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.
Puma SE is shipping far fewer Chinese-made sneakers to the US as the trade war between the countries heats up.
The German sportswear brand is sourcing only about 10% of its US shoe imports from China now, down from 30% in the past, Chief Executive Officer Arne Freundt said in an interview. Puma is increasingly relying on suppliers in places such as Vietnam and Indonesia for the US market, he said.
The change is one of several that Puma ushered in since Donald Trump’s victory in the US presidential election in November roiled an already volatile sportswear industry. Tensions between the world’s two largest economies have escalated, with Trump slapping 10% tariffs on China and Beijing responding with its own levies and export restrictions.
Agility has become essential to navigate the uncertain trade landscape and its knock-on effects on consumer behavior, the Puma chief said. This week, he held a staff meeting to dig into consumer sentiment in the US, to discuss how rivals are responding and make sure Puma’s product sourcing teams are receiving information directly from staff on the ground.
“You need to be very close to things which are happening, and have a constant information flow, and reflect if your plans are still accurate under that environment or if you need to change things,” said the CEO.
Upbeat Forecasts
Puma is benefiting from its strategy of sourcing goods from multiple countries, Freundt said. “Other competitors may not be able to react that fast. It might lead to certain price increases.”
Even so, Puma has faced setbacks in recent months. On the day after Trump’s election in early November, it reported upbeat third-quarter results and Freundt affirmed his financial forecast for 2024. In hindsight, that was a mistake, he said.
Puma had seen strong demand in October for all sorts of products, including the soccer-inspired Palermo sneakers and Suede XL skater shoes, Freundt said. As November progressed, however, consumer demand slowed, especially in China and Latin America, where the company was already dealing with warehouse constraints.
As a result, Puma shocked investors in January when it reported preliminary fourth-quarter results that missed estimates and full-year net income that was shy of Freundt’s forecast. The company also pushed back a key profitability target by two years. Shares fell by the most in more than two decades.
It didn’t help that cross-town rival Adidas AG had reported better-than-expected results the day before, citing strong momentum across all regions and divisions.
Nor was it the first time that Freundt had surprised investors with bad news. In July 2023, he had suggested that if business continued to develop favorably Puma might raise its forecast for the year — but then it didn’t do so, angering some investors.
The 45-year-old took over as CEO in November 2022 after serving as Puma’s chief commercial officer. He has worked for the company since 2011, overseeing strategy, retail and e-commerce channels as well as the Europe, Middle East and Africa division.
Since taking the top job, Freundt has tried to give a “very realistic” financial outlook, he said. But given how volatile the industry is, he intends to alter his approach. “For me, the message is loud and clear: we need to be more cautious on communicating our expectations,” he said.
Brand Elevation
Puma announced a cost-cutting program last month that’s designed, in part, to counteract the expected drag on earnings from a stronger US dollar once its currency hedges expire in 2026.
While Puma isn’t looking to reduce headcount, Freundt sees potential for streamlining in some areas — such as material procurement or IT and logistics. “We are a growth company, but we want to grow more efficiently going forward,” he said.
Freundt insists that Puma’s new effort to elevate the brand is working. Until recently, the focus was on maximizing sales growth, even if much of that progress came from selling relatively cheap shoes and apparel. Now, Puma wants to increase its presence in higher-end channels for sports and lifestyle products, such as sneakers that sell for more than $100 a pair and help build hype.
Puma has made progress in the past year, especially with products selling at hip streetwear stores such as Kith and End., Freundt said. The company has been building buzz around the Speedcat, a thin-soled sneaker that originally debuted in 1999 and has recently appeared on the feet of celebrities like actor Jennifer Lawrence.
While Freundt may become more cautious on his financial forecasts, the CEO appears as optimistic as ever about the prospects for the Speedcat after Puma began ratcheting up supplies in preparation for a marketing blitz around the product. This approach to managing a product cycle will help Puma usher in its next era of profitable growth, the CEO said.
“What we have done the last 12 to 18 months is really to build up a new silhouette, a new trend,” Freundt said. “We are very confident that this can be one of the hottest shoes in the summer.”
Dover Street Market Paris, renowned for its strong connections with designers and textile innovators, is collaborating with Parley for the Oceans, the environmental organisation dedicated to combating plastic pollution in marine ecosystems, to introduce Parley, a new brand focused on eco-innovation in fashion.
The partnership is being described as “a bold step in transforming the fashion industry by setting new standards in eco-innovation and design,” according to Dover Street Market Paris Brand Development (DSMP-BD) and Parley for the Oceans.
Founded by Cyrill Gutsch over a decade ago, Parley for the Oceans has been at the forefront of raising awareness about ocean plastic pollution while promoting sustainable alternatives. The organisation has collaborated with artists, media, and top fashion brands like G-Star and Adidas to drive positive change. Now, with Dover Street Market and its Paris-based creative division, Parley is launching a new brand under the same name, aimed at creating the next generation of sustainable materials for the fashion industry.
“After more than a decade of fighting plastic pollution and intercepting waste across the globe, we are entering a new phase with the launch of the Parley Future Material initiative,” said Cyrill Gutsch. “This project will fund and accelerate eco-innovations aimed at replacing plastic and other harmful materials. Together with our friends and allies at Dover Street Market, a creative epicenter of the fashion world, we are launching Parley—a permanent, collaborative experiment designed to explore, celebrate, and drive forward the development of new materials.”
This long-term partnership will introduce its first products in March, ahead of the official collection launch in June.
“We are thrilled to join forces with Parley for the Oceans. Cyrill is a visionary, and his mission to restore the oceans—the heart of our planet—is crucial to our collective future,” said Adrian Joffe, CEO of Dover Street Market. “In these uncertain times, Parley’s work serves as a beacon of hope and inspiration. We are honoured and excited to contribute to this initiative.”
Milan Fashion Week Women, scheduled from February 23 to March 3, promises to be both intense and festive, with a much-renewed show calendar. A dozen labels will give the week a miss, but their absence will be offset by eight new names, like Fiorucci and K-Way, plus several emerging labels, three comebacks – Giorgio Armani, MSGM and Blumarine – as well as show-events such as Fendi’s, celebrating the Roman label’s centenary, and Dsquared2’s, celebrating the label’s 30th anniversary. Also worth mentioning, the presence of French designer Charles de Vilmorin, who will showcase his collection as part of an exchange project with the Italian Fashion Chamber (CNMI).
Fifty-five physical shows (including Emporio and Giorgio Armani both showing twice) are scheduled during the Milan womenswear week, in line with the 55 shows staged last September. In addition, on the week’s closing day, the programme includes six shows in digital format: Tokyo James, Maison Nencioni, Maxivive, Jacob Cohen, Viapiave33, and Neapolitan demi-couture label Saman Loira, for the first time on the Milan calendar. CNMI has listed 153 events in total for this womenswear week, including 65 presentations, 4 invite-only presentations, and 23 special events.
Gucci will kick off proceedings on Tuesday February 25, staging a co-ed show. A formula that many labels have adopted this season, having skipped the menswear week in January. Besides Gucci, the week’s opening day will feature Dsquared2, the label by Dean and Dan Caten, which will close the day with a show and a big party for its 30th anniversary, positioning itself, just for this once, on the womenswear calendar. Also K-Way, which used to show during the winter season’s menswear week only, has moved to the women’s week, and will stage a co-ed show celebrating its 60th anniversary, it too scheduled on the first day.
The same formula for Fendi, which will show the next day, on the evening of February 26, at its headquarters in via Solari. The show will be organised under the supervision of Silvia Venturini Fendi, creative director for the men’s ready-to-wear and accessories collections, who will also design the collection for women’s ready-to-wear, which has been without a creative director since Kim Jones left.
Among the major comebacks on the programme, that of Giorgio Armani, which showed in New York last autumn, and will be back in Milan on Sunday March 2. After skipping a season, Blumarine will make its return on Thursday February 27, under new creative director David Koma. MSGM too will return to the Milanese runways, on Saturday March 1. The label dropped out in September, having decided to show its women’s collection in June alongside menswear, to celebrate its 15th anniversary.
The week will also feature a plethora of new names. The first is Fiorucci, with Francesca Murri in charge of style, which will make its maiden appearance on the official calendar on Saturday March 1, having staged a first off-calendar show last season. Also, there will be plenty of emerging young talent, for example Francesco Murano, 27, with his structured, minimalist silhouettes and sculptural draped looks. Murano grew up near Salerno in southern Italy, alongside an embroiderer grandmother and a seamstress aunt. In 2016, he moved to Milan to study fashion design at the IED academy, and launched his first collection in 2019.
Also from southern Italy, more precisely Calabria, is Giuseppe Di Morabito, 32, who will stage his first-ever Milanese show on February 28. Di Morabito studied at the Istituto Marangoni in Milan, and founded his own label in 2014. His looks are characterised by couture lines, colours, textures, precious materials and sophisticated treatments, for a sexy, contemporary glam style that has won over many celebrities, like Lady Gaga and Zendaya. Di Morabito’s label is distributed via nearly 180 retailers, and in 2023 Italian investment fund Style Capital bought an 80% stake in it, while the eponymous designer still holds the remaining 20%.
Galib Gassanoff, 30, who partnered with Luca Lin for seven years at label Act N°1, parting ways with him in February 2023, is going solo with his new label, Institution, which will show on February 25 and defines itself as a socio-artistic project. Georgia-born Gassanoff, of Azeri language and culture, settled in Milan in 2012 through a scholarship.
On Sunday March 2, Milan will host for the first time Peruvian designer Jorge Luis Salinas, who grew up in Gamarra, home to Peru’s most important textile manufacturing hub. A graduate of the Philadelphia College of Textiles and Science, in 2016 he founded the J. Salinas label, which combines traditional expertise and technological innovation, and collaborates with craft communities in Peru. Chinese designer Susan Fang will show on the same day. She is supported by Dolce & Gabbana, and was included in the calendar last September, but decided to postpone her show to the coming winter session.
Another new feature at Milan Fashion Week will be the first collaboration between CNMI and the French Fashion and Haute Couture Federation (FHCM), aimed at giving greater visibility to one of the associations’ emerging talents. For France, Charles de Vilmorin will present his latest collection in Milan at the Fashion Hub, a space showcasing several creative projects backed by Italian fashion’s institutional bodies. For Italy, Marco Rambaldi, a knitwear specialist who regularly shows in Milan, will have the opportunity to present his work during Paris Fashion Week (scheduled on March 5-11) at Sphère, the showroom managed by FHCM and supported by French public body DEFI.
Among the notable absentees from the upcoming Milan fashion week, a prime name is Bottega Veneta, in the midst of a transition phase following the arrival of new creative director Louise Trotter, who has replaced Matthieu Blazy, now in charge of style at Chanel. She will unveil her first collection next season. Boss, which shows in Milan every other season, will be back in September. Philosophy has dropped out of the calendar, having been subsumed into Alberta Ferretti. The latter’s eponymous designer and founder has retired, ceding her place to Lorenzo Serafini, who used to be in charge of the label’s young line Philosophy, and will present his first Alberta Ferretti collection on Tuesday February 25.
Also not included in the show calendar are: Vietnamese designer Phan Dang Hoang and Chinese designer Mao Bao of the Chiccomao label, which debuted in Milan last season; Tokyo James, which has opted for a video presentation; Federico Cina, The Attico and Andreadamo, three emerging labels which showed in September; and finally, three Milan Fashion Week regulars GCDS, Del Core and Rave Review.
Milan Fashion Week will nevertheless be able to count as always on Italy’s marquee labels: on Wednesday February 26, Jil Sander, Antonio Marras, Marni and Fendi; on Thursday 27, Roberto Cavalli, Etro, Max Mara and Prada; on Friday 28, Moschino, Missoni, with new creative director Alberto Caliri, and Versace, with what is rumoured could be Donatella Versace’s last show; and on Saturday March 1, Dolce & Gabbana and Philipp Plein. Gucci will kickstart the fashion week, and Giorgio Armani will bring it to a close.