Ralph Lauren reports strong Q3 earnings, exceeding expectations

Ralph Lauren Corporation (NYSE:RL) today announced robust financial results for its fiscal third quarter, ending December 28, 2024, surpassing market expectations.

The company reported an 11% increase in revenue, fueled by strong holiday sales performance across all regions.   

Gross profit reached $1.5 billion, with a healthy gross margin of 68.4%.

Net income for the quarter totaled $297 million, translating to $4.66 per diluted share.

Additionally, Ralph Lauren saw significant growth in its global direct-to-consumer business, with sales up 12%.

A resurgence in North American wholesale sales also contributed to the overall positive results.

During the quarter, operating income rose to $390 million, representing an 18.7% margin on an adjusted basis, significantly exceeding previous forecasts.

The company's strong financial position is further highlighted by its $2.1 billion in cash and short-term investments, against $1.1 billion in total debt.