American luxury lifestyle company Ralph Lauren Corporation has reported stronger-than-expected fiscal 2026 (FY26) results. The company also forecast mid-single-digit net revenue growth and continued operating margin expansion for fiscal 2027 (FY27).
For FY26 ended March 28, the company’s revenue increased 15 per cent year-over-year (YoY) to $8.1 billion on a reported basis. The gross profit stood at $5.7 billion, with gross margin of 69.9 per cent. Adjusted operating income rose to $1.3 billion, while adjusted operating margin expanded 200 basis points (bps) to 16 per cent YoY.
“Our teams around the world executed with excellence and agility to deliver a strong first year of our Next Great Chapter: Drive strategic plan,” said Patrice Louvet, president and CEO at Ralph Lauren.
He further said that while navigating a highly dynamic global operating environment, the company exceeded its financial commitments in fiscal 2026, with revenues surpassing $8 billion for the first time. The growth was supported by healthy quality of sales and balanced contributions across lifestyle categories, geographies and channels, reflecting the strength of its iconic brand and its ability to connect authentically with consumers across generations and cultures.
The net income in FY26 stood at $941 million, or $15.11 per diluted share, compared with $743 million, or $11.61 per diluted share, in FY25.
By region, FY26 revenue in North America increased 9 per cent to $3.3 billion. Europe revenue rose 17 per cent to $2.5 billion on a reported basis and 9 per cent in constant currency. Asia revenue increased 23 per cent to $2.1 billion on a reported basis and 22 per cent in constant currency.
Segment-wise, global direct-to-consumer (DTC) comparable store sales increased 17 per cent in Q4 and 13 per cent for the full year, supported by positive retail comparable sales (comps) across regions and channels. Average unit retail (AUR) rose in the mid-teens for both the fourth quarter (Q4) and the FY26, driven by product elevation, favourable geographic and channel mix, full-price selling and lower discounting.
Ralph Lauren ended FY26 with more than $2 billion in cash and short-term investments and well-positioned inventories.
Q4 revenue tops $2 billion
In Q4 FY26, Ralph Lauren’s revenue increased 17 per cent YoY to $2 billion on a reported basis. Net income rose to $152 million, or $2.45 per diluted share, compared with $129 million, or $2.03 per diluted share, in Q4 FY25.
The gross profit for the quarter was $1.4 billion, while gross margin expanded to 69.7 per cent, up 110 basis points (bps) from the previous year.
North America revenue increased 8 per cent to $763 million in Q4 FY26. Comparable store sales in the region rose 16 per cent, supported by a 14 per cent rise in brick-and-mortar sales and a 21 per cent increase in digital commerce. Wholesale revenue in North America was approximately flat.
Europe revenue grew 18 per cent to $620 million on a reported basis and 6 per cent in constant currency. Comparable store sales in Europe increased 5 per cent, while wholesale revenue rose 19 per cent on a reported basis and 7 per cent in constant currency.
Asia remained the strongest growth region, with revenue up 31 per cent to $564 million on a reported basis and 28 per cent in constant currency. Comparable store sales in Asia increased 25 per cent, including 31 per cent growth in digital commerce.
Operating margin to expand 40-60 bps
For FY27, Ralph Lauren expects constant currency revenue to increase in the mid-single digits on a 52-week comparable basis, centred around 4-5 per cent. Operating margin is expected to expand by 40-60 basis points, driven by modest gross margin expansion and operating expense leverage. The company said FY27 is a 53-week year, with the extra week expected to add about 1 point to revenue growth.
“Looking ahead, we remain focused on driving our multiple engines of growth while continuing to lay the groundwork for sustainable growth and value creation into the future,” Louvet added.
Fibre2Fashion News Desk (DS)
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