Ralph Lauren Corp - Class A
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.86%.
Did RL Beat Earnings? Q1 2026 Results
Ralph Lauren opened Fiscal 2026 with one of its strongest quarters in recent memory, posting adjusted diluted EPS of $3.77 against a consensus estimate of $3.50, a beat of 7.79%, while revenue of $1.72 billion topped expectations by 3.78% and grew 13.7% year-over-year. The standout driver was the company's brand elevation strategy, which pushed global direct-to-consumer comparable store sales up 13% and lifted average unit retail 14% across the DTC network, reflecting stronger full-price selling and leaner promotional activity. Gross margin expanded 180 basis points to 72.3%, and adjusted operating margin reached 17.0%, up 270 basis points year-over-year, demonstrating that premiumization is flowing through to the bottom line. Asia was the quarter's geographic highlight, accelerating to 21% reported revenue growth with China up more than 30%. Encouraged by the broad-based momentum, management raised its full-year constant currency revenue outlook to low- to mid-single digit growth and lifted its adjusted operating margin expansion guidance to approximately 40 to 60 basis points, though executives maintained a cautious tone on the second-half macro environment.
- Average unit retail (AUR) increased 14% across DTC network, above expectations
- Global DTC comparable store sales grew 13%
- Strong full-price selling trends with lower than planned promotions
- 1.4 million new consumers acquired in DTC businesses
- Core business up mid-teens; high-potential categories (Women's Apparel, Outerwear, Handbags) increased more than 20% in constant currency
- China revenue up more than 30% year-over-year
- Asia digital commerce comparable store sales grew 35%
- Gross margin expansion of 180 basis points driven by AUR growth, favorable channel/geographic mix, and lower cotton costs
“We delivered strong first quarter results across geographies, channels and consumer segments. While we continue to approach the current global operating environment with prudence, we are encouraged by the broad-based strength in our brand and our businesses as we execute on our long-term strategic priorities — including recruiting new and younger consumers, strengthening our core and high-potential categories, and developing our key city ecosystems in each region.”
Ralph Lauren CEO, on the earnings call
Forward Guidance & Outlook
For full year Fiscal 2026, the company now expects revenues to increase low- to mid-single digits on a constant currency basis, with foreign currency benefiting revenue growth by approximately 150 to 200 basis points. Operating margin is now expected to expand approximately 40 to 60 basis points in constant currency (raised from prior outlook), driven primarily by operating expense leverage. Foreign currency is expected to benefit gross and operating margins by approximately 10 and 40 basis points, respectively. For Q2, revenues are expected to grow approximately high-single digits in constant currency, with FX benefiting growth by approximately 100 to 150 basis points. Q2 operating margin is expected to expand approximately 120 to 160 basis points in constant currency. Full year tax rate is expected at approximately 19% to 20%, and Q2 tax rate at approximately 15% to 17%. Capital expenditures are expected at approximately 4% to 5% of revenue for the full year. The company maintains continued caution on the global operating environment in the second half of the fiscal year.
RL YoY Financials
RL Revenue by Segment
RL Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.