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.
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.
The 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.
