Ralph Lauren Q1 income, revenues surge
Ralph Lauren Corp. easily topped analysts’ expectations for its first quarter with a strong performance across geographies, and raised its outlook for the year.
The luxury apparel and accessories company reported that its income rose 30.7% to $220.4 million in the quarter ended June 28, up from $168.6 million in the year-ago period. Adjusted income rose 34.9% to $236 million, or $3.77 per share, topping the $3.50 earnings per share analysts forecast.
Revenues rose 14% to $1.7 billion. By geography, revenues were led by double-digit growth in Asia and Europe. Global direct-to-consumer comparable store sales grew 13%, driven by positive retail comps across regions and channels. The average unit retail prices increased 14%.
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North American revenues increased 8% to $656 million. Comparable store sales in North America increased 12%, with a 10% increase in brick-and-mortar stores and a 19% increase in digital commerce. North America wholesale revenue increased 2%.
Ralph Lauren's average unit retail prices increased 14%.
"We delivered strong first quarter results across geographies, channels and consumer segments," said Patrice Louvet, president and CEO. "While we continue to approach the current global operating environment with prudence, we are encouraged by the broad-based strength in our brand and our businesses as we execute on our long-term strategic priorities — including recruiting new and younger consumers, strengthening our core and high-potential categories, and developing our key city ecosystems in each region,” he
Ralph Lauren now expects its full-year revenues will increase in the low- to mid-single digits (on a constant currency basis), up from its earlier estimate of low-single digit growth. The operating margin for fiscal 2026 is now expected to expand by 40 to 60 basis points. Previously, the company said that it would grow operating margin only “modestly.”
"What we stand for — aspiration, optimism, individuality and authenticity — inspires people in every corner of the world," said Ralph Lauren, executive chairman and chief creative officer. "And we are bringing these values to life and inviting people to step into their dreams in new and powerful ways — from our first-ever fashion presentation in Shanghai this April to our MLB World Tour Tokyo Series activations and our Women's Polo presentation in Paris."
