01—Abstract
Summary
Summary of the 8-K filed August 6, 2026. Cited figures are marked; the original filing is the authoritative source.
Ralph Lauren Corporation reported results for the fiscal first quarter ended June 27, 2026 (Fiscal 2027), exceeding its expectations and raising its full-year Fiscal 2027 outlook.
Net revenues rose 14% on a reported basis to $1.96 billiona (13% in constant currency), led by Asia (up 24% to $589.3 million) and North America (up 13% to $740.3 million), with Europe up 7% to $594.4 million. Gross margin reached 73.7%, up 140 basis points, and reported operating income was $342.4 million (17.5% margin). Adjusted operating income was $365.9 million, an 18.7% margin, 170 basis points above the prior year.
Reported diluted EPS was $4.28b (up 22%), and adjusted diluted EPS was $4.59 (up 22%). Adjusted figures exclude restructuring-related and other net charges, including Next Generation Transformation project charges. The company now expects Fiscal 2027 constant currency revenue growth centered around 5% to 6%, up from its prior mid-single-digit outlook, and operating margin expansion of approximately 60 to 80 basis points in constant currency.
Foreign currency is expected to reduce revenue growth by roughly 50 to 100 basis points. Fiscal 2027 is a 53-week year. For the second quarter, the company guided to constant currency revenue growth centered around 5%c to 6% and operating margin expansion of approximately 80 to 100 basis points.
Balance sheet and capital returns remained healthy. The company ended the quarter with $1.9 billiond in cash and short-term investments and $1.2 billion in total debt, compared with $2.3 billion and $1.6 billion a year earlier. Inventories were $1.2 billion, down 5% year over year per the release.
The company repurchased approximately $250 million of Class A common stock and returned more than $300 million to shareholders through dividends and repurchases in the quarter. The filing furnishes the results under Item 2.02 and is not deemed filed for Exchange Act Section 18 purposes.
02—Key points
Key Highlights
- Net revenues rose 14% to $1.96 billion on a reported basis (13% constant currency), ahead of company expectations.
- Asia revenue grew 24% to $589.3 million, with China up more than 40%; comparable store sales in Asia rose 23%.
- Global direct-to-consumer comparable store sales increased low-double-digits, with Average Unit Retail (AUR) up 15%.
- Reported gross margin was 73.7%, up 140 basis points; adjusted operating margin was 18.7%, up 170 basis points.
- Reported diluted EPS was $4.28 (up 22%); adjusted diluted EPS was $4.59 (up 22%).
- Full-year Fiscal 2027 constant currency revenue growth outlook raised to centered around 5% to 6%; operating margin expansion outlook raised to 60 to 80 basis points.
- Ended the quarter with $1.9 billion in cash and short-term investments and $1.2 billion in total debt; repurchased approximately $250 million of Class A common stock.
03—Questions
Frequently Asked Questions
How did Ralph Lauren perform in the first quarter of Fiscal 2027?
Net revenues increased 14% on a reported basis to $1.96 billion, and 13% in constant currency. Reported operating income was $342.4 million (17.5% margin), and adjusted operating income was $365.9 million (18.7% margin). Reported diluted EPS was $4.28 versus $3.52 a year earlier.
What changed in the company's Fiscal 2027 outlook?
The company raised its full-year constant currency revenue growth outlook to be centered around 5% to 6%, from mid-single digits, and its operating margin expansion outlook to approximately 60 to 80 basis points in constant currency, citing stronger-than-expected first quarter results. Foreign currency is expected to reduce revenue growth by about 50 to 100 basis points.
Which regions and channels drove growth?
Asia (up 24% reported) and North America (up 13% reported) led growth, followed by Europe (up 7% reported). North America wholesale rose 22%, including about 15 points of benefit from resumed shipments to a luxury wholesale account and a shift in timing of shipments from the fourth quarter of Fiscal 2026. Europe wholesale rose 11% on a reported basis.
What is the outlook for the second quarter of Fiscal 2027?
The company expects constant currency revenue to grow approximately mid-single digits, centered around 5% to 6%, with foreign currency negatively impacting revenue growth by about 100 to 150 basis points. Operating margin is expected to expand approximately 80 to 100 basis points in constant currency, led by gross margin expansion.
How strong is the balance sheet and how much was returned to shareholders?
Ralph Lauren ended the quarter with $1.9 billion in cash and short-term investments and $1.2 billion in total debt. It repurchased approximately $250 million of Class A common stock and returned more than $300 million to shareholders through dividends and repurchases in the quarter.
04—Continue