Aug 6, 2026, 8:07 AM ETConsumer Cyclical

Ralph Lauren — First Quarter Fiscal 2027 Earnings Summary

RLRALPH LAUREN CORP

Financial Performance

Net revenue increased 14% to $2.0 billion on a reported basis and 13% in constant currency compared to the prior year.
Earnings per diluted share were $4.28 on a reported basis and $4.59 on an adjusted basis, both up 22% year-over-year.
Net income was $262 million on a reported basis and $281 million on an adjusted basis, compared to $220 million and $236 million, respectively, in the prior year.
Gross margin was 73.7%, an expansion of 140 basis points year-over-year, driven by Average Unit Retail (AUR) growth and favorable channel/geographic mix.
Operating margin was 17.5% on a reported basis and 18.7% on an adjusted basis, an expansion of 170 basis points year-over-year.
Operating expenses were $1.1 billion, up 14% year-over-year, with an adjusted operating expense rate of 55.0% compared to 55.2% in the prior year.
The effective tax rate was approximately 23% on both a reported and adjusted basis.
Inventory ended the quarter at $1.2 billion, down 5% compared to the prior year period.
Cash and short-term investments totaled $1.9 billion, while total debt was $1.2 billion.

Full-year Fiscal 2027 constant currency revenue growth is now expected to be mid-single digits, centered around 5% to 6%, up from previous guidance.
Full-year Fiscal 2027 adjusted operating margin expansion is now expected to be 60 to 80 basis points in constant currency.
Second quarter Fiscal 2027 revenue is expected to grow approximately mid-single digits on a constant currency basis, centered around 5% to 6%.
Second quarter Fiscal 2027 operating margin is expected to expand approximately 80 to 100 basis points in constant currency.
Full-year Fiscal 2027 tax rate is expected to be in the range of 21% to 22%, with the second quarter tax rate expected to be 19% to 20%.
Capital expenditures for Fiscal 2027 are expected to be approximately 4% to 5% of revenue.
Foreign currency is expected to negatively impact full-year revenue growth by 50 to 100 basis points and second quarter revenue growth by 100 to 150 basis points.

Global Direct-to-Consumer comparable store sales increased low-double-digits, driven by both digital and brick-and-mortar channels.
Wholesale sales accelerated to mid-teens growth on healthy underlying demand.
Average Unit Retail (AUR) increased 15% across the direct-to-consumer network.
North America revenue increased 13% to $740 million; comparable store sales rose 9% (10% in brick-and-mortar, 8% in digital).
Europe revenue increased 7% to $594 million; comparable store sales rose 1% (6% in digital, flat in brick-and-mortar).
Asia revenue increased 24% to $589 million; comparable store sales rose 23% (32% in digital, 22% in brick-and-mortar).
Core business grew mid-teens; high-potential categories (Women's Apparel, Outerwear, Handbags) increased more than 20% in constant currency.
New store openings included 22 owned and partnered locations, including The Grove (Los Angeles), Stanford Shopping Center (Palo Alto), Istanbul, and Polo stores in Sydney and Perth.
Product highlights included Spring '26 collections, a Wimbledon capsule, and new Home collections (Sterling Square and Saddlebrook).

Asia delivered 24% reported growth, with China up more than 40% year-over-year.
North America wholesale revenue increased 22%, including approximately 15 points of benefit from resumed shipments to a luxury wholesale account and timing shifts from the prior year.
Europe wholesale revenue increased 11% on a reported basis, including approximately 5 points of benefit from earlier shipment timing.
The company acquired 1.5 million new consumers in its direct-to-consumer businesses.
Social media followers increased to over 70 million, a high-single digit increase year-over-year.

The outlook considers potential headwinds from tariffs, inflationary pressures, global supply chain disruptions, and foreign currency volatility.
Risks include the potential imposition of additional tariffs, changes to trade agreements, and retaliatory measures by impacted countries.
Business risks include economic slowdowns affecting consumer spending on discretionary items, supply chain disruptions, and labor shortages.
Operational risks include cybersecurity breaches, man-made or natural disasters, and the impact of geopolitical conflicts.
The company faces risks related to inventory management, promotional environments, and the ability to maintain brand image.

Patrice Louvet, President and CEO, stated the company is "off to a strong start" in the second year of the "Next Great Chapter: Drive" plan, exceeding expectations.
Management highlighted broad-based performance across geographies, channels, and consumer segments.
Strategic priorities include recruiting new and younger consumers, strengthening core and high-potential categories, and developing key city ecosystems.
Ralph Lauren, Executive Chairman and Chief Creative Officer, emphasized values of optimism, aspiration, authenticity, and the belief that everyone can step into their dreams.
Management noted that strong full-price demand and expense discipline more than offset increased marketing investments.

The company returned more than $300 million to shareholders through dividends and stock repurchases in the first quarter.
Approximately $250 million of Class A Common Stock was repurchased in the first quarter.
The company celebrated America's 250th anniversary with the "American Icons" commemorative postage stamp collection.
Strategic initiatives included the Spring '26 "A Sporting Life" global campaign, the Spring '27 Men's Fashion Show in Milan, and the first Ralph Lauren Polo Cup events in Beijing and Sydney.
The company released "Ralph Lauren Catwalk," a new book featuring over 50 years of women's Collection runway looks.
Fiscal 2027 is a 53-week year, with the 53rd week expected to contribute an additional 1 point to revenue growth.