence in the wholesale segment.

Retail comparable store sales in the region saw an 8% rise, bolstered by a notable 10% upswing in physical store sales and a 3% growth in digital commerce. 

In Europe, Ralph Lauren echoed this positive trend, marking a 16% surge to $604m on both a reported and constant currency basis. The retail sector in Europe experienced a 17% leap in comparable store sales, with brick-and-mortar locations enjoying an 18% increase and digital commerce advancing by 14%. 

The Asia region also reported substantial gains with revenues ascending 14% to $507m on a reported basis and achieving a 15% rise in constant currency. Comparable store sales in Asia climbed by 14%, driven by a 13% increase in physical stores and an impressive 29% boost in digital commerce. 

Operating income for the quarter stood at $390m, translating to an operating margin of 18.2%.  

Net income rose to $297.4m from $276.6m in the prior-year period, with earnings per diluted share reaching $4.66 compared to $4.19 in Q3 FY24. 

Operating expenses were up by 11%, totalling $1.1bn.  

Gross profit also saw an upturn from $1.28bn last year to $1.46bn this quarter, securing a gross margin of 68.4%. 

Ralph Lauren full year and Q4 fiscal 2025 outlook 

Ralph Lauren has adjusted its fiscal 2025 outlook and now anticipates constant currency revenue growth of about 6% to 7%.  

However, foreign currency is expected to negatively impact revenue by approximately 100 to 150 basis points.

Operating margin is projected to expand by about 120 to 160 basis points in constant currency, slightly higher than previous estimates, propelled by gross margin expansion of around 130 to 170 basis points. 

For the fourth quarter (Q4) specifically, constant currency revenues are forecasted to grow between 6% and 7% with foreign currency potentially reducing revenue growth by around 300 basis points. Operating margin is predicted to increase by about 120 to 140 basis points in constant currency for the quarter.