Ralph Lauren raises annual forecasts on resilient luxury demand

Nov 5 (Reuters) - Ralph Lauren RL.N raised its annual revenue and profit margin forecasts, betting that strong demand from younger shoppers in North America and Asia will help the high-end brand continue to buck the trend of a broader luxury slowdown.

The company has outperformed the wider luxury sector in recent quarters as higher-income US shoppers keep spending on cable-knit sweaters and Polo shirts. China has emerged as a growth engine, with revenue up 35% in the second quarter.

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Ralph Lauren now expects fiscal 2027 revenue to rise in the mid- to high-single-digit range, centered around 6% to 7%, compared with its prior forecast for growth centered around 5% to 6%.

It expects annual operating margin to grow about 80 to 100 basis points on a constant-currency basis, compared with its previous forecast of 60 to 80 basis points.

Quarterly revenue rose 9% to $2.19 billion, above analysts' estimate of $2.12 billion, according to data compiled by LSEG.

Founded by designer Ralph Lauren in 1967, the company launched a turnaround plan about a decade ago when it hired its first outside CEO. It has improved sales by focusing more on higher-priced apparel and updating its product range.