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- **Revenue Surpass**: 14% YoY growth, exceeding expectations across all regions.
- **Brand Strength**: 1.5M new DTC customers, 67M social followers, and 67B global impressions from activations.
- **Profit Expansion**: Operating margin +210bps to 13.5%, AUR +12%, with Q4 facing tariff headwinds but long-term margin expansion plans.
- **China Dominance**: 30% sales growth driven by digital and selective expansion, with low double-digit long-term target.
- **Strategic Focus**: Core products +mid-teens, high-potential categories +double-digits, and cautious North America wholesale outlook.

**【CEO Summary Section】**
- **Revenue Growth**: Total revenue increased 14% year-over-year, driven by double-digit growth in all regions (Asia +16%, Europe +15%, North America +13%).
- **Brand Momentum**: 1.5 million new DTC customers added, 67 million social media followers, and 67 billion global impressions from sports and lifestyle activations.
- **Strategic Pillars**: Core products (cotton, sweaters, jackets) grew mid-teens, while high-potential categories (women's apparel, outerwear, handbags) expanded double-digits.
- **Key Cities**: Global retail comps +13%, with China sales up over 30% and digital ecosystem growth across regions.

**【CFO Financial Commentary】**
- **Top Line**: Adjusted revenue +14%, exceeding high single-digit guidance, with AUR growth 12% (Q2) and expected high single-digits for H2.
- **Profitability**: Adjusted operating margin expanded 210bps to 13.5%, driven by expense leverage (marketing as % of sales down 100bps) and gross margin +70bps to 67.7%.
- **Guidance Update**: Full-year revenue growth raised to 5-7% (vs. low/mid-single digits), with operating margin expansion 60-80bps and AUR growth 10-30bps.
- **Tariff Impact**: Q4 expected to face significant headwinds, but long-term mitigation strategies (sourcing shifts, pricing) support 50-100bps annual margin expansion over 3 years.

**【Q&A Highlights】**
- **Consumer Behavior**: Resilient core consumer with balanced growth across age cohorts; no meaningful changes in spending patterns despite macro caution.
- **North America Wholesale**: Q2 growth 13% (vs. 11pts from timing shifts), with planned Q4 off-price reductions and cautious outlook for U.S. consumer elasticity.
- **China Growth**: 30% Q2 sales driven by digital expansion (Douyin, LINE) and selective store openings; long-term low double-digit growth target maintained.
- **Supply Chain**: Diversified sourcing and innovation mitigate tariffs; outlet closures and full-price store expansion support brand elevation.


Ralph Lauren Corporation (RL) Q2 2026 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

RL

RL fundamentals

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