gs increased 22 per cent to $4.59 per share. DTC sales increased 12 per cent, driven by digital and brick-and-mortar sales, while wholesale rose 13 per cent on “healthy underlying demand”. The company also added 1.5 million new consumers through its DTC businesses and more than 70 million new social media followers across Instagram, Line, Douyin and Tiktok. Investors liked what they saw. Ralph Lauren’s shares shot up 20 per cent following the results, while the company raised its full-year revenue outlook to around 5-6 per cent, from 4-5 per cent previously. “We are off to a strong start in the second year of our Next Great Chapter: Drive plan, with broad-based performance across geographies, channels and consumer segments in the first quarter,” Ralph Lauren president and CEO Patrice Louvet said. What experts have to say about Ralph Lauren’s results Neil Saunders, managing director at Globaldata, told Inside Retail that Ralph Lauren’s brand heat remains red hot. “Not only is revenue growth punchy, but the gains being made are high-quality sales that are supporting better margins and a very strong uplift of 19 per cent on the bottom line,” he said. Saunders acknowledged a few wrinkles in the numbers, including earlier wholesale shipments that flatter growth. Even without these, however, the figures represented a highly convincing performance and another vindication of management’s strategy. “Part of this growth is driven by the position of the brand, which offers classic pieces that can be worn for everyday purposes, for more formal occasions, or even for very casual moments. In the mind of the consumer, the ability to wear products extensively equates to good value for money – even if price points are higher than midmarket brands. This position is further enhanced by the quality of the garments and the fact that many are timeless and so won’t suddenly go out of style.” At the same time, Saunders explained, Ralph Lauren knows how to introduce enough newness and statement pieces to keep consumers interested without disrupting the essence of the brand. The gentle expansion of categories like accessories has also been important, both for increasing share of wallet and for driving up margins. Ralph Lauren has spent the past five or so years creating a more disciplined and focused range, but it now arguably has a much broader lifestyle position, attracting both more consumers and a greater share of their spending. That broader base includes younger shoppers, who are highly engaged with the brand thanks to its social media efforts. Current trends around nostalgia and more structured formal styles are also helping to build Ralph Lauren’s appeal among younger consumers, as are the capsule collections the brand has created for this audience. “Ralph Lauren now has a long run of impressive uplifts, and it will start lapping some tough prior-year numbers in the year ahead. As such, growth may come down to the mid-single-digit level. However, this remains highly respectable and reflects the fact that Ralph Lauren continues to deliver the mix of quality, fashion and style that consumers want,” said Saunders. Keeping a legacy brand relevant for Gen Z Frankie Margotta, strategy director at consulting firm Triptk, argued that part of Ralph Lauren’s success comes from its ability to hold on to its core brand tenets while keeping things fresh for younger shoppers. “Ralph Lauren is an American icon,” he said. “That said, the brand didn’t engineer the quarter-zip trend or the resurgence of preppy Americana, but it was ready when those moments arrived. The discipline on returning to and modernizing the world and sensibilities that made it popular in the first place is what allows Ralph Lauren to capitalize when culture trends in its direction, but it’s also what sustains the brand when it inevitably falls out of the hype cycle.” Margotta also credited the brand’s current success to its ability to balance high-end, aspirational products with more accessible items. “By design, Ralph Lauren has always operated between accessible premium and true luxury. That makes its brand equity and design codes critically important. Many of the visible products and aesthetics can be imitated by more affordable alternatives, but the meaning, credibility and lifestyle built around them are far harder to reproduce. “A major factor behind the company’s recent growth has been rebuilding prestige into both the brand and its products. The hard work they’ve done to pull back on discounting, reduce lower-tier distribution, and tighten assortments has kept Ralph Lauren accessible without allowing it to become ubiquitous or omnipresent.” While these decisions created some short-term volume pressure and even losses, they also concentrated attention on Ralph Lauren’s core products and proposition, resulting in stronger full-price selling and higher average unit retail. “The brand can remain relevant to aspirational consumers buying entry-level and core products while still serving high-net-worth customers through Purple Label and its other top-end offerings. Both groups matter a lot to Ralph Lauren’s positioning. Wealthy consumers drive sales, but they also help validate the brand’s luxury credentials and create a halo around the wider portfolio.” Margotta cautioned that Ralph Lauren’s continued success will depend on maintaining that focus while staying agile enough to respond to the market and experiment with new codes and signals. “The efforts need to connect meaningfully to who Ralph Lauren is and what the brand stands for. Provided the company maintains its discipline and resists overextending, I’d bet on the brand’s positive momentum to continue.” How Ralph Lauren can keep momentum Like Margotta, Barney Stacher, CEO of consultancy Retail OCD, credited Ralph Lauren with its ability to balance new trends with classic brand pillars. “Ralph Lauren is benefiting from a clarity that many heritage brands have lost. It has modernized the brand’s expression without abandoning the distinctive American lifestyle that gives it meaning. That consistency helps Ralph Lauren attract younger consumers while retaining the customers who already know and trust it.” Stacher also noted that Ralph Lauren’s growth has been well balanced. North America remained strong, growing 14 per cent on a reported basis in the past quarter, while Asia – particularly China – accelerated, with reported growth of 24 per cent. The company also gained customers across both direct-to-consumer and wholesale channels. He pointed out that the company’s range of accessible Polo products, elevated collections and growing categories such as womenswear, handbags and home provides multiple points of entry without making the brand feel fragmented. “To sustain the momentum, Ralph Lauren should continue investing in product quality, disciplined distribution and culturally relevant marketing rather than chasing short-lived trends. There is considerable room to grow internationally and in underdeveloped categories, but expansion must remain selective. The company’s greatest asset is the coherence of the Ralph Lauren world, and every new product, partnership and retail experience should strengthen it,” said Stacher. Further reading: Ralph Lauren sales surge as online and stores shine