American luxury lifestyle brand Ralph Lauren Corporation has announced stronger-than-expected results for the second quarter (Q2) of fiscal 2026 (FY26) ended September 27, 2025, with revenue rising 17 per cent year-over-year (YoY) to $2 billion, or 14 per cent in constant currency. The company attributed the strong performance to broad-based growth across all regions, sustained demand in its direct-to-consumer (DTC) business, and disciplined brand elevation.
The gross profit of the company reached $1.37 billion, with gross margin expanding 100 basis points (bps) to 68 per cent, driven by higher average unit retail (AUR), favourable product mix, and lower cotton costs. These gains offset inflationary and tariff-related pressures.
The operating income rose to $246 million, translating to a 12.2 per cent operating margin on a reported basis. Adjusted operating income stood at $283 million, with a margin of 14.1 per cent, up 270 basis points from last year. Europe led margin improvement with a 360-basis-point increase, while North America and Asia improved by 290 and 230 basis points respectively, Ralph Lauren said in a press release.
The operating expenses totalled $1.1 billion, up 15 per cent YoY. The company maintained strong cost discipline, with adjusted operating expenses rising 13 per cent and the expense ratio improving 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 basis and 49 per cent to $3.79 on an adjusted basis, excluding restructuring and other charges. This compares with $2.31 reported and $2.54 adjusted in Q2 FY25. Net income totalled $207 million, while adjusted net income reached $237 million.
The revenue in North America grew 13 per cent to $832 million. Comparable store sales rose 13 per cent, driven by a 12 per cent increase in physical retail and a 15 per cent surge in digital commerce. Wholesale revenue also improved by 13 per cent.
Revenue in Europe advanced 22 per cent to $688 million on a reported basis and 15 per cent in constant currency. Comparable store sales increased 10 per cent, including 8 per cent growth in physical stores and 17 per cent in online sales. Wholesale sales jumped 26 per cent.
Revenue in Asia climbed 17 per cent to $446 million, or 16 per cent in constant currency. Comparable store sales improved 16 per cent, with brick-and-mortar up 14 per cent and digital commerce soaring 36 per cent. China was a key growth driver, posting over 30 per cent revenue growth, maintaining the pace seen in the first quarter.
The company continued to strengthen its brand equity, adding 1.5 million new customers through its DTC channels and achieving high-single-digit growth in social media followers to 67 million globally.
The company’s ‘always-on’ marketing approach drove robust consumer engagement, with activations around key global events such as Wimbledon, the US Open, and the Ryder Cup. The brand also drew attention through the Spring 2026 Women’s Collection show in New York, an immersive Goodwood Revival experience in England, and prominent celebrity moments featuring Taylor Swift, Travis Kelce, and Selena Gomez, the release said.
Core categories such as Women’s Apparel, Outerwear, and Handbags grew at strong double-digit rates, outpacing total company growth. The company launched several high-impact initiatives, including the Polo Ralph Lauren for Oak Bluffs collection in partnership with Morehouse and Spelman Colleges, the Ralph’s Club New York fragrance campaign featuring Usher, and an AI-powered styling tool ‘Ask Ralph’, showcasing its blend of heritage and innovation.
The brand furthered its ‘Win in Key Cities’ strategy by opening 38 new owned and partner-operated stores during the quarter, including new locations in Munich (Germany), Plano (Texas, US), Hangzhou (China), and Nagoya (Japan). It also completed the purchase of its Newbury Street store in Boston, reinforcing its long-term retail footprint.
Ralph Lauren ended the quarter with $1.6 billion in cash and short-term investments and $1.2 billion in total debt. Inventory stood at $1.3 billion, up 12 per cent YoY and aligned with demand trends. The company also retired $400 million in senior notes due in 2025 and repurchased $63 million of Class A common stock in Q2, totalling $313 million year-to-date (YTD).
So far in FY26, Ralph Lauren has returned approximately $420 million to shareholders through 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,” said Patrice Louvet, president and chief executive 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 guidance, as the company now expects revenue growth of 5–7 per cent on a constant currency basis. The operating margin expansion of 60–80 basis points (bps), driven by cost efficiency and margin leverage. Foreign currency to provide a 30–50 bps tailwind to gross and operating margins.
For the third quarter, the company projects mid-single-digit revenue growth in constant currency, with operating margin expected to expand 60–80 basis points (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.
