Ralph Lauren Raises Fiscal 2027 Growth Outlook Again

The Tip Desk · November 5, 2026 · 3 min read

Second-quarter revenue rose 9% to $2.2 billion, and the company now centers full-year constant-currency growth at 6% to 7%.

Ralph Lauren Corporation (RL) reported second-quarter Fiscal 2027 revenue of $2.2 billion, up 9% on a reported basis and 10% in constant currency, and raised its full-year constant-currency revenue outlook once more after another quarter that exceeded expectations.

The luxury lifestyle products designer now expects Fiscal 2027 constant-currency revenue to increase mid- to high-single digits, centered around 6% to 7%, up from a prior range of 5% to 6%. It also now expects operating margin to expand approximately 80 to 100 basis points in constant currency, up from its prior outlook.

Growth slowed from the first quarter, when revenue rose 14% reported and 13% in constant currency. Asia still led the second quarter.

Asia revenue increased 28% to $571 million, with comparable store sales up 24%, including a 23% increase in brick-and-mortar stores and a 31% increase in digital commerce. China revenue increased more than 35% on both a reported and constant-currency basis, the company said, driven by comparable store sales and new distribution expansion. The company opened 22 new owned and partnered stores in the quarter and launched its mobile app in Japan.

North America revenue increased 6% to $885 million. Retail comparable store sales rose 6%, with brick-and-mortar up 6% and digital commerce up 5%. Wholesale revenue increased 8%, including about 4 points of benefit from earlier timing of shipments from the second half of Fiscal 2027.

Europe revenue increased 1% to $696 million, or 3% in constant currency. Retail comparable store sales decreased 1%, with brick-and-mortar down 4% and digital commerce up 9%. Europe wholesale revenue increased 3% reported and 4% in constant currency.

Global direct-to-consumer comparable store sales rose 10%, with 9% average unit retail growth, after low-double-digit comps and 15% AUR growth in the first quarter. The company said the AUR increase reflected full-price selling, favorable geographic and channel mix, and that Core business was up 10%.

Reported gross margin was 74.2%, 620 basis points above the year-ago quarter, primarily from tariff refunds received in the period. Adjusted gross margin was 70.5%, 250 basis points above the prior year, which the company attributed to AUR growth, favorable geographic mix, and lower product costs.

Adjusted operating margin was 15.7%, 160 basis points above the prior year. Reported operating margin was 16.6%. Adjusted operating expenses were $1.2 billion, up 11%, and the adjusted operating expense rate was 54.8%.

Asia operating income was $157 million and operating margin 27.4%, up 240 basis points. North America operating income was $186 million and operating margin 21.0%, up 160 basis points. Europe operating income was $204 million and operating margin 29.4%, flat to last year.

Diluted earnings were $4.87 a share on a reported basis, up 47% from $3.32 a year earlier, and $4.64 a share on an adjusted basis, up 22% from $3.79. Net income was $297 million reported and $283 million adjusted. The effective tax rate was about 20% reported and 19% adjusted, which the company said was in line with its outlook and higher than a year earlier primarily because of the absence of favorable discrete tax benefits.

Cash and short-term investments were $1.8 billion, with $1.2 billion in total debt. Inventories were $1.2 billion, down 9% versus the year-ago period. The company repurchased about $250 million of Class A common stock in the quarter, completing Fiscal 2027 share repurchase plans at $500 million year-to-date.

For the third quarter, the company expects constant-currency revenue to grow approximately low- to mid-single digits, centered around 3% to 4%, including about 1 point of negative impact from wholesale timing shifts and strategic off-price reductions. Operating margin is expected to expand approximately 50 to 70 basis points in constant currency.