11:36 AM EDT, 08/07/2025 (MT Newswires) -- Ralph Lauren ( RL ) raised its full-year revenue outlook on Thursday as first-quarter results came in stronger than expected, although the company signaled prudence for the second half amid concerns over tariffs.

The luxury apparel maker guided fiscal 2026 revenue to increase low- to mid-single digits on a constant currency basis, compared with its prior growth estimate of low-single digits. The updated outlook factors in a foreign currency benefit of about 150 basis points to 200 basis points, the company said in a statement. Analysts polled by FactSet are projecting full-year revenue to rise to $7.45 billion from the previous year's $7.08 billion.

"While our consumer trends remain consistent with recent quarters, we continue to take a more cautious view on the second half of the year," Chief Financial Officer Justin Picicci said on an earnings call, according to a FactSet transcript. "This is largely based on the potential impact of tariffs and related industry-wide price increases in the US."

Shares of Ralph Lauren ( RL ) were down 8.4% in Thursday trade.

President Donald Trump's new tariff rates on imports from several countries took effect Thursday as the US leader's deadline for countries to strike deals expired.

Adjusted per-share earnings rose to $3.77 for the quarter ended June 28 from $2.70 a year earlier and surpassed the $3.51 consensus. Revenue grew 14% to $1.72 billion, ahead of analysts' $1.66 billion view.

"We are encouraged by our strong start to the fiscal year with first quarter results that exceeded our expectations across the top and bottom line," Chief Executive Patrice Louvet told analysts on the call. "Despite macro headwinds, we remain well positioned and we are on offense based on our continued commitment to invest behind our brands and market share gains."

Sales rose 8% in North America to $656 million, while Europe and Asia revenue jumped 16% and 21%, respectively. Comparable store sales increased 12% in North America, 10% in Europe and 18% in Asia.

For the second quarter, Ralph Lauren ( RL ) expects revenue to grow by a high-single digit.

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