Ralph Lauren lifts full-year outlook amid strong Q2 results

Ralph Lauren has raised its full-year guidance after reporting stronger-than-expected results for the second quarter of fiscal 2026, with revenues up 17% year on year to $2.0bn (£1.52bn) on a reported basis and 14% in constant currency.

Europe led growth, with revenue rising 22% to $688m (£522.2m) on a reported basis and 15% in constant currency. 

Comparable store sales in the region were up 10%, including an 8% rise in physical stores and 17% growth in digital commerce. Wholesale revenue increased 26% year on year.

For the second quarter to 27 September 2025, operating income was $246m (£186.5m), representing a margin of 12.2%. 

On an adjusted basis, operating income was $283m (£214.8m) with a margin of 14.1%, 270 basis points higher than last year. 

In Europe, operating income in the second quarter was $202m (£153.3m) and operating margin rose 360 basis points to 29.4%.

Gross profit for the quarter was $1.4bn (£1.06bn), with gross margin improving by 100 basis points to 68%. 

The company cited average unit retail (AUR) growth, a favourable product mix and lower cotton costs as key contributors to the margin gain.

For fiscal 2026, Ralph Lauren now expects revenue growth of 5% to 7% in constant currency, with foreign exchange expected to add 200 to 250 basis points. 

Operating margin is projected to expand by 60 to 80 basis points in constant currency, driven by operating expense leverage.

Patrice Louvet, president and chief executive, said: “Our second quarter performance outpaced expectations across geographies, channels and consumer segments. We are encouraged by the continued momentum through the start of the important Fall and Holiday season, enabling us to raise our full-year outlook.”