How Luxury Fashion Brands are Navigating Sales in 2025

Ralph Lauren have reported that their sales have increased by 8% in 2025, with the company generating $7.1 billion. Their gross margin is also at 68.8%, which is a solid increase from 66.6% last year. Part of their profitability comes from the fact that they are hosting more sales than other fashion brands, but at the same time, not diluting their exclusive place in the market.

Latest reports show that Ralph Lauren had the biggest increases in discounted stock, with other brands like Alexandre Vauthier and Roland Mouret being hot on their heels.

The Importance of Luxury Brands and Sales

Luxury brands face a challenge, as discounting is a way to get more sales, but at the same time, putting on too many sales can dilute the exclusivity of a brand. Luxury fashion brands also emit aspiration. The moment a brand becomes too accessible, it’s no longer luxury. Strategic and controlled discounting is the way to go here.

Rather than slashing prices, smart fashion brands are now looking into private sales for loyal customers, as well as hosting seasonal clearances that align with the natural cycle of fashion. This is something that Ralph Lauren, in particular, does very well. Off-price platforms and outlets also play a big part in fashion, as they allow for broader access.

Fashion brands, in particular, also have certain ranges that are designed to be at a lower price point. Armani Exchange and the University Polo Collection are both more affordable tiers, which help the brand to offer more accessible products while keeping the exclusivity of their core lines.

Exploring the Use of Strategic Discounts

Approaches like this aren’t limited to fashion, either. They’re all around us. Luxury hotels often use off-season discounts and loyalty programs as a way to attract new customers without affecting the perceived standard of their offerings. High-end restaurants also have fixed menus for a lower price, as it allows them to cater to certain demographics without lowering the value of their main menu items.

Within the tech world, Apple often gives customers the chance to trade in their current device for money off their new phone, but at the same time, rarely host sales. Another example would be the casino sector. Casinos often host promotions, whether it is a deposit match or a slot bonus. Promotions like this often offer free spins to new sign-ups, providing a way for people to experience the platform while building brand familiarity.

Offers like this are often capped with wagering requirements to ensure that people get a snapshot of the experience, with the option to deposit to continue playing. As the digital age means that people can compare products, sales, and prices within just a few clicks, brands have to remain agile. Sales and promotions have to be guided by data, ensuring brand integrity by attracting new users without compromising the value of the experience.