For FY26 ending March 28, the company's revenue increased 15 percent year-over-year (YoY) to $8.1 billion as reported. Gross profit amounted to $5.7 billion, with a gross margin of 69.9 percent. Adjusted operating income rose to $1.3 billion, while adjusted operating margin expanded 200 basis points (bps) to 16 percent year-on-year.
Ralph Lauren reported strong results in FY26, with revenue increasing 15 percent year-over-year to $8.1 billion and net income rising to $941 million. Adjusted operating margin expanded 200 basis points to 16 percent. Fourth-quarter revenue grew 17 percent to $2 billion, led by Asia. For FY27, the company expects mid-single-digit revenue growth and operating margin expansion of 40-60 basis points.
“Our teams around the world executed with excellence and agility to deliver a strong first year of our next big chapter: driving the strategic plan,” he said. Patrice Louvet, president and CEO of Ralph Lauren.
He further said that while navigating a highly dynamic global operating environment, the company exceeded its financial commitments in fiscal 2026, with revenue surpassing $8 billion for the first time. The growth was supported by healthy quality of sales and balanced contributions across lifestyle categories, geographies and channels, reflecting the strength of its iconic brand and its ability to authentically connect with consumers across generations and cultures.
Net income in FY26 was $941 million, or $15.11 per diluted share, compared to $743 million, or $11.61 per diluted share, in FY25.
By region, FY26 revenue in North America increased 9 percent to $3.3 billion. Revenue in Europe rose 17 percent to $2.5 billion on a reported basis and 9 percent in constant currency. Asia revenue rose 23 percent to $2.1 billion on a reported basis and 22 percent in constant currency.
By segment, global comparable direct-to-consumer (DTC) in-store sales increased 17 percent in the fourth quarter and 13 percent for the full year, supported by positive comparable retail sales (comps) across all regions and channels. Average retail units (AUR) increased in the mid-teens for both Q4 and FY26, driven by product lift, favorable geographic and channel mix, full-price sales and lower discounts.
Ralph Lauren ended FY26 with more than $2 billion in cash and short-term investments and well-positioned inventories.
Fourth quarter revenue exceeds $2 billion
In Q4FY26, Ralph Lauren's revenue increased 17 percent year-over-year to $2 billion as reported. Net income increased to $152 million, or $2.45 per diluted share, compared with $129 million, or $2.03 per diluted share, in the fourth quarter of FY25.
Gross profit for the quarter was $1.4 billion, while gross margin expanded to 69.7 percent, 110 basis points (bps) from a year ago.
North America revenue rose 8 percent to $763 million in the fourth quarter of FY26. Comparable store sales in the region increased 16 percent, supported by a 14 percent increase in physical sales and a 21 percent increase in digital commerce. Wholesale revenues in North America were roughly flat.
Revenue in Europe grew 18 percent to $620 million on a reported basis and 6 percent in constant currency. Comparable store sales in Europe increased 5 percent, while wholesale revenue increased 19 percent on a reported basis and 7 percent in constant currency.
Asia remained the fastest-growing region, with revenue increasing 31 percent to $564 million on a reported basis and 28 percent in constant currency. Comparable store sales in Asia increased 25 percent, including 31 percent growth in digital commerce.
Operating margin will expand between 40 and 60 bp
For FY27, Ralph Lauren expects constant currency revenue to increase by mid-single digits on a comparable 52-week basis, centered around 4-5 percent. Operating margin is expected to increase between 40 and 60 basis points, driven by modest gross margin expansion and operating expense leverage. The company said FY27 is a 53-week year, with the additional week expected to add about 1 point to revenue growth.
“Looking ahead, we remain focused on driving our multiple growth drivers while continuing to lay the foundation for sustainable growth and future value creation,” added Louvet.
Fiber2Fashion News Desk (DS)
