Fashion brand Ralph Lauren has reported that its financial performance in the first quarter (Q1) of the fiscal year 2026 (FY26) exceeded expectations with a 14% increase in net revenue to $1.7bn.
Favourable foreign currency supported the revenue growth by 230 basis points.
The brand witnessed strong retail sales growth across North America, Europe and Asia.
Ralph Lauren president and CEO Patrice Louvet stated: "We delivered strong first quarter results across geographies, channels and consumer segments."
Ralph Lauren achieved a gross profit of $1.2bn, with gross margin reaching 72.3%, an increase of 180 basis points over the previous year.
Gross margin expansion was primarily attributed to the growth in average unit retail, advantageous shifts in channel and geographic sales mix, and a reduction in cotton costs, which collectively outweighed the additional costs arising from tariffs and other product-related expenses.
Net income for the quarter was $220m - $3.52 per diluted share - on a reported basis, and $236m - $3.77 per diluted share - on an adjusted basis.
Ralph Lauren's Q1 saw a surge in new customer acquisition and loyalty, with 1.4 million new consumers in their direct-to-consumer businesses.
Global direct-to-consumer comparable store sales saw a 13% increase, propelled by positive retail comparisons across regions and channels.
Ralph Lauren raised its full year 2026 outlook to low to mid-single-digit revenue growth on a constant currency basis, with foreign currency expected to provide a positive impact by between 150 and 200 basis points.
It expects operating margin expansion between 40 to 60 basis points in constant currency, driven by operating expense leverage.
In the second quarter, revenues are projected to grow in the high-single digits on a constant currency basis, with further margin expansion anticipated.
The company is expecting its capital expenditures to remain between 4% and 5% of revenue in FY26.
Louvet added: "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."
