What drove the revenue growth in the quarter?

Revenue grew 14% on a reported basis and 11% in constant currency, with foreign currency adding about 230 basis points. Asia rose 21% reported (19% constant currency), led by China, which was up more than 30%. Europe rose 16% reported (10% constant currency), and North America rose 8%. Comparable store sales increased 13% globally, with digital commerce strong in Asia (up 35%) and North America (up 19%).

How did profitability change compared with the prior year?

Gross margin was 72.3%, up 180 basis points, driven by average unit retail growth, favorable channel and geographic mix, and lower cotton costs, partly offset by tariffs and other product costs. Adjusted operating expenses rose 12% to $949 million, with the adjusted operating expense rate falling to 55.2% from 56.2%. Reported operating income was $274 million, with a 15.9% operating margin, and adjusted operating margin was 17.0%.

What changed in the company's outlook?

For Fiscal 2026, the company now expects constant-currency revenue to increase low- to mid-single digits, with foreign currency benefiting revenue growth by approximately 150 to 200 basis points. Constant-currency operating margin is expected to expand approximately 40 to 60 basis points, up from its prior outlook. For the second quarter, it expects high-single-digit constant-currency revenue growth and 120 to 160 basis points of operating margin expansion. Management said it maintains caution about the global operating environment in the second half.

How is the company's balance sheet and capital return position?

The company ended the quarter with $2.3 billion in cash and short-term investments and $1.6 billion in total debt, compared with $1.8 billion and $1.1 billion a year earlier. During the quarter it repurchased approximately $250 million of Class A common stock and returned $300 million to shareholders through dividends and repurchases. It also completed the purchase of its Prince Street store location in New York City.

RL 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed August 7, 2025. Cited figures are marked; the original filing is the authoritative source.

Ralph Lauren Corporation reported results for the fiscal first quarter ended June 28, 2025 (Fiscal 2026), furnished under Item 2.02 via a press release (Exhibit 99.1).

Revenue rose 14% on a reported basis to $1.72 billion^a and 11% in constant currency, with growth led by Asia (up 21% reported) and Europe (up 16% reported), and North America up 8%. Global direct-to-consumer comparable store sales grew 13%. Gross margin reached 72.3%, up 180 basis points, and adjusted operating margin was 17.0%, up 270 basis points.

Reported diluted EPS was $3.52^b, up 35%, and adjusted diluted EPS was $3.77, up 40%. The company ended the quarter with $2.3 billion in cash and short-term investments and $1.6 billion in total debt, compared with $1.8 billion and $1.1 billion a year earlier. Inventory was $1.2 billion, up 18%.

The company repurchased approximately $250 million^c of Class A common stock and returned $300 million to shareholders through dividends and buybacks during the quarter. Management raised its full-year Fiscal 2026 outlook. It now expects constant-currency revenue to increase low- to mid-single digits and constant-currency operating margin to expand approximately 40 to 60 basis points, driven mainly by operating expense leverage.

For the second quarter, it expects high-single-digit constant-currency revenue growth and 120 to 160 basis points of operating margin expansion. Management stated it remains cautious about the global operating environment in the second half of the fiscal year.

02—Key points

Key Highlights

Revenue increased 14% to $1.72 billion on a reported basis and 11% in constant currency, with double-digit growth in Asia and Europe and 8% growth in North America.
Reported diluted EPS was $3.52, up 35%; adjusted diluted EPS, excluding restructuring-related and other net charges, was $3.77, up 40%.
Global direct-to-consumer comparable store sales grew 13%, with Asia comparable store sales up 18%, North America up 12%, and Europe up 10%.
Gross margin was 72.3%, 180 basis points above the prior year, and adjusted operating margin was 17.0%, 270 basis points above the prior year.
Cash and short-term investments were $2.3 billion against $1.6 billion of total debt; inventory was $1.2 billion, up 18%.
The company repurchased approximately $250 million of Class A common stock and returned $300 million to shareholders in the quarter through dividends and repurchases.
Full-year Fiscal 2026 guidance was raised for constant-currency revenue (low- to mid-single digits) and adjusted operating margin expansion (approximately 40 to 60 basis points), while management remains cautious on the second half.

03—Questions

Frequently Asked Questions

What drove the revenue growth in the quarter?
Revenue grew 14% on a reported basis and 11% in constant currency, with foreign currency adding about 230 basis points. Asia rose 21% reported (19% constant currency), led by China, which was up more than 30%. Europe rose 16% reported (10% constant currency), and North America rose 8%. Comparable store sales increased 13% globally, with digital commerce strong in Asia (up 35%) and North America (up 19%).
How did profitability change compared with the prior year?
Gross margin was 72.3%, up 180 basis points, driven by average unit retail growth, favorable channel and geographic mix, and lower cotton costs, partly offset by tariffs and other product costs. Adjusted operating expenses rose 12% to $949 million, with the adjusted operating expense rate falling to 55.2% from 56.2%. Reported operating income was $274 million, with a 15.9% operating margin, and adjusted operating margin was 17.0%.
What changed in the company's outlook?
For Fiscal 2026, the company now expects constant-currency revenue to increase low- to mid-single digits, with foreign currency benefiting revenue growth by approximately 150 to 200 basis points. Constant-currency operating margin is expected to expand approximately 40 to 60 basis points, up from its prior outlook. For the second quarter, it expects high-single-digit constant-currency revenue growth and 120 to 160 basis points of operating margin expansion. Management said it maintains caution about the global operating environment in the second half.
How is the company's balance sheet and capital return position?
The company ended the quarter with $2.3 billion in cash and short-term investments and $1.6 billion in total debt, compared with $1.8 billion and $1.1 billion a year earlier. During the quarter it repurchased approximately $250 million of Class A common stock and returned $300 million to shareholders through dividends and repurchases. It also completed the purchase of its Prince Street store location in New York City.

04—Continue

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