Ralph Lauren ups FY guidance as Q3 results exceed market expectations

Ralph Lauren Corporation reported strong results in the third quarter of the 2025/26 financial year, backed by solid demand across regions and continued momentum in key product categories. The US-based premium group exceeded market expectations and raised its outlook for the full year.

In the third quarter, ended December 27, 2025, Ralph Lauren increased revenue by 12 percent to 2.4 billion dollars. Adjusted for currency effects, sales rose by 10 percent. Growth was driven by balanced performance across D2C and wholesale channels, as well as strong full-price selling.

Direct-to-consumer comparable store sales grew at a high-single-digit rate globally. Both physical stores and digital commerce contributed to the increase, while global wholesale revenues rose by double digits.

Its adjusted gross and operating margin, sitting at 69.9 percent and 19.6 percent, respectively, came ahead of projections, boosted by strong full-price sales and expense leverage, which the company said offset increased tariffs.

Product demand strongest in core and growth categories

On the product side, Ralph Lauren saw continued momentum in its core business, which grew at a low double-digit rate year-on-year. Sweaters and knit tops were the main growth drivers in this segment.

High-potential categories outperformed the group average. Women’s apparel, outerwear and handbags recorded growth in the high-teens, supported by strong demand for women’s sweaters, mid-weight down jackets, tailored coats and the company’s core handbag lines.

The group also benefited from a positive product mix and a higher average unit retail price, which rose by 18 percent in the direct-to-consumer business due to lower promotional activity and strong full-price sales, reflecting “continued elevation”.

Asia leads geographical growth

Geographically, Asia delivered the strongest growth, with revenues rising by 22 percent. Sales in China increased by more than 30 percent, supported by strong brand momentum and growing digital demand. Comparable store sales in the region rose by 20 percent.

In Europe, revenues grew by 12 percent on a reported basis and 4 percent in constant currency. Comparable store sales were driven by a 5 percent increase in digital commerce, which was partially offset by a 1 percent decrease in physical store revenue. The region’s wholesale unit saw revenues increase 16 percent on a reported basis.

North America recorded an 8 percent uptick to 1.1 billion dollars on a reported basis, with comparable store sales up 7 percent, brick and mortar performance up 6 percent and digital commerce rising 7 percent. Wholesale revenue increased 11 percent.

Based on the performance in the first nine months of the year, Ralph Lauren raised its full-year outlook and now projects revenue growth in the high-single to low-double-digit range on a constant currency basis, alongside further operating margin expansion.