Ralph Lauren 2026 Q1 Earnings Strong Performance as Net Income Surges 30.7%

Ralph Lauren (RL) reported its fiscal 2026 Q1 earnings on August 7, 2025. The results exceeded expectations with robust revenue and earnings growth. The company raised its full-year revenue and margin outlook and showed improved profitability. Despite cautious guidance for the second half, the first quarter demonstrated strong global demand and strategic execution.

Ralph Lauren reported total revenue of $1.72 billion for Q1 2026, reflecting a 13.7% year-over-year increase. The company's Retail segment was a strong contributor, generating $1.20 billion in revenue. The Wholesale segment also performed well, adding $483.50 million to the top line. Additionally, the Licensing segment brought in $34.40 million, rounding out the revenue picture for the quarter.

Earnings per share (EPS) surged 35.6% to $3.62, driven by a 30.7% increase in net income to $220.40 million. This marked a new record for Q1 net income and the highest in over two decades. The company’s profitability continues to strengthen, indicating solid execution across its business segments.

The stock price of Ralph Lauren fell 3.86% during the latest trading day, with a 5.16% decline over the past week and a 0.55% dip month-to-date.

A historical strategy of buying RL shares after a quarterly revenue miss on the report date and holding for 30 days proved effective, delivering a 190.17% return over three years. This outperformed the benchmark by 138.48%. The strategy also showed a 43.38% compound annual growth rate with no maximum drawdown and a Sharpe ratio of 1.20, indicating strong risk-adjusted returns.

Ralph Lauren’s Executive Chairman and Chief Creative Officer highlighted the brand’s global appeal, noting events such as the first-ever fashion presentation in Shanghai and the MLB World Tour Tokyo Series. CEO Patrice Louvet expressed confidence in the company’s performance across regions and channels while emphasizing strategic priorities like customer growth and category expansion.

The company raised its full-year Fiscal 2026 revenue and adjusted operating margin expansion outlook. While cautious about the global operating environment in the second half, Ralph Lauren noted strong demand at full prices, disciplined expenses, and a healthy balance sheet with $2.3 billion in cash and short-term investments.

Ralph Lauren continued to execute its long-term strategy with confidence, as evidenced by the impressive earnings growth and improved guidance. The company’s strong financial position and brand strength position it well for the remainder of the fiscal year.

No non-earnings-related news was reported within the three-week period from August 7, 2025.