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Dec 27, 2025
Ralph Lauren Q3 2026 Earnings Report
Ralph Lauren reported strong third quarter fiscal 2026 holiday results, exceeding expectations, and raised its full-year outlook.
Key Takeaways
Ralph Lauren Corporation delivered strong third quarter fiscal 2026 results, with revenue increasing 12% on a reported basis and 10% in constant currency, driven by healthy demand across all geographies. Adjusted diluted EPS rose 29% to $6.22, significantly ahead of prior year expectations.
Third Quarter Revenue Increased 12% on a Reported Basis and 10% in Constant Currency, exceeding expectations, reflecting healthy demand across geographies.
Global Direct-to-Consumer Comparable Store Sales Grew High-Single-Digits, driven by balanced growth across stores and digital; Global Wholesale Sales Increased Double-Digits.
Adjusted Gross and Operating Margin Expansion were ahead of outlook, with strong full-price sales and expense leverage more than offsetting increased tariffs, marketing and ecosystem investments.
Raised Full Year Fiscal 2026 Constant Currency Revenue and Operating Margin Expansion Outlook, reflecting stronger than anticipated performance year-to-date.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
For Fiscal 2026, Ralph Lauren now expects revenues to increase high-single to low-double digits on a constant currency basis, up from its prior outlook of a 5% to 7% increase. Operating margin is expected to expand approximately 100 to 140 basis points in constant currency. For the fourth quarter, revenues are expected to increase mid-single digits on a constant currency basis, but operating margin is expected to contract approximately 80 to 120 basis points in constant currency.
Positive Outlook
- Full year Fiscal 2026 revenue outlook raised to high-single to low-double digits constant currency growth (previously 5% to 7%).
- Full year Fiscal 2026 operating margin expected to expand approximately 100 to 140 basis points in constant currency (previously 60 to 80 basis points).
- Foreign currency expected to benefit full year Fiscal 2026 revenue growth by approximately 200 to 250 basis points.
- Foreign currency expected to benefit full year Fiscal 2026 gross and operating margins by approximately 20 and 50 basis points, respectively.
- Fourth quarter revenue expected to increase approximately mid-single digits on a constant currency basis.
Challenges Ahead
- Fourth quarter operating margin expected to contract approximately 80 to 120 basis points in constant currency.
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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