01—Abstract
Summary
Summary of the 10-Q filed August 6, 2026. Cited figures are marked; the original filing is the authoritative source.
Ralph Lauren Corporation's Form 10-Q for the first quarter of Fiscal 2027, ended June 27, 2026, reports net revenues of $1.960 billiona, up from $1.719 billion in the prior-year quarter, with net income of $262.2 million ($4.28 per diluted share) versus $220.4 million ($3.52 per diluted share).
Operating income rose to $342.4 millionb from $273.6 million, and gross profit as a percentage of net revenues increased to 73.7% from 72.3%. The filing attributes growth across all reportable segments, with Asia net revenues up $115.3 million (24.3%), North America up $84.1 million (12.8%) and Europe up $39.9 million (7.2%). Restructuring and other charges, net totaled $24.8 million, including $20.8 million of Next Generation Transformation project charges, and reduced net income by $18.8 million, or $0.31 per diluted share.
Cash flow from operations was $339.3 millionc, compared with $176.1 million a year earlier, driven mainly by a favorable change in operating assets and liabilities, including lower inventory levels. Cash and cash equivalents fell to $1.719 billion from $1.988 billion at fiscal year-end, and the net cash and short-term investments position declined to $702.2 million from $826.1 million. The company repurchased $325.1 million of Class A common stock, including $75.1 million of share withholdings, and paid $54.8 million in dividends.
The Board raised the quarterly dividend to $1.00d per share from $0.9125. Remaining repurchase authorization was approximately $1.102 billion as of June 27, 2026. The balance sheet shows total assets of $7.659 billion, total liabilities of $4.937 billion and equity of $2.722 billion.
Inventories rose to $1.164 billion from $1.014 billion, and supplier finance program obligations increased to $268.4 million from $172.1 million. The company had no borrowings under its $750 million Global Credit Facility or its commercial paper program, and reported that no Event of Default had occurred under the facility. The filing also notes ongoing uncertainty regarding IEEPA tariff refunds, tariff pressures, and shipping delays related to Middle East conflicts.
02—Key points
Key Highlights
- Net revenues rose 14.0% to $1.960 billion, with 13.4% growth on a constant currency basis; growth was reported across all three reportable segments.
- Operating income increased 25.2% to $342.4 million, and operating margin rose to 17.5% from 15.9%.
- Diluted EPS was $4.28 versus $3.52 a year earlier, aided by lower weighted-average diluted shares of 61.3 million versus 62.5 million.
- Asia net revenues grew 24.3% to $589.3 million, with comparable store sales up 23%.
- Operating cash flow was $339.3 million versus $176.1 million, while cash and short-term investments declined and net cash fell to $702.2 million from $826.1 million.
- The company repurchased $325.1 million of Class A stock and paid $54.8 million in dividends; the quarterly dividend was raised to $1.00 per share from $0.9125.
- Restructuring and other charges of $24.8 million reduced net income by $18.8 million, or $0.31 per diluted share, and no borrowings were outstanding under the $750 million Global Credit Facility.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2027, Ralph Lauren kept $0.13.
- Revenue$1.96B100.0%
- Cost of revenue−$515.6M26.3%
- Gross profit$1.44B73.7%
- Operating costs−$1.10B56.2%
- Operating income$342.4M17.5%
- Interest, other & tax−$80.2M4.1%
- Net income$262.2M13.4%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2027filed August 6, 2026Financial Statements
Q1 FY2027 against Q1 FY2026
| Line item | Q1 FY2027Q1 FY2026 | Change |
|---|---|---|
| Revenue | $1.96B$1.72B | +14.0% |
| Cost of Revenue | $515.60M$476.80M | +8.1% |
| Gross Profit | $1.44B$1.24B | +16.3% |
| SG&A Expenses | $1.08B$949.40M | +13.4% |
| Operating Expenses | $1.10B$968.70M | +13.7% |
| Operating Income | $342.40M$273.60M | +25.1% |
| Interest Expense | $13.00M$11.50M | +13.0% |
| Net Income | $262.20M$220.40M | +19.0% |
| EPS (Basic) | $4.36$3.62 | +20.4% |
| EPS (Diluted) | $4.28$3.52 | +21.6% |
| Shares Outstanding (Basic) | 60.10M61.00M | −1.5% |
| Shares Outstanding (Diluted) | 61.30M62.50M | −1.9% |
05—Questions
Frequently Asked Questions
How did Ralph Lauren perform in the first quarter of Fiscal 2027?
Net revenues were $1.960 billion, up 14.0% from $1.719 billion, and net income was $262.2 million, or $4.28 per diluted share, versus $220.4 million, or $3.52 per diluted share, a year earlier. Operating income rose to $342.4 million from $273.6 million, and gross margin improved to 73.7% from 72.3%.
What drove the revenue growth by segment?
North America net revenues increased $84.1 million (12.8%), driven by retail comparable store sales growth and a $41.9 million increase in wholesale. Europe increased $39.9 million (7.2%), led by wholesale growth of $30.8 million. Asia increased $115.3 million (24.3%), primarily from retail, with comparable store sales up 23%.
How much cash did the company return to shareholders and what does its liquidity look like?
The company repurchased $325.1 million of Class A common stock, including $75.1 million of share withholdings for taxes, and paid $54.8 million in dividends. Cash and cash equivalents were $1.719 billion and short-term investments were $222.6 million, against long-term debt of $1.239 billion. The $750 million Global Credit Facility had no borrowings outstanding, and approximately $1.102 billion remained under the repurchase program.
What restructuring and other charges affected the quarter?
Restructuring and other charges, net totaled $24.8 million, including $3.0 million of severance and benefit costs and $20.8 million of charges related to the Next Generation Transformation project. After tax, these charges reduced net income by $18.8 million, or $0.31 per diluted share.
What risks and developments does the filing highlight for the outlook?
The filing cites uncertainty over the amount and timing of IEEPA tariff refunds following a U.S. Supreme Court ruling, the potential for further tariff increases, and inflationary pressures. It also notes shipping delays and higher freight costs linked to Middle East military conflicts, as well as promotional activity across the retail sector. The company states that there are no material changes to the risk factors in its Fiscal 2026 10-K.
06—Continue