Ralph Lauren (RL, Financial), the luxury clothing brand from the United States, drew attention due to claims of a staggering 95% return rate during an e-commerce shopping event. Reports indicated that the brand achieved a GMV (Gross Merchandise Volume) exceeding 16 billion yuan. However, many consumers leveraged return policies to benefit from discounts, purchasing additional items to meet reduction thresholds and then returning them.
This strategy allowed consumers to purchase desired goods at reduced prices. As a result, Ralph Lauren's products were frequently added to carts for reaching discount criteria and then immediately refunded after securing the deal. The brand's prompt refund process contributed to its use in such transactions.
A public relations executive from the e-commerce platform responded to these claims, stating that Ralph Lauren's flagship store showed strong performance during the event, with significant growth in confirmed transaction amounts, a rise in returning customer rates, and an increase in followers. The executive disputed the reported return rate, emphasizing the lack of verified investigations into these claims.
One consumer detailed how they added a Ralph Lauren item, priced over 4,000 yuan, to their cart to qualify for a discount on other purchases, subsequently returning the high-priced item. This tactic has been widely discussed online, with some even sharing detailed guides on maximizing discounts through such methods.
In its financial results for the second quarter of fiscal 2025, Ralph Lauren reported net revenue of $1.7 billion, a 6% year-over-year increase, with operating profit at $179 million and a 10.4% operating profit margin. Cumulative revenue for the first half of 2025 reached $3.238 billion, with net profit rising 13.44% to $317 million compared to the same period last year.
