American luxurious life-style model Ralph Lauren Company has introduced stronger-than-expected outcomes for the second quarter (Q2) of fiscal 2026 (FY26) ended September 27, 2025, with income rising 17 per cent year-over-year (YoY) to $2 billion, or 14 per cent in fixed forex. The corporate attributed the robust efficiency to broad-based development throughout all areas, sustained demand in its direct-to-consumer (DTC) enterprise, and disciplined model elevation.
The gross revenue of the corporate reached $1.37 billion, with gross margin increasing 100 foundation factors (bps) to 68 per cent, pushed by increased common unit retail (AUR), beneficial product combine, and decrease cotton prices. These features offset inflationary and tariff-related pressures.
Ralph Lauren Company has reported better-than-expected Q2 FY26 outcomes, with income rising 17 per cent YoY to $2 billion, pushed by double-digit development throughout all areas and robust DTC demand.
Gross margin expanded 100 bps to 68 per cent, whereas adjusted working margin rose 270 bps to 14.1 per cent.
EPS elevated 49 per cent to $3.79.
The corporate raised its FY26 income and margin outlook.
The working earnings rose to $246 million, translating to a 12.2 per cent working margin on a reported foundation. Adjusted working earnings stood at $283 million, with a margin of 14.1 per cent, up 270 foundation factors from final 12 months. Europe led margin enchancment with a 360-basis-point improve, whereas North America and Asia improved by 290 and 230 foundation factors respectively, Ralph Lauren mentioned in a press launch.
The working bills totalled $1.1 billion, up 15 per cent YoY. The corporate maintained robust price self-discipline, with adjusted working bills rising 13 per cent and the expense ratio bettering to 53.9 per cent from 55.5 per cent.
The earnings per diluted share climbed 44 per cent to $3.32 on a reported foundation and 49 per cent to $3.79 on an adjusted foundation, excluding restructuring and different costs. This compares with $2.31 reported and $2.54 adjusted in Q2 FY25. Web earnings totalled $207 million, whereas adjusted web earnings reached $237 million.
The income in North America grew 13 per cent to $832 million. Comparable retailer gross sales rose 13 per cent, pushed by a 12 per cent improve in bodily retail and a 15 per cent surge in digital commerce. Wholesale income additionally improved by 13 per cent.
Income in Europe superior 22 per cent to $688 million on a reported foundation and 15 per cent in fixed forex. Comparable retailer gross sales elevated 10 per cent, together with 8 per cent development in bodily shops and 17 per cent in on-line gross sales. Wholesale gross sales jumped 26 per cent.
Income in Asia climbed 17 per cent to $446 million, or 16 per cent in fixed forex. Comparable retailer gross sales improved 16 per cent, with brick-and-mortar up 14 per cent and digital commerce hovering 36 per cent. China was a key development driver, posting over 30 per cent income development, sustaining the tempo seen within the first quarter.
The corporate continued to strengthen its model fairness, including 1.5 million new prospects via its DTC channels and reaching high-single-digit development in social media followers to 67 million globally.
The corporate’s ‘always-on’ advertising method drove sturdy shopper engagement, with activations round key world occasions reminiscent of Wimbledon, the US Open, and the Ryder Cup. The model additionally drew consideration via the Spring 2026 Ladies’s Assortment present in New York, an immersive Goodwood Revival expertise in England, and outstanding superstar moments that includes Taylor Swift, Travis Kelce, and Selena Gomez, the discharge mentioned.
Core classes reminiscent of Ladies’s Attire, Outerwear, and Purses grew at robust double-digit charges, outpacing complete firm development. The corporate launched a number of high-impact initiatives, together with the Polo Ralph Lauren for Oak Bluffs assortment in partnership with Morehouse and Spelman Schools, the Ralph’s Membership New York perfume marketing campaign that includes Usher, and an AI-powered styling instrument ‘Ask Ralph’, showcasing its mix of heritage and innovation.
The model furthered its ‘Win in Key Cities’ technique by opening 38 new owned and partner-operated shops in the course of the quarter, together with new places in Munich (Germany), Plano (Texas, US), Hangzhou (China), and Nagoya (Japan). It additionally accomplished the acquisition of its Newbury Avenue retailer in Boston, reinforcing its long-term retail footprint.
Ralph Lauren ended the quarter with $1.6 billion in money and short-term investments and $1.2 billion in complete debt. Stock stood at $1.3 billion, up 12 per cent YoY and aligned with demand developments. The corporate additionally retired $400 million in senior notes due in 2025 and repurchased $63 million of Class A typical inventory in Q2, totalling $313 million year-to-date (YTD).
Up to now in FY26, Ralph Lauren has returned roughly $420 million to shareholders via dividends and share buybacks.
“We are off to a strong start in the execution of our Next Great Chapter: Drive strategic plan introduced at our Investor Day in September, with second quarter performance outpacing our expectations across geographies, channels and consumer segments,” mentioned Patrice Louvet, president and chief government officer (CEO) at Ralph Lauren. “Our iconic brand and timeless products continue to resonate with consumers around the world, across generations and cultures, and we are reinforcing our inclusive luxury lifestyle position with disciplined investments to drive sustainable long-term growth and value creation well beyond this fiscal year.”
Ralph Lauren has raised its FY26 steering, as the corporate now expects income development of 5–7 per cent on a relentless forex foundation. The working margin growth of 60–80 foundation factors (bps), pushed by price effectivity and margin leverage. Overseas forex to offer a 30–50 bps tailwind to gross and working margins.
For the third quarter, the corporate initiatives mid-single-digit income development in fixed forex, with working margin anticipated to increase 60–80 foundation factors (bps).
“As we continue to navigate a highly dynamic global operating environment with agility, we are encouraged by our brand’s continued momentum through the start of the important Fall/Holiday season, enabling us to once again raise our fiscal 2026 outlook,” added Louvet.
