First-quarter revenue rose 14% as full-price demand and a 15% increase in average unit retail supported stronger margins.
Key Takeaways
- Revenue increased 14% to $1.96 billion, or 13% at constant currency.
- Asia revenue rose 24%, with China growing more than 40%.
- Global comparable sales advanced 12% as average unit retail increased 15%.
- Adjusted operating margin expanded 170 basis points to 18.7%.
- Ralph Lauren raised its full-year revenue and operating-margin outlook.
Ralph Lauren opened fiscal 2027 ahead of expectations, with growth across every major region and stronger profitability despite higher tariffs, marketing investment and other product costs.
Revenue for the quarter ended June 27 reached $1.96 billion, rising 14% as reported and 13% at constant currency. Adjusted net income increased 19% to $281 million, while adjusted diluted earnings rose 22% to $4.59.
The quarter strengthens the case for Ralph Lauren’s elevation strategy. Global direct-to-consumer comparable sales increased 12%, supported by gains across stores and digital commerce. Average unit retail rose 15%, reflecting higher pricing, favorable product mix and reduced promotional activity.
Gross margin expanded 140 basis points to 73.7%. Adjusted operating margin reached 18.7%, an improvement of 170 basis points, as full-price demand and expense discipline absorbed increased marketing investment and tariff pressure.
Asia Sets the Pace
Asia delivered the strongest regional performance, with revenue increasing 24% to $589 million and 25% at constant currency. Comparable sales rose 23%, including 32% digital growth and 22% growth across physical stores. China advanced more than 40%.
Asia’s operating margin expanded 280 basis points to 33.5%, making the region Ralph Lauren’s fastest-growing and most profitable reported segment during the quarter.
North America revenue increased 13% to $740 million. Comparable sales rose 9%, while wholesale revenue advanced 22%. Approximately 15 percentage points of that wholesale growth came from resumed shipments to a luxury account and previously shifted deliveries.
Europe revenue rose 7% to $594 million, or 5% at constant currency. Comparable sales increased 1%, with digital growth offsetting a broadly flat store performance. European wholesale growth also benefited from earlier shipment timing.
The geographic picture remains favorable, with Asia and North America driving momentum. Europe continues to grow at a measured pace, and portions of the wholesale acceleration reflect timing effects that will influence comparisons later in the year.
Elevation Extends Across Categories
Ralph Lauren’s core business grew at a mid-teens rate. Women’s apparel, outerwear and handbags each contributed to more than 20% constant-currency growth across the company’s high-potential categories.
The company recruited 1.5 million new direct-to-consumer customers and opened 22 owned and partner stores. New locations included Los Angeles, Palo Alto, Istanbul, Sydney and Perth.
Brand activity extended across fashion, sport and American culture through the Spring 2027 men’s show in Milan, Polo Cup events in Beijing and Sydney, and a collection of commemorative U.S. postage stamps marking America’s 250th anniversary.
These initiatives reinforce a broader lifestyle ecosystem around the brand. The financial impact is increasingly visible through higher average selling values, full-price demand and growth beyond the traditional menswear business.
Outlook Moves Higher
Ralph Lauren now expects fiscal 2027 constant-currency revenue growth of 5% to 6% on a comparable 52-week basis, up from its previous 4% to 5% projection. A 53rd week is expected to add approximately one percentage point.
The company also raised its expected constant-currency operating-margin expansion to between 60 and 80 basis points, compared with its previous range of 40 to 60 basis points. Second-quarter revenue is projected to grow 5% to 6% at constant currency.
Inventory ended the quarter 5% below the prior year, and operating cash flow nearly doubled to $339 million. Ralph Lauren returned more than $300 million to shareholders through dividends and share repurchases.
The quarter shows a brand converting elevation into financial leverage. Asia is supplying the fastest growth, expanded categories are broadening demand, and disciplined full-price selling is protecting profitability as external costs rise.