Ralph Lauren Corporation has raised its full-year revenue outlook, driven by robust sales growth in Europe and Asia, particularly in China, and strong expectations for the holiday shopping season. The apparel giant now forecasts annual revenue growth of 3% to 4%, exceeding analysts’ expectations and its previous estimate of 2% to 3% (excluding currency fluctuations). This optimistic outlook caused Ralph Lauren’s shares to rise up to 7% in premarket trading, with its stock already up 44% this year—significantly outperforming the S&P 500’s 24% gain.

1. China’s Strong Sales Performance

• Ralph Lauren reported low-teen percentage growth in China during the most recent quarter.

• Unlike many luxury brands struggling in China due to consumer spending slowdowns, Ralph Lauren benefited from untapped market potential, as only 8% of its sales come from China compared to over 20% for other global premium brands.

• The company plans further expansion in China to capitalize on this opportunity.

2. Global Expansion & Strategic Positioning

• Beyond Asia, Ralph Lauren is building on its solid sales momentum in the US and Europe.

• Executives have successfully repositioned the brand, emphasizing exclusivity and luxury, which has allowed them to raise prices, focus on premium products, and reduce discounts—a strategy that has significantly boosted profitability.

With its enhanced market strategy and performance, Ralph Lauren is well-positioned to capture sustained growth in both established and emerging markets, reinforcing its status as a leader in the premium fashion sector.