Ralph Lauren On a Run in Q2 With 17% Revenue Gain

Ralph Lauren Corp. is riding the momentum it’s built in years of working to elevate its brand position.

Revenues jumped 17 percent to $2 billion in the fiscal second quarter, an increase of 14 percent in constant currencies. North American net revenues increased 13 percent while Europe was up 22 percent and Asia moved ahead by 17 percent.

That was driven, in part, by a 12 percent increase in average unit retail prices in the company’s direct to consumer network, where the company has steadily been adjusting exactly where it sells what and for how much to get the most out of the market.

Net profits increased almost 40 percent to $207.5 million in the quarter. Adjusted earnings per share tallied $3.79 — well ahead of the $3.45 analysts had penciled in, according to Yahoo Finance. Adjusted operating income hit $283 million for a margin of 14.1 percent, an improvement of 270 basis points from a year earlier.

Ralph Lauren investors, who have grown to have big expectations for the company, traded its shares up 2.8 percent to $325.80 in premarket trading.

Patrice Louvet, president and chief executive officer, told WWD that the numbers spoke for themselves — although he was more than happy to speak for them as well.

“This broad-based momentum gives us confidence to raise our outlook on both the top line and margin,” Louvet said.

Ralph Lauren is now looking for fiscal 2026 sales to rise 5 to 7 percent in constant currencies, up from the low to middigit increase forecast in August. And operating margins are slated to expand by 60 to 80 basis points, up from the 40 to 60 points previously seen.

Louvet also hedged just a little.

“We’ve also called for some caution. This is consistent with what we said in prior quarters,” he said, pointing to “some caution on the back half based on the potential macro impact of tariffs on consumers broadly in the U.S. If we think about potential pricing actions across sectors, and I’m thinking food, I’m thinking many different sectors that obviously touch people’s lives and the potential macro impacts that we’ll see there. So that’s why we’re calling out from some caution, but we’re raising the guidance. We have momentum, we have broad based growth across the consumer segments, key regions and key channels. Our mindset continues to be on offense.”

And Ralph Lauren, executive chairman and chief creative officer, is continuing to dream the Ralph Lauren dream.

“For more than 58 years, we have inspired authentic, timeless style, reflecting the easy sophistication of a life well-lived,” he said. “From the streets of Tokyo and Paris to the intimacy of our runway show in our New York City design studio, we are inviting more people than ever to step into their dream of a better life.”