Ralph Lauren said Q4 net revenue increased 17% to $2.0bn on a reported basis and 12% in constant currency. Foreign currency benefited revenue growth by approximately 450 basis points in the fourth quarter.
Regional performance in the quarter was broad, with North America revenue increasing 8% to $763m and 16% in comparable store sales. Europe revenue increased 18% to $620m on a reported basis and 6% in constant currency. In retail, comparable store sales in Europe increased 5%.
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Asia remained the standout, rising 31% to $564m on a reported basis and 28% in constant currency. Comparable store sales in Asia increased 25%.
In wholesale revenue, North America was flat, whereas Europe increased 19% on a reported basis and 7% in constant currency.
Gross profit for the fourth quarter was $1.4bn and gross margin was 69.7%. Operating expenses were $1.2 bn and operating income was $189m.
Ralph Lauren FY26
Net revenue for Fiscal 2026 (FY26), saw an increase of 15% to $8.1bn on a reported basis and was up 12% in constant currency.
By region, North America revenue increased 9% to $3.3bn, Europe jumped 17% to $2.5bn, and Asia revenue rose 23% to $2.1bn.
Gross profit for the year was $5.7bn, and operating income was $1.2bn.
Patrice Louvet, president and chief executive officer said: “While navigating a highly dynamic global operating environment, we exceeded our financial commitments in Fiscal 2026 with revenues surpassing $8 billion for the first time on healthy quality of sales, with balanced contributions across our lifestyle categories, geographies, and channels — a testament to the power of our iconic brand and ability to connect authentically with consumers across generations and cultures.”
Looking ahead to FY27
For Fiscal 2027 (FY27), Ralph Lauren expects constant currency revenues to increase approximately mid-single digits to last year on a 52-week comparable basis, centred around 4% to 5%.
The Company expects the operating margin for FY27 to expand approximately 40 to 60 basis points in constant currency, driven by modest gross margin expansion and operating expense leverage.
Gross and operating margin expansion are expected to be stronger in the first half of the fiscal year, largely due to the timing of key marketing activations compared to the prior year period and a lower prevailing tariff rate of 10% during the period.
For the first quarter, the brand expects revenues to increase approximately mid- to high-single digits to last year on a constant currency basis and operating margin is expected to expand approximately 80 to 120 basis points in constant currency, led by gross margin expansion.
Louvet continued: “Looking ahead, we remain focused on driving our multiple engines of growth while continuing to lay the groundwork for sustainable growth and value creation into the future. This gives us confidence in introducing an initial Fiscal 2027 outlook consistent with our Next Great Chapter: Drive commitments, all supported by our highly engaged teams, embracing AI and new technologies, our culture of operating discipline, and a best-in-class balance sheet.”
