Ralph Lauren Q2 2027: Asia Surge Drives Guidance Raise
As seen on the 24/7 Wall St. homepage on November 5, 2026.
Management raised its fiscal 2027 constant-currency growth target to 6% to 7% from 5% to 6% on the back of 28% Asia revenue growth. Full-price selling is doing the heavy lifting behind that call.
Continue ReadingShow less
Ralph Lauren reported adjusted earnings per share of $4.64 for its second quarter of fiscal 2027, beating expectations. That extended the company's streak of topping analyst EPS expectations to six consecutive quarters.
Revenue reached $2.19 billion, ahead of expectations, with Asia the clearest engine behind the growth as revenue there rose 28%. Global direct-to-consumer comparable store sales rose, supported by a gain in average unit retail that reflects the brand's ongoing push toward full-price selling.
Adjusted gross margin expanded to 70.5%, and adjusted operating margin widened as well. Management attributed the gross margin improvement to the higher average unit retail, a favorable geographic mix shift, and lower product costs.
Sponsored
On the back of the quarter's results, management raised its fiscal 2027 constant-currency revenue growth target to a range centered around 6% to 7%, up from the prior 5% to 6%. CEO Patrice Louvet noted the company delivered strong second quarter performance, enabling it to raise its fiscal 2027 outlook once again.
Third-quarter constant-currency revenue growth is guided to a range centered around 3% to 4%, with management flagging drag from wholesale timing shifts and strategic reductions in off-price volume. Tariff uncertainty and currency volatility remain named near-term risks in the company's forward commentary.
Mentioned: RL