Ralph Lauren revenue rises 1% on stable demand in Europe, China

Ralph Lauren Corp posted a rise in quarterly revenue on Wednesday, benefiting from steady demand for its pricey denims and polo shirts in Europe and Asia. Shares of the New York-based company rose 3% in premarket trading.

Steady appetite from wealthier consumers has driven demand for designer fashion at companies such as Canada Goose and Miu Miu-owner Prada, even as their European rivals signaled cooling luxury demand due to a pullback in spending by “aspirational” shoppers and challenges in China.

Cautious inventory planning by wholesale retailers pulled down Ralph Lauren’s North America revenue by 4% to $608 million, but sales in Europe and Asia grew from last year.

That contrasts a recent string of bleak earnings from European rivals including the world’s biggest luxury group LVMH, German fashion house Hugo Boss, Burberry, and Gucci owner Kering.

Ralph Lauren’s net revenue rose 1% to $1.51 billion in the first quarter. Analysts on average had expected a decline of 0.46%, according to LSEG data.

It earned $2.70 per share on an adjusted basis, beating estimates of $2.47.

Adjusted gross margin also rose 170 basis points from the prior year to 70.5%, aided by lower cotton costs and full-price selling.

For the current quarter, it expects constant currency revenues to grow in the range of 3% to 4%, compared with estimates for a 3% rise.

The Polo Bear sweaters maker reaffirmed its fiscal 2025 sales and margin expectations.