(Reuters) -Ralph Lauren raised its annual revenue forecast on Thursday, signaling robust demand from affluent shoppers for its Polo shirts and cable-knit sweaters in North America, Europe and Asia.
Shares of the apparel maker rose 2% in premarket trading as it also beat first-quarter revenue and profit expectations.
Ralph, which sells its popular Polo Bear sweater for up to $398 on its website, has relied on its loyal, high-income customers to fuel sales and profit growth.
The company’s strategy to ramp up marketing spend and product innovation, as well as reduce promotions have helped it gain market share in its core categories such as knitwear and handbags.
Its upbeat forecast is in contrast to bigger European rivals including Gucci-owner Kering and Dior-parent LVMH, which have seen a sales slowdown in their most recent quarter.
Ralph Lauren CEO Patrice Louvet said the company remains cautious about the current global operating environment in the back half of the fiscal year.
It expects fiscal 2026 revenue to rise low- to mid-single digits from last year, compared with its prior target of a low-single digits increase.
It forecasts operating margin to expand roughly 40 to 60 basis points after adjusting for currency fluctuations, up from its prior forecast of a modest growth.
The company said the forecast accounts for inflationary pressures, tariffs and global supply chain disruptions, among other factors.
Net revenue in the first quarter came in at $1.72 billion, exceeding expectations of $1.66 billion, according to data compiled by LSEG.
On an adjusted basis, it earned $3.77 per share, above estimates of $3.50.
(Reporting by Savyata Mishra in Bengaluru; Editing by Arun Koyyur)
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