By region, Asia led growth for the quarter. China sales remained strong, Louvet told investors, increasing more than 35%, while Japan and Korea were also up double digits, which he credited to continued investment in localized brand activations and experiences. (The brand recently hosted PoloFest in Tokyo, though the impact of this will be seen in Q3.)
Louvet attributed Europe’s slower growth (up 3% vs 5% in Q1) to the prior year’s strong comparison base, coupled with industry headwinds. CFO Justin Picicci also flagged weaker store traffic in key European markets. North America’s growth beat expectations. “I would argue that we’re actually in the very early innings of our elevation journey in North America, with significant growth opportunities across the region, particularly in the West Coast” Louvet added.
The full-year outlook raise is a result of the quarter’s better-than-expected results, while this morning’s shares decline was down the company’s lowered Q3 projections. “We continue to expect first-half [2027] growth to be stronger than second-half growth, reflecting the timing of this year’s marketing activations and other investments, the timing of planned wholesale shipment shifts and strategic off-price reductions, and more challenging year-over-year comparisons in certain of our key markets,” Picicci said on Thursday’s call.
“As we turn to holidays, we will continue inviting consumers to step into the cinematic worlds that Ralph created with timeless high-quality products and a compelling value proposition,” Louvet said, noting that last year’s trending ‘Ralph Lauren Christmas’ is already back for 2027. “Ralph Lauren Christmas is trending again this year, emerging organically as consumers celebrate and share their love for Ralph Lauren’s iconic products, particularly the bear product in our home collection.”
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