The luxury house continues its global growth streak, powered by elevated pricing, sports activations, and brand heat across markets.
Key Takeaways:
- Q2 revenue: $2B, up 17% year-over-year.
- Net income: $207.5M, up 40%.
- Regional growth: North America +13%, Europe +22%, Asia +17%.
- EPS: $3.79 (vs. $3.45 expected).
- FY26 outlook: Revenue +5–7% in constant currency; margin expansion +60–80 bps.
- Strategic themes: Brand elevation, global expansion, disciplined pricing, and sports-led marketing.
Ralph Lauren Corp. extended its winning streak in the fiscal second quarter, reporting a 17 percent jump in revenue to $2 billion and lifting its full-year guidance on the strength of broad-based global gains.
Net income climbed nearly 40 percent to $207.5 million, with adjusted earnings per share reaching $3.79 — ahead of analyst expectations. Operating margins expanded 270 basis points to 14.1 percent, underscoring continued efficiency gains under the company’s multi-year brand elevation strategy.
The quarter marked growth across all major markets: North America rose 13 percent, Europe 22 percent, and Asia 17 percent. Average unit prices increased 12 percent in Ralph Lauren’s direct-to-consumer channels, reflecting a tighter, more premium assortment and disciplined distribution strategy.
Marketing also continued to amplify the brand’s cultural presence. Following two decades of partnership with Wimbledon and the U.S. Open, Ralph Lauren’s sports-driven storytelling delivered more than 67 billion global impressions and $350 million in media value. Additional visibility came organically when Taylor Swift appeared in Ralph Lauren during her engagement announcement, a viral moment the company deliberately chose not to commercialize — an indication of its measured, long-term approach to brand equity.
The company’s expansion strategy is unfolding across product and geography alike. Handbags, long identified as a growth opportunity, remain a focus, with Ralph Lauren positioning itself to compete directly with major leather goods players. The brand is also building out key global cities, adding two new stores in London and reentering San Francisco with four new direct-to-consumer locations.
Looking ahead, Ralph Lauren raised its fiscal 2026 outlook to project 5 to 7 percent revenue growth in constant currencies, with operating margins expected to expand by 60 to 80 basis points. Leadership noted a cautious tone regarding macroeconomic headwinds, including potential tariff impacts in the U.S., but emphasized the company’s strong operational momentum and diversified regional performance.
For founder and executive chairman Ralph Lauren, who was named American Womenswear Designer of the Year at the 2025 CFDA Awards this week, the results reaffirm the enduring power of the house’s creative vision. After nearly six decades, the brand continues to anchor its growth in a consistent idea of timeless style and aspirational living — now with renewed global reach.