RL · Ralph Lauren Corporation

Ralph Lauren's fourth quarter and full year fiscal 2026 results exceeded expectations, driven by strong global demand across regions and channels. Revenue growth was broad-based: North America up 8%, Europe up 18% (6% constant currency), and Asia up 31% (28% constant currency), with Asia leading on Lunar New Year momentum. Global direct-to-consumer comparable store sales increased 17% in Q4 and 13% for the full year, supported by mid-teens average unit retail (AUR) growth and reduced discounting. Gross margin expanded 110 bps to 69.7% in Q4, aided by favorable mix, AUR growth, and lower cotton costs, partially offset by higher U.S. tariffs. Adjusted operating margin reached 11.0% in Q4 (up 70 bps) and 16.0% for the full year (up 200 bps). Management highlighted the successful first year of the 'Next Great Chapter: Drive' strategic plan, which delivered over $8 billion in annual revenue for the first time. Looking ahead, the company provided fiscal 2027 guidance for constant currency revenue growth of 4-5% and operating margin expansion of 40-60 bps, with stronger first-half performance due to lower tariff rates. The 53rd week will add approximately 1 point to revenue growth. The board also approved a 10% dividend increase, reflecting confidence in the business and balance sheet strength.