In the third quarter (Q3) ending 27 December 2025, the company reported a 12% increase year-over-year in net revenue to $2.4bn, with foreign currency movements contributing around 220 basis points to this growth.
Revenue rose by 10% on a constant currency basis, surpassing the company’s prior expectations of mid-single-digit growth.
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By segment, North America revenue rose 8% to $1.1bn, supported by a 7% increase in comparable store sales, and an 11% rise in wholesale revenues.
In Europe, revenue climbed 12% to $676m on a reported basis and 4% in constant currency, with digital commerce up 5% but physical store sales down 1%.
Asia recorded a 22% increase in revenue to $620m, with comparable store sales growing by 20%.
The company’s gross profit reached $1.7bn, representing a margin of 69.9%, up 150 basis points from the previous year.
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By GlobalDataThe company attributed gross margin expansion to higher average unit retail prices and lower cotton costs, which offset increased tariffs and other product expenses.
Operating income increased to $471.3m from $389.7m.
Net income for the third quarter was $362m, which translates to $5.82 per diluted share on a reported basis, compared to $297m or $4.66 per share last year.
“This holiday season, our teams delivered strong, high-quality growth across geographies and consumer segments, enabling accelerated investment in our long-term strategic priorities and brand elevation,” said Patrice Louvet, president and CEO. “In a dynamic operating environment, our Next Great Chapter: Drive strategy — supported by multiple growth drivers, the enduring and emotional power of our brand, and strong operational discipline — positions us well to continue to deliver sustainable growth and long-term value creation.”
Outlook for FY26 and Q4
Looking ahead, Ralph Lauren now expects full-year fiscal 2026 revenues to grow by high-single to low-double digits on a constant currency basis, compared to its earlier guidance of a 5–7% increase.
For the fourth quarter, the company forecasts revenue growth in the mid-single digits on a constant currency basis, with foreign exchange expected to add around 200–300 basis points.
