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Ralph Lauren Reports Strong Third Quarter Fiscal 2026 Holiday Results, Ahead of Expectations, and Raises Full Year Outlook

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  • Ralph Lauren reported third-quarter Fiscal 2026 revenue of $2.4 billion, a 12% increase on a reported basis and 10% in constant currency, exceeding expectations.
  • Earnings per diluted share reached $5.82 reported and $6.22 adjusted, representing 25% and 29% growth respectively compared to the prior year.
  • Global direct-to-consumer comparable store sales grew in the high-single digits, driven by balanced expansion across physical stores and digital channels.
  • Wholesale sales increased in the double-digits globally, with North America wholesale up 11% and Europe wholesale up 16% on a reported basis.
  • Asia emerged as a key growth driver with revenue surging 22% in both reported and constant currency terms, while Europe grew 12% reported and North America grew 8% reported.
  • Adjusted gross margin expanded to 69.9% and operating margin to 20.9% adjusted, outperforming outlooks despite increased tariffs and marketing investments.
  • Average unit retail prices increased 18% across the direct-to-consumer network, reflecting strong full-price selling trends and reduced promotional activity.
  • The company added 32 new owned and partnered stores in key cities including Chengdu, Sydney, Bangkok, London, and New Delhi.
  • Ralph Lauren maintained a strong balance sheet with $2.3 billion in cash and short-term investments, alongside well-positioned inventory levels.
  • Approximately $500 million was returned to shareholders year-to-date through dividends and Class A common stock repurchases.
  • The company raised its full-year Fiscal 2026 constant currency revenue outlook to high-single to low-double digit growth and expanded operating margin guidance.
  • For the fourth quarter, the company expects constant currency revenue to grow in the mid-single digits, though operating margins are projected to contract due to seasonal factors and tariffs.
  • Net income for the quarter was $362 million reported ($5.82 per share), compared to $297 million ($4.66 per share) in the same period last year.