Ralph Lauren is raising prices—a belated and, perhaps, unwelcome move for many of its loyal customers. Announced just last week, the decision is a direct response to the lingering import tariffs introduced by the Trump administration, which have proven broadly damaging for American businesses.
In an effort to offset mounting costs, the brand now plans to increase prices more aggressively than initially projected, on top of hikes already scheduled for this fall and next spring. “We have been working for years to shift our customer base toward those less sensitive to pricing,” said Chief Financial Officer Justin Picicci during a recent call with analysts.
Notably, this pricing pivot comes at a time when Ralph Lauren is actively reshaping its brand identity. Once synonymous with accessible luxury, the company is now leaning into a more premium positioning. This strategic shift has already paid off in the latest fiscal quarter, but with inflation and tariffs tightening margins, the pace—and size—of price hikes are accelerating.
Looking ahead, Ralph Lauren’s evolving pricing strategy may prove critical in defining both customer loyalty and long-term brand equity. As new collections debut with steeper price tags, many fans are left wondering: will the Polo Bear and Purple Label still feel worth the investment?
Ralph Lauren Prices Rise Sharply Amid Tariff Pressures
Ralph Lauren joins dozens of major retailers in significantly raising prices due to Trump’s tariffs. pic.twitter.com/EIUp40Dqv4
— Matt McDermott (@mattmfm) May 22, 2025
Ralph Lauren prices are on the rise once again—and this time, it’s more than just a routine seasonal adjustment. Faced with mounting costs and the ongoing strain of U.S. tariffs, particularly on goods imported from China, the American fashion giant is doubling down on aggressive pricing changes. Executives confirmed that increases initially planned for the fall and spring collections will now exceed earlier projections.
According to CEO Patrice Louvet, the company is “assessing additional pricing actions” to mitigate the long-term impact of evolving tariffs. The new strategy will impact both North American and Asian markets, regions that not only drive strong sales but also bear the brunt of tariff-related costs. As global economic pressures continue to reshape the luxury landscape, Ralph Lauren is clearly recalibrating its playbook.
A Strategic Shift Toward Wealthier Consumers
Rather than absorb these mounting expenses, Ralph Lauren is doubling down on its long-term strategy: courting a more affluent, price-resilient customer base. CFO Justin Picicci underscored the company’s intentional pivot toward shoppers who are less sensitive to rising costs—a move that fits squarely within Ralph Lauren’s broader effort to reposition itself as a true luxury lifestyle brand. By stepping away from the mid-tier segment, where profit margins are thinner and price sensitivity runs higher, the brand is betting big on exclusivity.
So far, the bet appears to be paying off. For the quarter ending March 29, 2025, Ralph Lauren posted a profit of $129 million—up from $90.7 million during the same period last year. Revenue rose 8% to $1.7 billion, powered by both higher price points and a more strategically curated product mix. Even better, a dip in cotton prices helped ease some of the pressure from tariffs, offering a modest but meaningful buffer.
Ralph Lauren’s Global Strategy and Supply Chain Shifts
U.S. manufacturers such as Walmart, Ralph Lauren and Nike are considering lifting prices in their home market to cover the costs of tariffs on Chinese imports imposed by President Donald Trump.https://t.co/fxuwfYtlac
— Nikkei Asia (@NikkeiAsia) May 27, 2025
While Ralph Lauren is synonymous with American heritage, its operations are decidedly global. In fact, roughly 96% of its products are manufactured outside the United States, with only a small fraction sourced from China. Yet, even this limited exposure to Chinese imports subjects the brand to U.S. tariff regulations, meaning that no part of its supply chain is completely immune from trade-related cost pressures.
In response, Ralph Lauren is actively reshaping its supply chain to reduce reliance on high-tariff regions. The company is exploring alternative sourcing options and developing regional manufacturing hubs to diversify production. Though these behind-the-scenes adjustments may not be immediately apparent to customers, they underscore the increasing complexity of sustaining profitability amid an unpredictable and often volatile global trade landscape.
What Shoppers Can Expect Going Forward
For longtime fans who remember Ralph Lauren’s once more approachable price tags, the recent hikes may come as a surprise. Whether it’s a classic Polo shirt, a pair of chinos, or a coveted piece from the Purple Label collection, customers should expect noticeably steeper prices in upcoming seasons. This shift risks making Ralph Lauren less accessible to its traditional middle-income base—shoppers who have long regarded the brand as an attainable form of luxury.
At the same time, Ralph Lauren is doubling down on marketing and brand elevation efforts, carefully crafting a narrative that justifies these higher price points through enhanced perceived value. If this strategy pays off, the brand could firmly establish itself within the high-end luxury market, positioning itself to compete more directly with prestigious European maisons.
The Road Ahead for Ralph Lauren
Ralph Lauren’s price increases aren’t simply a reaction to rising costs—they represent a broader transformation. As the brand grapples with tariffs, inflation, and shifting consumer preferences, pricing has become a crucial lever for driving profitability and sustainable growth. The company projects modest revenue gains in the low single digits for fiscal 2026, reflecting a cautious outlook amid ongoing economic uncertainty.
Yet despite these headwinds, Ralph Lauren remains optimistic. Its diverse portfolio—from the accessible Polo line to the ultra-luxurious Purple Label—continues to resonate with both longtime loyalists and a new generation of shoppers who prioritize style and brand prestige over bargain hunting.
In the fast-changing world of luxury retail, Ralph Lauren is clearly positioning itself for long-term relevance and success. Ultimately, however, consumers will have to decide if the iconic logo justifies the premium price tag.
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