Anchored by a 30.7% profit surge and rising global revenues, the heritage brand remains confident—despite economic uncertainties ahead
Ralph Lauren Corporation opened its fiscal year with confident momentum, reporting a 30.7 percent increase in net income for the first quarter and subsequently raising its full-year outlook. The company posted net earnings of $220.4 million, up from $168.6 million in the prior year, while adjusted income climbed even higher—up 34.9 percent to $236 million, or $3.77 per diluted share. That figure surpassed analyst expectations by 22 cents, according to Yahoo Finance. Investors responded favorably, with shares rising 2.3 percent in premarket trading to $310, further extending a rally that has seen the stock climb 90 percent over the past 12 months.
Several forces are driving the brand’s stock performance—from a deliberate elevation of pricing strategies and renewed brand investment to the careful maneuvering of tariff pressures and global supply chain intricacies. This sustained growth is attributed not only to strategic price elevation and operational efficiency, but also to the enduring resonance of Ralph Lauren’s brand identity. “What we stand for—aspiration, optimism, individuality, and authenticity—inspires people in every corner of the world,” remarked Ralph Lauren, executive chairman and chief creative officer. Ralph Lauren strives to bring these values to life and invites people to step into their dreams, which is evident in recent activations, including the brand’s first fashion presentation in Shanghai, its MLB World Tour Tokyo Series experience, and a Women’s Polo showcase in Paris.
Revenues for the quarter ended June 28 rose 14 percent to $1.7 billion, reflecting an 11 percent increase in constant currency. North America posted an 8 percent gain to $656 million, with comparable sales up 12 percent. In Europe, revenues advanced 16 percent to $555 million, or 10 percent in constant currency, with comparable sales also rising 10 percent. Asia, a key growth market, saw revenues increase 21 percent to $474 million: a 19 percent constant currency gain with an 18 percent rise in comparable sales. The brand also saw its average unit retail prices rise 14 percent across its owned stores and digital channels.
Anchored by this performance, the company revised its fiscal 2026 guidance upward, now anticipating low- to mid-single-digit revenue growth in constant currency, compared to the previously forecast low-single-digit increase. Operating margin expansion is also expected to reach 40 to 60 basis points—a more assertive outlook than the modest growth projection made in May. Yet even amid this optimism, Ralph Lauren’s leadership remains attentive to broader market forces by remaining cautious in the back half, specifically disproportionately in North America, as there is remaining uncertainty with consumers amidst a more inflationary landscape. This tempered confidence underscores a seasoned awareness that in luxury, sustainable growth hinges not just on aspiration—but on agility in the face of economic uncertainty.