Ralph Lauren has reported a 40% jump in profit for the second quarter (Q2) of the fiscal year 2026 (FY26), with net income climbing to $207m from $148m a year earlier.
Diluted earnings per share increased to $3.32 from $2.31 a year previously.
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On an adjusted basis, net income reached $237m, or $3.79 per diluted share, compared with $162m, or $2.54, in the same quarter of the previous year.
Group revenue rose 17% to $2bn on a reported basis and was up 14% at constant exchange rates.
The growth was broad-based, with double-digit gains across all regions, led by Asia and Europe, and a 13% increase in North America.
China sales were up more than 30% year-on-year, mirroring Q1 performance.
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By GlobalDataIn North America, revenue advanced 13% to $832m.
Comparable store sales in the region rose 13%, including a 12% increase in bricks-and-mortar and a 15% rise in digital commerce.
Wholesale revenue in North America also grew 13%.
Europe delivered a 22% revenue increase to $688m on a reported basis and 15% in constant currency.
Retail comparable sales in Europe rose 10%, with bricks-and-mortar up 8% and digital commerce up 17%.
Wholesale revenue in the region increased by 26% reported and 18% in constant currency.
Asia revenue grew 17% to $446m reported and 16% in constant currency.
Comparable store sales in Asia increased 16%, including a 14% rise in physical stores and a 36% jump in digital commerce.
In Q2, gross profit reached $1.4bn, with gross margin at 68%, up 100 basis points year on year.
The company attributed margin expansion to average unit retail growth, a favourable product mix and lower cotton costs, which more than offset tariff and other product cost pressures.
Operating income was $246m, with an operating margin of 12.2% on a reported basis.
During the quarter, the company opened 38 new owned and partner locations and purchased its Newbury Street store in Boston in the US state of Massachusetts. Notable openings included Munich in Germany, Plano in Texas, Hangzhou in China and Nagoya in Japan.
For fiscal 2026, Ralph Lauren now expects revenue to increase between 5% and 7% in constant currency. It forecasts operating margin expansion of between 60 and 80 basis points in constant currency.
For Q3, the company projects revenue growth of mid-single digits in constant currency, with operating margin up 60 to 80 basis points in constant currency.
Capital expenditure for the full year is still expected to be around 4% to 5% of revenue.
Ralph Lauren president and CEO Patrice Louvet stated: “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.”
