WOW STORY OF THE DAY: Ties to Triumph: How Ralph Lauren’s $6.5B Pivot Conquered Courts and Catwalks

Updated: December 06, 2025 20:00

Image Source: Business of Fashion

Ralph Lauren, once famed for a single tie, has grown into a $6.5B global empire. In 2025, its fastest growth came not from couture but sports collaborations, with Olympic and tennis partnerships fueling 35% YoY growth. The brand’s bold pivot shows how luxury can dominate stadiums as well as runways.

Ralph Lauren’s journey from a humble tie designer to a $6.5 billion fashion powerhouse is a testament to reinvention. In fiscal 2025, the company reported 7% revenue growth to $7.1B, exceeding expectations despite a challenging retail environment.

While Ralph Lauren remains synonymous with timeless luxury, its boldest pivot has been into sportswear and lifestyle collaborations. The brand’s partnerships with the Olympics, Wimbledon, and U.S. Open tennis have unlocked millions in new sales, driving 35% growth in sportswear categories. This strategy has allowed Ralph Lauren to expand beyond couture into performance-driven apparel, capturing a younger, global audience.

CEO PatriceLouvet emphasized that the company’s “Next Great Chapter: Drive” strategy is focused on sustainable growth, lifestyle diversification, and global expansion. By blending luxury aesthetics with sports functionality, Ralph Lauren has positioned itself as both a fashion icon and a lifestyle brand.

The company also reported strong regional performance: Europe grew 12% YoY, while China surged more than 20%, highlighting the brand’s global resonance. Direct-to-consumer sales rose 13% in Q4, showing the strength of Ralph Lauren’s pricing power and consumer loyalty.

Key Highlights & Notable Updates

Revenue Growth: Fiscal 2025 revenue rose 7% to $7.1B, beating forecasts.
Sportswear Surge: Olympic + tennis partnerships fueled 35% YoY growth in sportswear.
Global Expansion: Europe up 12%, China up 20%, Asia overall up 9%.
Consumer Strength: Direct-to-consumer comparable sales rose 13% in Q4.
Strategic Outlook: “Next Great Chapter: Drive” plan targets mid-single-digit CAGR through 2028.
Lifestyle Diversification: Fastest growth now comes from sportswear and collaborations, not couture.

Closing Note

Ralph Lauren’s reinvention proves that luxury isn’t confined to runways. By betting on sports collaborations and lifestyle apparel, the brand has conquered stadiums and expanded its empire. From a single tie to a global powerhouse, Ralph Lauren shows how bold pivots can redefine legacy brands for the modern era.

Sources:Ralph Lauren FY 2025 Earnings Results, BusinessWire, Fashion Dive

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