Ralph Lauren shares jump as strong sales help drive growth

Ralph Lauren shares surged about 10% in morning trading on Thursday after the high-end apparel brand beat quarterly revenue estimates, ​buoyed by strong sales in China as affluent shoppers continued to buy Polo shirts and cable-knit jumpers.

Sales in Asia led the revenue growth with “exceptionally strong” ‌results in China during the Lunar New Year, CEO Patrice Louvet said in a call with analysts, pointing to more than 50% sales growth in the country. Wall Street investors are focused on how luxury brands are performing in the Chinese market, where consumers have shown signs of strain in recent months and luxury spending has faltered.

The jump in shares put Ralph Lauren’s stock ​on track for its largest daily increase since April 2025.

The nearly 60-year-old American label reported quarterly revenue of $1.98 billion, above analysts’ estimate of $1.85 billion. The company ​forecast mid-single-digit revenue growth for the current fiscal year, while warning of some strain from the Middle East conflict and ⁠high energy prices.

Founded by designer Ralph Lauren in 1967 as a line of ties before rising to the top ranks of American fashion, the brand is among companies ​that have recently bucked the trend of a slowdown in the global luxury sector. It embarked on a turnaround plan about a decade ago and analysts attribute its ​recent success in part to the brand’s growing appeal among a younger generation of shoppers, while maintaining a multi-generational consumer base.

Under the leadership of Louvet, who took charge in 2017, Ralph Lauren has made a concerted effort to lure in a new generation through youth-focused products and social media engagement.
Analysts have also attributed its recent momentum to its market position as a value player compared to many ​luxury competitors.

Ralph Lauren sells $118 polo shirts and $498 leather bags – in addition to bags that well exceed $3,000. Its range of price points has helped maintain its appeal, analysts ​noted, even as shoppers balk at price hikes from major luxury players.

“Ralph Lauren has had the benefit that it had more room to grow to Asia and Europe as compared with ‌other luxury ⁠apparel firms,” said David Swartz, analyst at Morningstar.