10-K · May 21, 2026
Ralph Lauren Corporation reported strong financial results for Fiscal 2026, with net revenues increasing by 14.6% year-over-year to $8.115 billion, alongside a gross margin improvement to 69.9% and net income rising to…
Earnings analysis · 10-Q
RL earnings analysis
Filed November 5, 2026 · Our reading of the company's report
The latest report
Ralph Lauren delivered strong second-quarter performance, with revenue up 9.1% year over year to $2.193 billion, diluted EPS up 46.7% to $4.87, and operating margin expanding 440 basis points to 16.6%. Asia drove…
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Ralph Lauren delivered strong second-quarter performance, with revenue up 9.1% year over year to $2.193 billion, diluted EPS up 46.7% to $4.87, and operating margin expanding 440 basis points to 16.6%. Asia drove growth, while North America was solid and Europe retail remained soft. Cash generation improved materially in the first six months, but reported margin benefited from an $82.3 million tariff refund, and SG&A intensity, transformation charges, and substantial shareholder returns warrant monitoring.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $4.87
What stood out
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Strong revenue and EPS growth
Net revenue increased 9.1% year over year to $2.193 billion, while net income rose 43.0% to $296.6 million. Diluted EPS increased 46.7% to $4.87 from $3.32 and exceeded the $4.26 consensus estimate.
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Material margin expansion
Gross margin expanded 620 basis points year over year to 74.2%, and operating margin increased 440 basis points to 16.6%. Operating income rose 48.0% to $363.7 million.
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Asia led global growth
Asia was the primary growth engine, with revenue up 28.2% to $571.3 million and comparable-store sales up 24%; Asia operating margin improved 240 basis points to 27.4%.
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North America growth offsets Europe softness
North America revenue grew 6.4% to $885.6 million, supported by a $28.5 million increase in retail revenue and a $24.7 million increase in wholesale revenue. Europe revenue increased 1.1% to $696.0 million despite a 1% decline in comparable retail sales.
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Cash generation improved
Six-month operating cash flow increased to $618.2 million from $229.3 million, while capital expenditures declined to $114.2 million from $281.1 million, implying approximately $504.0 million of six-month operating cash flow less capex.
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Liquidity remains strong
The company maintained substantial liquidity with $1.822 billion of cash, cash equivalents, and short-term investments at September 26, 2026, plus $741 million of remaining availability under its Global Credit Facility and Commercial Paper Program.
What to watch
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Margin benefit dependent on tariff refund
Approximately half of the 620-basis-point gross-margin improvement was attributable to $82.3 million of IEEPA tariff refunds, creating a potentially non-recurring benefit. Management warns that future tariff actions could increase product costs and pressure profitability.
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Higher operating expense intensity
SG&A expense increased 10.9% to $1.201 billion and rose to 54.8% of revenue from 53.9%, driven by $33.0 million of higher marketing expense, $25.7 million of higher rent and occupancy costs, and $11.4 million of higher selling expenses.
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Europe retail traffic weakness
Europe retail revenue declined $2.3 million year over year, and comparable Europe retail sales fell 1%, with brick-and-mortar comparable sales down 4% due to lower traffic.
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Transformation and other charges
Six-month net restructuring and other charges were $88.0 million, including $44.7 million related to the Next Generation Transformation project and $33.2 million of charitable donations funded by tariff refunds.
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Capital returns reduced net cash
Cash and cash equivalents declined $561.9 million to $1.426 billion from March 28, 2026, while net cash and short-term investments declined $244.3 million to $581.8 million, primarily after $626.6 million of share repurchases and $114.4 million of dividends.
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Higher supplier-finance obligations
Supplier-finance obligations recorded in accounts payable increased to $243.2 million from $172.1 million at March 28, 2026, a $71.1 million increase that could affect working-capital liquidity if supplier participation changes.
Management's outlook
The 10-Q does not provide quantitative revenue or EPS guidance. Management states that existing liquidity sources are sufficient to support operating, capital, and debt-service requirements for the foreseeable future; the quantitative Fiscal 2027 outlook was provided outside this filing.
Earlier filings 4
10-Q · August 7, 2025
Ralph Lauren reported quarterly revenue of $1,719.1 million, up from $1,512.2 million a year ago (+$206.9 million, +13.7%), with gross profit of $1,242.3 million and gross margin expanding to 72.3% from 70.5%. Operating…
10-K · May 22, 2025
Ralph Lauren's 10-K emphasizes a strategic pivot to a global direct-to-consumer model supported by a multi-year Next Generation Transformation (NGT) technology and process program; the company reported discrete…
10-Q · August 7, 2024
Ralph Lauren reported a modest revenue increase to $1,512.2 million (up $15.7 million vs. $1,496.5 million a year earlier) with expanding margins and higher profitability. Gross profit rose to $1,065.8 million and…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.