Ralph Lauren Beats Earnings Estimates, Raises Full-Year Outlook

Ralph Lauren Corp reported Q1 Fiscal 2026 earnings that exceeded expectations, with revenue of $1.7 billion, up 14% YoY, and EPS of $3.52. The company achieved a 13% growth in direct-to-consumer comparable store sales and a 72.3% gross margin, up 180 basis points from the previous year. Ralph Lauren has raised its full-year Fiscal 2026 outlook, expecting revenue to increase in the low double-digits.

Ralph Lauren Corp (RL) reported robust earnings for the first quarter of fiscal 2026, surpassing analysts' expectations. The company's revenue reached $1.7 billion, up 14% year-over-year (YoY), while earnings per share (EPS) stood at $3.52, beating the forecast of $3.45 [2]. The company also achieved a 13% growth in direct-to-consumer comparable store sales and a 72.3% gross margin, up 180 basis points from the previous year [2].

Ralph Lauren's strong performance was driven by double-digit top-line growth in Asia and Europe, as well as high single-digit growth in North America. The company's global comparable store sales increased by 13%, exceeding expectations [2]. This growth was fueled by a 13% rise in total retail comps and mid-teens growth in digital sales [2].

Despite the positive results, the company's stock fell by 3.52% in pre-market trading, reflecting investor concerns over potential future challenges such as tariffs and macroeconomic uncertainties [2]. The stock currently trades at a P/E ratio of 23.72x, indicating a premium valuation relative to near-term earnings growth [2].

Looking ahead, Ralph Lauren raised its full-year Fiscal 2026 outlook, expecting revenue to increase in the low double-digits. The company anticipates high single to low double-digit revenue growth in the first half of the year and expects operating margin expansion of 40-60 basis points [1].

Executives expressed optimism about the company's performance and strategic execution. CEO Patrice Louvet noted, "We are encouraged by our strong start to the fiscal year," while CFO Justin Bicicci highlighted the company's commitment to investing in its brands and market share gains [2].

However, potential tariff impacts, macroeconomic pressures, supply chain disruptions, market saturation in key regions, and currency fluctuations pose risks to the company's growth prospects [2].

References:
[1] https://www.marketscreener.com/news/ralph-lauren-corporation-provides-earnings-guidance-for-the-full-year-fiscal-2026-ce7c5edfdf8af522
[2] https://www.investing.com/news/transcripts/earnings-call-transcript-ralph-lauren-q1-2026-beats-forecasts-stock-dips-93CH-4177982