Ralph Lauren cautioned on Thursday that tariff-related costs would pressure its margins this year and said it was bracing to see how inflation was weighing on price-sensitive consumers, sending its shares down 7 per cent.

The comments overshadowed a rise in its annual revenue forecast, which was powered by solid demand for its Polo shirts and cable-knit sweaters in North America.

“The most meaningful offset is really the incremental cost inflation from the tariffs,” CEO Patrice Louvet said on a conference call with analysts.

“The bigger unknown here today is the price sensitivity and how the consumer reacts to the broader pricing environment and how sensitive that consumer is. So that’s what we’re watching very closely as we head into the second half.”

Ralph Lauren, which sells its pop

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