5 Must-Read Analyst Questions From Ralph Lauren’s Q2 Earnings Call

August 14, 2025 at 01:32 AM EDT

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Ralph Lauren's second quarter results saw the company outperform Wall Street's revenue and profit expectations, yet the market responded negatively. Management attributed the quarter’s success to robust international growth—especially in Asia and Europe—along with strong direct-to-consumer sales and new customer acquisition. CEO Patrice Louvet highlighted brand elevation and digital engagement as key drivers, noting, “We delivered double-digit top line growth in both Asia and Europe, and high single-digit growth in North America.” Despite these strengths, ongoing macroeconomic volatility and potential cost pressures weighed on investor sentiment.

Is now the time to buy RL? Find out in our full research report (it’s free).

Ralph Lauren (RL) Q2 CY2025 Highlights:

Revenue: $1.72 billion vs analyst estimates of $1.66 billion (13.7% year-on-year growth, 3.6% beat)
Adjusted EPS: $3.77 vs analyst estimates of $3.50 (7.8% beat)
Adjusted EBITDA: $348.4 million vs analyst estimates of $328.4 million (20.3% margin, 6.1% beat)
Operating Margin: 15.9%, up from 13.8% in the same quarter last year
Locations: 1,234 at quarter end, down from 1,262 in the same quarter last year
Constant Currency Revenue rose 11.4% year on year (2.8% in the same quarter last year)
Same-Store Sales rose 9.2% year on year (3.1% in the same quarter last year)
Market Capitalization: $18.3 billion

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Ralph Lauren’s Q2 Earnings Call

Matthew Robert Boss (JPMorgan): Asked about the sustainability of recent growth drivers and the outlook for consumer demand in the second half. CEO Patrice Louvet stated that core brand strength, product breadth, and key city expansion are durable, but maintained a cautious view on consumer sentiment due to inflation and tariffs.
Jay Daniel Sole (UBS): Questioned the rationale behind raising guidance and the outlook for tariffs. CFO Justin Picicci explained that guidance was raised due to broad-based outperformance, with tariff assumptions largely unchanged and ongoing active management of related headwinds.
Michael Charles Binetti (Evercore ISI): Sought details on geographic and channel momentum, particularly in Europe and North America. Picicci highlighted that DTC and international markets are expected to continue leading growth, while North America will face increased pricing and inflation pressure.
Dana Lauren Telsey (Telsey Advisory Group): Asked about channel performance in North America, China acceleration, and pricing actions. Picicci described strong comps across both full-price and outlet stores, with digital sales boosted by site enhancements. Louvet noted China is a major growth priority, driven by marketing, new product launches, and digital engagement.
Paul David Kearney (Barclays Capital): Inquired about inventory growth and tariff-related strategies. Picicci clarified that inventory increases were largely strategic, tied to tariff anticipation, and expects levels to moderate in line with sales as the year progresses.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be monitoring (1) consumer response to price increases and tariffs in North America, (2) the pace of international expansion and new market entries, particularly in China, and (3) the effectiveness of investments in digital platforms and supply chain automation. Continued innovation in product categories and the ability to sustain gross margin gains despite cost pressures will also be critical markers of successful execution.

Ralph Lauren currently trades at $302.14, in line with $302.96 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).

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5 Must-Read Analyst Questions From Ralph Lauren’s Q2 Earnings Call

Ralph Lauren (RL) Q2 CY2025 Highlights:

Our Top 5 Analyst Questions From Ralph Lauren’s Q2 Earnings Call

Catalysts in Upcoming Quarters

The Best Stocks for High-Quality Investors

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