Ralph Lauren stock jumps as Q2 results top estimates, outlook raised

Investing.com -- Ralph Lauren Corporation (NYSE: RL) saw its shares surge 5.75% after the luxury lifestyle brand reported better-than-expected second-quarter results and raised its full-year outlook, signaling strong consumer demand and successful brand elevation strategies.

The company posted adjusted earnings per share of $2.54, surpassing analyst estimates of $2.40. Revenue for the quarter came in at $1.7 billion, beating the consensus forecast of $1.68 billion and representing a 6% increase both on a reported and constant currency basis.

Global direct-to-consumer comparable store sales grew 10% YoY, driven by positive retail performance across all regions. The company's focus on brand elevation was evident in the 10% increase in average unit retail prices across its direct-to-consumer network.

"Our strong business performance across every geography this quarter underscores the resilience of our diversified growth drivers and our elevated consumer base," said Patrice Louvet, President and CEO.

Ralph Lauren (NYSE:RL ) raised its full-year fiscal 2025 outlook, now expecting constant currency revenues to increase 3% to 4%, up from previous guidance. The company also anticipates operating margin expansion of 110 to 130 basis points in constant currency.

For the third quarter, Ralph Lauren projects constant currency revenue growth of 3% to 4%, with operating margin expected to expand 100 to 140 basis points.

The company maintained a healthy balance sheet with $1.7 billion in cash and short-term investments. It has returned approximately $375 million to shareholders through dividends and share repurchases fiscal year-to-date.

Source: Investing.com