For the three months ending September 27 (Q2), Ralph Lauren Corp recorded net revenues of $2bn.
Net income increased to $207.5m versus $147.9m a year earlier. Operating income was $245.7m compared with $178.9m.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The company attributed the increase to continued momentum in new customer acquisition and loyalty, with 1.5m new consumers in its direct-to-consumer businesses.
Ralph Lauren Corp saw increased sales in its core business, which were up mid-teens, and increased average unit retail in the direct-to-consumer network in Q2, above expectations, which it said reflected its “continued elevation, strong full-price selling trends and lower than planned promotions.”
By geography, revenues were driven by double-digit growth across every region, led by Asia and Europe, and accelerated 13% growth in North America. China’s revenue increased by more than 30% year over year, similar to Q1.
Patrice Louvet, president and CEO, said: “We are off to a strong start in the execution of our Next Great Chapter: Drive strategic plan introduced at our Investor Day in September, with second quarter performance outpacing our expectations across geographies, channels and consumer segments. Our iconic brand and timeless products continue to resonate with consumers around the world, across generations and cultures, and we are reinforcing our inclusive luxury lifestyle position with disciplined investments to drive sustainable long-term growth and value creation well beyond this fiscal year.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData“As we continue to navigate a highly dynamic global operating environment with agility, we are encouraged by our brand’s continued momentum through the start of the important Fall/Holiday season, enabling us to once again raise our Fiscal 2026 outlook.”
Outlook FY 2026
Revenues: Increase 5% to 7% on a constant currency basis. Based on current exchange rates, foreign currency is expected to benefit revenue growth by approximately 200 to 250 basis points in Fiscal 2026.
Operating margin: Expand approximately 60 to 80 basis points in constant currency, up from its prior outlook, driven primarily by operating expense leverage. Foreign currency is now expected to benefit gross and operating margins by approximately 30 to 50 basis points
Outlook Q3
Revenues: To grow approximately mid-single digits on a constant currency basis. Foreign currency is expected to benefit revenue growth by approximately 150 to 200 basis points.
Operating margin: To expand approximately 60 to 80 basis points in constant currency. Foreign currency is expected to benefit gross and operating margins by approximately 10 and 20 basis points, respectively.
