Ralph Lauren ($RL) Q1 Earnings Report

This is the earnings report for Ralph Lauren ($RL), released on 2026/08/06.

Ralph Lauren manufactures apparel, accessories, and home products for everyday use.

Earnings Performance and Financial Results Press Release

https://investor.ralphlauren.com/static-files/5aefed21-3753-4099-9db7-7d24334251e9

◆ Earnings Summary

EPS Forecast: $4.32, Result: $4.59 OK
Revenue Forecast: $1.87B, Result: $1.96B OK
Y/Y +14%

Q2 Guidance
Full-year constant currency revenue growth rate: approximately 5% to 6%

◆ Financial Results Analysis and Highlights

■ EPS/Revenue
・Revenue: $1.960B / Previous Year $1.719B / Y/Y +14% / Constant Currency Y/Y +13%
・GAAP EPS: 4.28 / Previous Year 3.52 / Y/Y +22%
・Adjusted EPS: 4.59 / Previous Year 3.77 / Y/Y +22%
・Net Income: $262.2M / Previous Year $220.4M
・Adjusted Net Income: $281.0M / Previous Year $235.8M
・Operating Income: $342.4M / Previous Year $273.6M
・Adjusted Operating Income: $365.9M / Previous Year $292.9M

■ Guidance
・Full-year constant currency revenue growth rate: approximately 5% to 6%
・FX impact on full-year revenue growth: -50 to -100 bps
・Full-year operating margin: +60 to +80 bps in constant currency
・Q2 constant currency revenue growth rate: approximately 5% to 6%
・FX impact on Q2 revenue growth: -100 to -150 bps
・Q2 operating margin: +80 to +100 bps in constant currency
・Full-year tax rate: approximately 21% to 22%
・Q2 tax rate: approximately 19% to 20%
・Full-year capital expenditure: approximately 4% to 5% of revenue
・53rd week contribution: approximately +1 percentage point to full-year revenue growth rate

■ Profitability
・Gross Profit: $1.444B / Previous Year $1.242B
・Gross Margin: 73.7% / Previous Year 72.3% / +140 bps
・Operating Margin: 17.5% / Previous Year 15.9%
・Adjusted Operating Margin: 18.7% / Previous Year 17.0% / +170 bps
・Adjusted Operating Expense Ratio: 55.0% / Previous Year 55.2%
・Effective Tax Rate: 23.4% / Previous Year 20.7%
・Adjusted Effective Tax Rate: 23.2% / Previous Year 20.7%

■ Segments
・North America Revenue: $740.3M / Previous Year $656.2M / Y/Y +13%
・North America Operating Income: $170.9M / Previous Year $135.5M
・North America Operating Margin: 23.1% / Y/Y +240 bps
・Europe Revenue: $594.4M / Previous Year $554.5M / Y/Y +7% / Constant Currency +5%
・Europe Operating Income: $156.9M / Previous Year $146.2M
・Europe Operating Margin: 26.4%
・Asia Revenue: $589.3M / Previous Year $474.0M / Y/Y +24% / Constant Currency +25%
・Asia Operating Income: $197.7M / Previous Year $145.4M
・Asia Operating Margin: 33.5% / Y/Y +280 bps

■ Stores/DTC Key Metrics
・Global Comparable Store Sales: Constant Currency Y/Y +12%
・North America Comparable Store Sales: +9%
・Europe Comparable Store Sales: +1%
・Asia Comparable Store Sales: +23%
・North America Digital: +8% / Brick-and-Mortar +10%
・Europe Digital: +6%
・Asia Digital: +32% / Brick-and-Mortar +22%
・Average Unit Retail (AUR): +15%
・DTC New Customers: 1.5M
・Social Media Followers: Over 70M / High single-digit Y/Y increase

■ Revenue by Channel
・Retail Revenue: $1.369B / Previous Year $1.201B
・Wholesale Revenue: $554.7M / Previous Year $483.5M
・Licensing Revenue: $35.8M / Previous Year $34.4M
・North America Wholesale: Y/Y +22%
・Europe Wholesale: Y/Y +11% / Constant Currency +8%
・Wholesale Growth Rate: Mid-teens company-wide

■ Products/Brands
・Core Business: Mid-teens Y/Y increase
・High-Growth Categories: Women’s Apparel / Outerwear / Handbags
・High-Growth Category Revenue: Over +20% Y/Y in constant currency
・China Revenue: Over +40% Y/Y
・New Store Openings: 22 stores
・Global Direct-Operated Stores: 600 stores / Previous Year 569 stores
・Licensed Partner Stores: 138 stores / Previous Year 120 stores

■ Costs/Cash Flow
・Selling, General, and Administrative Expenses: $1.077B / Previous Year $949.4M
・Restructuring and Other Charges: $24.8M / Previous Year $19.3M
・Operating Cash Flow: $339.3M / Previous Year $176.1M
・Capital Expenditure: $53.4M / Previous Year $187.3M
・Share Buybacks, etc.: $325.1M
・Dividends Paid: $54.8M
・Ending Cash: $1.719B
・Cash and Short-term Investments: $1.942B

■ Financials
・Inventory: $1.164B / Previous Year $1.222B / Y/Y -5%
・Accounts Receivable: $388.9M / Previous Year $396.6M
・Total Assets: $7.659B / Previous Year $7.752B
・Total Debt: $1.239B / Previous Year $1.637B
・Net Cash and Short-term Investments: $702.2M / Previous Year $639.8M
・Total Liabilities: $4.937B / Previous Year $5.236B
・Shareholders' Equity: $2.722B / Previous Year $2.515B

■ Shareholder Returns
・Q1 Share Buybacks: Approximately $250M
・Total Shareholder Returns: Over $300M
・Dividend per Share: $1.00 / Previous Year $0.9125

■ Adjustments
・Next Generation Transformation Expenses: $20.8M
・Restructuring Plan Expenses: $3.0M
・Discontinued Lease Charges, etc.: $1.0M
・Reversal of Bad Debt Expense: -$1.3M
・Operating Income Adjustment: $23.5M
・Net Income Adjustment: $18.8M
・GAAP EPS: 4.28 / Adjusted EPS 4.59

■ Summary
・Strength: Strong
・Surprise: Yes
・Rating: Positive
・Pro 1: Revenue growth / Basis: $1.960B, Y/Y +14%
・Pro 2: Adjusted operating margin improvement / Basis: Previous year 17.0%, Actual 18.7%
・Pro 3: Full-year outlook upgrade / Basis: Constant currency revenue growth rate 5% to 6%, Operating margin +60 to +80 bps
・Con 1: Increase in SG&A expenses / Basis: Previous year $949.4M, Actual $1.077B
・Con 2: Increase in effective tax rate / Basis: Previous year 20.7%, Actual 23.4%
・Con 3: Slowdown in Europe comparable store sales growth / Basis: Y/Y +1%
・Most Important Point: High AUR, DTC, and Asia growth boosted revenue and margins / AUR +15%, Asia revenue Y/Y +24%
・Investor Perspective: Attractive material / Basis: Revenue Y/Y +14%, Adjusted EPS Y/Y +22%, Full-year outlook upward revision
・Summary Reason: Revenue $1.960B / GAAP EPS 4.28 / Adjusted EPS 4.59 / Gross Margin 73.7% / Asia Revenue $589.3M / Operating Cash Flow $339.3M

That is all.

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