(Reuters) – Ralph Lauren raised its annual revenue forecast on Thursday, betting on more younger shoppers picking up its spring collection of dresses, skinny cuffed trousers and floral dinner jackets.
Shares of the apparel maker rose 8% in premarket trading.
Unlike European fashion houses LVMH, Hugo Boss and Kering, Ralph Lauren has enjoyed strong demand as efforts to invest in brands such as Polo and Purple Label helped pull in wealthy shoppers, especially from the younger demographic.
Ralph Lauren has also posted strong sales in China over the past nine quarters, as an e-commerce expansion on the Douyin platform and the opening of full-price stores boosted demand for its clothing.
China accounts for about 8% of the company’s total sales.
Demand at Ralph Lauren’s direct-to-customer channels also remained robust, driven mainly by full-price sales, while its wholesale business is starting to recover in North America following muted growth for several quarters.
The company now expects 2025 revenue to increase between 6% and 7%, compared with its prior forecast for a 3% to 4% rise.
Its third-quarter sales rose to $2.14 billion from $1.93 billion a year earlier, compared with analysts’ estimates of $2.01 billion, according to data compiled by LSEG.
(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Devika Syamnath)
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