Ralph Lauren Corp - Class A
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +4.12%.
Did RL Beat Earnings? Q4 2025 Results
Ralph Lauren closed out fiscal 2025 on a high note, delivering a quarter that exceeded Wall Street expectations on both the top and bottom lines and capping the final year of its three-year Accelerate strategic plan. Adjusted earnings per share of $2.27 beat the $2.04 consensus by 11.27%, while revenue of $1.70 billion topped estimates by 3.02% and rose 8.3% from a year earlier. The outperformance was driven in large part by exceptional direct-to-consumer momentum, with comparable store sales climbing 13% in the quarter and digital commerce surging 25% in Europe and 27% in Asia. Europe led all regions with 16% constant currency growth, while adjusted gross margin expanded 200 basis points to 68.6%, reflecting favorable channel and product mix alongside average unit retail gains. The company also announced a 10% dividend increase and a new $1.50 billion share repurchase program, signaling continued confidence in the brand's trajectory. Looking ahead, management guided for low-single-digit constant currency revenue growth in fiscal 2026, with first-quarter revenues expected to rise approximately high-single digits, though the outlook carries caveats around macroeconomic uncertainty and evolving trade conditions.
- Global DTC comparable store sales increased 13% in Q4 and 10% for the full year
- AUR increased high single-digits for both Q4 and full year, on top of double-digit increases last year
- High-potential categories (Women's, Outerwear, Handbags) grew high-teens in Q4 in constant currency
- 5.9 million new DTC customers recruited in fiscal year
- Core business revenue up low double-digits in constant currency for both quarter and full year
- Favorable geographic, channel, and product mix driving gross margin expansion
- Lower cotton costs partially offset by non-cotton product cost increases
- China revenue grew more than 20% in Q4
“Our strong performance in the third and final year of our Next Great Chapter: Accelerate plan underscores the growing desirability of our brand and our team's powerful execution as we navigated a dynamic global operating environment. We successfully delivered on our strategic and financial commitments this fiscal year and through our long-term strategic plan — across our multiple drivers of growth — and at the same time, we continued to lay the groundwork for sustainable growth and value creation into the future.”
Ralph Lauren CEO, on the earnings call
Forward Guidance & Outlook
For Fiscal 2026, Ralph Lauren expects revenues to increase approximately low-single digits on a constant currency basis, with growth weighted to the first half. Operating margin is expected to expand modestly in constant currency, driven by operating expense leverage. Gross margin is expected to be approximately flat in constant currency, with AUR growth and lower cotton costs offsetting increased tariffs and non-cotton material costs. Foreign currency expected to have relatively minimal impact. For Q1 FY2026, revenues expected to increase approximately high-single digits in constant currency with operating margin expansion of approximately 150-200 basis points. Full-year tax rate expected at 20%-22%. Capital expenditures planned at approximately 4%-5% of revenue. This outlook is considered preliminary given high volatility in the operating environment.
RL YoY Financials
RL Revenue by Segment
RL Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.