This Luxury Brand Stock With 70% Gains In 12 Months Tumbled On Thursday, CFO’s More Cautious On Second Half Of 2025: Do You Own It?

Ralph Lauren (RL) CFO Justin Picicci said on Thursday that the luxury apparel maker is taking a more cautious view on the second half of the year, primarily based on the potential impact of tariffs and related industry-wide price increases in the U.S.

CEO Patrice Louvet added, “We're still assuming a cautious outlook for the second half based on a number of drivers, interest rates to consumer confidence, and reaction to price inflation.”

Shares of Ralph Lauren were down nearly 8% during midday trading. Retail sentiment on the stock remained unchanged in the ‘bullish’ territory, with chatter at ‘normal’ levels, according to data from Stocktwits.

“North America maintained healthy trends, up high single digits with strength across DTC channels and stabilization in wholesale as planned,” Louvet added.

Ralph Lauren now expects fiscal 2026 revenue to increase in the low-to-mid-single digits, compared with the prior forecast of about a low-single-digit rise. “The company continues to meaningfully grow its customer base, led by younger, female, and less price-sensitive cohorts,” Dana Telsey of Telsey Advisory Group said.

Ralph Lauren’s first-quarter net revenue came in at $1.72 billion, compared with Wall Street expectations of $1.65 billion, according to data compiled by Fiscal AI. Its adjusted profit of $3.77 per share topped estimates of $3.50.

A bearish user on Stocktwits noted that after a strong stock price surge, Wall Street was expecting much better guidance than was given.

Ralph Lauren’s stock has gained 22% so far this year and jumped over 74% in the last 12 months.

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