Ralph Lauren has posted above-expectation earnings for its first quarter 2025. This momentum is the result of positive results in Europe and Asia, providing the American label with a timely growth driver at a time when sales in North America are faltering.
Under the new management of Patrice Louvet, Ralph Lauren is undergoing a phase of strategic transformation. Results for the first quarter of fiscal 2025 reveal a mixed dynamic. Difficulties in North America were offset by positive results in Europe and Asia, illustrating the Group’s challenges and successes in a complex economic context. This rebalancing of strengths enabled Ralph Lauren to post a net profit of $169 million, up 27% on the previous year.
North America struggling
Ralph Lauren’s first quarter highlights significant differences in regional performance. In North America, sales fell by 4% to $608 million. This decline was mainly due to the sales network, which posted a 13% decrease. E-commerce sales held upbetter, down 4%. Growth came from sales in physical stores, with a slight increase of 1%.
By contrast, leadership was assured by Europe and Asia, up 6% to $479 million and 4% to $391 million respectively. Sales growth on the Old Continent was underpinned by an 8% increase in sales in physical stores and a 14% rise in e-commerce. Revenues in Asia-Pacific were driven by e-commerce, with a notable rise of 21%, while physical outlets posted growth of 7%.
In this region, China and especially Japan – Ralph Lauren’s largest market in Asia – stand out. Recently appointed CFO Justin Picucci attributes the label’s dazzling success in the Land of the Rising Sun to key marketing campaigns and a rebound in tourist spending.
Elevation strategy in sight
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