11:11 AM EDT, 05/22/2025 (MT Newswires) -- Ralph Lauren ( RL ) reported better-than-expected fiscal fourth-quarter results and projected revenue growth in the ongoing fiscal year, while Chief Financial Officer Justin Picicci said the luxury apparel maker is assessing pricing actions to offset the potential impact of tariffs.

Revenue is anticipated to rise by roughly low single digits year over year in constant-currency terms for fiscal 2026, with growth weighted in the first half, according to the company. The current consensus on FactSet is for sales of $7.34 billion on a reported basis. In fiscal 2025, revenue rose 7% and 8% on reported and constant-currency bases, respectively, to $7.08 billion and $7.15 billion.

"We believe it is prudent to take a more cautious view on the second half of the year based on a number of macro indicators, notably the impact of tariffs, weakening consumer confidence in the US and increased risk of a broader consumer pullback, and a more uncertain global operating environment in general," Picicci said during an earnings call, according to a FactSet transcript.

US President Donald Trump announced sweeping new import tariffs in early April, but later declared a 90-day pause on certain duties for non-retaliating countries. Recently, the US and China agreed to suspend most duties on each other's goods for a period of 90 days, while Washington reached a trade deal with the UK.

Ralph Lauren ( RL ) is evaluating additional pricing actions to offset the potential impact of evolving tariffs, according to Picicci. The company has a "proven toolkit" to manage cost inflation headwinds, such as significant supply chain diversification, the CFO said on the call.

"While tariffs are expected to be a headwind, we are better positioned than ever before with greater agility to mitigate related pressures with a more elevated, less price sensitive customer base," Picicci told analysts.

The company posted adjusted earnings of $2.27 per share for the quarter ended March 29, up from $1.71 the year before, topping the Street's view for $2.04. Revenue climbed 8% to nearly $1.7 billion, surpassing the average analyst estimate of $1.65 billion, despite a roughly 210-basis-point foreign-currency headwind.

"We reported fourth-quarter results that exceeded our expectations on both the top and bottom line," Chief Executive Patrice Louvet said on the call. "This strong performance was broad based, driven by every geography and channel."

Sales rose 6% in North America to $704.7 million, while Europe and Asia logged gains of 12% and 9%, respectively. Comparable store sales increased 9% in North America, 18% in Europe and 15% in Asia.

For the ongoing three-month period, Ralph Lauren ( RL ) expects revenue to grow by around high single digits on a constant-currency basis year over year with a "roughly minimal" foreign-currency headwind. The Street is looking for sales of $1.59 billion. The quarter will be "marginally" impacted by tariffs, according to Picicci.

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