Ralph Lauren Stock Earnings Reports

Ralph Lauren reported a stronger-than-expected start to fiscal 2026. Q1 constant-currency revenue grew 11% with global comps up 13%; regionally Asia led (+19%, China +30%), Europe +10% and North America +8%. Digital and DTC were strong (digital ecosystem mid-teens growth; digital comps accelerated), and the company added 1.4 million new DTC customers. AUR rose 14% and adjusted gross margin expanded 160 bps to 72.1% (benefitting from higher full-price selling, mix and lower cotton costs); adjusted operating margin expanded 230 bps to 16.6%. Adjusted operating expenses increased (marketing at 7.5% of sales) but leverage drove higher operating profit. Inventory rose 18% (partly due to strategic receipt pull-forwards related to tariffs); management expects inventory to moderate and end fiscal '26 roughly in line with revenue. The company repurchased $250M of stock in Q1 and raised the annual dividend ~10% earlier in the year; cash was $2.3B with $1.6B debt. Management raised its full-year revenue outlook to low- to mid-single digits on a constant-currency basis and now expects operating margin expansion of ~40–60 bps, while cautioning the year will be heavily weighted to the first half and that tariffs and other cost inflation pose H2 risks. Key ongoing initiatives: brand elevation (major marketing activations globally), handbags and women's apparel expansion, continued rollout of AI-driven predictive buying and distribution automation, and focus on “key city” ecosystem expansion. Investor Day is scheduled for September for further strategic detail.