Ralph Lauren: Demand From High-End Consumers Will Support Price Increases

Luxury lifestyle products firm Ralph Lauren plans to raise prices to cover the cost of tariffs, saying the demand it is seeing from its high-end customers will support the move.

“We are assessing additional pricing actions for fall 2025 and spring 2026 to mitigate the potential impact of evolving tariffs,” Ralph Lauren Chief Financial Officer Justin Pacicci said Thursday (May 22) during the company’s fourth-quarter earnings call. “This is on top of the proactive pricing we already planned for 2025 in North America and Asia.”

The company has grown its average unit retail (AUR), or average selling price per unit, every quarter for the past eight years, while also increasing its luxury and value perceptions, and it expects that trend to continue, Pacicci said. In the current quarter, that means an increase in AUR that’s in high single-digits compared to the previous year.

Ralph Lauren President and CEO Patrice Louvet said during the call that the company has grown its AUR by elevating its brand and quality; changing its geographic, channel and category mix; reducing discounts; and selectively raising prices.

“These multiple drivers give us confidence as we continue to manage through cost headwinds with strong pricing power,” Louvet said.

While the company cautioned that there is weakening consumer confidence in the United States and a growing risk of a broader consumer pullback, the executives added that Ralph Lauren’s consumers remain resilient.

“When it comes to our core consumer, which as you know are more elevated consumers, they have remained resilient…,” Louvet said during the call. “We have not seen a change in the underlying trajectory of any of our three regions — APAC, EMEA or North America — and our full-price sales continue to grow at a healthy pace.”

The remarks came a day after it was reported that luxury conglomerate LVMH told investors and analysts that demand remains soft due to weaker consumer confidence in China and other markets.

On Friday (May 16), it was reported that luxury group Richemont will continue to limit its price increases, even in the face of new U.S. tariffs, to avoid the customer backlash some of its rivals have seen after raising prices.