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Sep 27, 2025
Ralph Lauren Q2 2026 Earnings Report
Ralph Lauren posted strong Q2 FY2026 results with double-digit revenue growth across all regions and a notable increase in earnings.
Key Takeaways
Ralph Lauren exceeded expectations in Q2 FY2026 with $2.01B in revenue, boosted by strong direct-to-consumer performance, higher average unit retail, and margin expansion.
Revenue rose 17% YoY to $2.01 billion, driven by double-digit growth across North America, Europe, and Asia.
EPS increased to $3.32 (reported) and $3.79 (adjusted), reflecting improved margins and disciplined expense control.
Gross margin expanded to 68.0% supported by higher full-price selling and favorable product mix.
Cash and short-term investments totaled $1.6 billion, maintaining a strong balance sheet.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Ralph Lauren raised its full-year FY2026 guidance, now expecting 5% to 7% revenue growth and 60 to 80bps margin expansion in constant currency, despite maintaining a cautious view of macroeconomic risks.
Positive Outlook
- Raised full-year constant currency revenue growth outlook to 5–7%
- Full-year operating margin expected to expand 60–80 basis points
- Foreign currency to benefit margins by 30–50 basis points
- Continued strong momentum in Asia and Europe
- Ongoing investments in brand elevation and AI tools like 'Ask Ralph'
Challenges Ahead
- Global macroeconomic and geopolitical environment remains uncertain
- Continued inflationary pressures impacting operations
- Foreign currency volatility could affect reported results
- Tariffs and trade barriers remain a cost headwind
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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