Fourth-quarter sales surged 17 percent as the company continued to raise prices, expand margins and outperform the broader luxury market
Ralph Lauren Corp. crossed the $8 billion revenue mark for the first time in its history, capping another year of growth fueled by full-price selling, rising average unit retail prices and continued momentum across regions and channels.
Fourth-quarter revenues rose 17 percent to $2 billion, or 12 percent in constant currency, ahead of expectations. Full-year revenues climbed 15 percent to $8.1 billion, or 12 percent in constant currency.
Net income for the quarter increased 17.5 percent to $151.6 million, while diluted earnings per share rose to $2.45 from $2.03 a year earlier.
“For nearly 60 years, our brand has stood for optimism, quality, authenticity, and a life well lived,” said Ralph Lauren, Executive Chairman and Chief Creative Officer. “From the passion and pursuit of greatness at the Olympics — the world’s biggest stage in sports — to joyful traditions like Lunar New Year, we are bringing people together through timeless style that celebrates life’s meaningful moments.”
Chief Executive Officer Patrice Louvet said the company exceeded its commitments under its “Next Great Chapter: Drive” strategic plan despite a volatile global environment.
“While navigating a highly dynamic global operating environment, we exceeded our financial commitments in Fiscal 2026 with revenues surpassing $8 billion for the first time on healthy quality of sales, with balanced contributions across our lifestyle categories, geographies, and channels,” Louvet said.
The company continued to push average unit retail prices higher, with AUR up in the mid-teens during both the quarter and full fiscal year, supported by reduced discounting and stronger full-price selling trends.
Direct-to-consumer comparable store sales increased 17 percent in the fourth quarter and 13 percent for the full year, with growth across both physical stores and digital commerce. Asia remained the standout region, with fourth-quarter sales rising 31 percent on a reported basis and 28 percent in constant currency, driven by strong Lunar New Year demand in China. Europe revenues rose 18 percent, while North America gained 8 percent.
The company also expanded margins during the period. Fourth-quarter gross margin rose 110 basis points to 69.7 percent, while adjusted operating margin increased 70 basis points to 11 percent.
For the full year, operating income climbed to $1.18 billion from $932 million a year earlier.
Ralph Lauren continued investing heavily in brand visibility and retail expansion throughout the year, including activations tied to the 2026 Milan Cortina Winter Olympics, fashion presentations in New York, Milan and Paris, and Lunar New Year campaigns. The company also opened stores in cities including Chengdu, Sydney, Bangkok, Newport Beach and London.
Looking ahead, Ralph Lauren expects fiscal 2027 revenues to rise in the mid-single digits, centered around 4 percent to 5 percent growth on a constant-currency basis.