Ralph Lauren (NYSE:RL) reported a powerful third-quarter beat on Thursday, as the luxury brand’s "premiumization" strategy—centered on higher prices and reduced discounting—drove record holiday sales across all global regions.
The New York-based fashion house posted revenue of $2.41 billion, a 12% increase (10% in constant currency) that significantly outperformed the $2.32 billion analyst consensus.
Adjusted earnings reached $6.22 per share, surging past the $5.80 expected by the Street.
The results were fueled by an 18% jump in Average Unit Retail (AUR), reflecting Ralph Lauren’s success in attracting younger, more affluent consumers who are willing to pay full price for core items like sweaters, knit tops, and high-growth accessories.
Asia remained the company's primary growth engine, with revenue in the region rising 22%.
Sales in China were particularly robust, jumping more than 30% behind a strong Singles' Day and early Lunar New Year demand.
North America and Europe also displayed resilience, growing 8% and 4% respectively, despite a broader slowdown in the luxury sector.
The company’s focus on high-potential categories like women’s apparel and handbags paid off, with those segments growing at nearly double the company average.
Following the strong holiday performance, CEO Patrice Louvet raised the company’s full-year fiscal 2026 outlook.
Ralph Lauren now expects constant currency revenue to increase in the high-single to low-double digits (up from the previous 5%–7% range).