Earnings Overview
Ralph Lauren Corporation reported first‑quarter 2026 adjusted earnings per share of $4.59, topping the Wall Street consensus of $4.24. Revenue reached $1.96 billion, exceeding the $1.85 billion estimate, representing a 14% increase on a reported basis and 13% in constant currency year‑over‑year.
Geographic Performance
Asia revenue climbed 24% on a reported basis (25% in constant currency) to $589 million, with China posting more than 40% year‑over‑year growth. North America revenue rose 13% to $740 million, while Europe revenue grew 7% reported (5% constant currency) to $594 million.
Operating Metrics
Adjusted operating margin expanded 170 basis points to 18.7%, driven by strong full‑price demand and expense discipline. Average unit retail across the direct‑to‑consumer network increased 15%, and comparable store sales in the DTC channel rose in the low‑double‑digit range.
Balance Sheet and Shareholder Returns
The company maintained $1.9 billion in cash and short‑term investments and returned more than $300 million to shareholders through dividends and share repurchases during the quarter.
Outlook and Guidance
Ralph Lauren lifted its fiscal 2027 full‑year guidance, now forecasting constant‑currency revenue growth of approximately 5%‑6% and operating‑margin expansion of 60‑80 basis points, up from prior expectations. For the second quarter, the company projects revenue growth of about 5%‑6% on a constant‑currency basis and margin expansion of roughly 80‑100 basis points.
Market Reaction
Shares advanced roughly 4% in pre‑market trading following the release.
Management Commentary
Patrice Louvet, President and Chief Executive Officer, said the results represent a strong start to the second year of the “Next Great Chapter: Drive” plan, highlighting broad‑based performance across geographies, channels and consumer segments.