Luxury lifestyle powerhouse Ralph Lauren has delivered an impressive start to Fiscal 2026. In its Q1 results, the company posted a 14% year-on-year revenue increase, reaching $1.7 billion on a reported basis (11% growth in constant currency), outperforming analysts’ expectations.
Net income came in strong at $220 million, while adjusted earnings per share (EPS) surged 40% to $3.77, markedly exceeding forecasts. The company cites robust demand across Asia (up 21%), Europe (16%), and North America (8%), driven by full-price demand, margin expansion, and successful direct-to-consumer strategies.
Margins are improving—gross profit hit approximately $1.2 billion with a 72.3% gross margin, up 180 basis points from last year, aided by favorable product mix, average unit retail gains, and lower cotton costs. Operating income reached $274 million, translating to a 15.9% operating margin.
Ralph Lauren also bolstered its balance sheet, ending the quarter with $2.3 billion in cash and short-term investments, while returning value to shareholders via $300 million in dividends and stock repurchases.
Looking ahead, the company raised its full-year fiscal 2026 outlook. It now expects low-to-mid single-digit revenue growth and a 40–60 bps expansion in adjusted operating margin in constant currency. Q2 is projected to deliver high single-digit revenue growth and 120–160 bps margin improvement, though leadership remains cautiously optimistic about global macro challenges.
