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Ralph Lauren Corporation reported first-quarter Fiscal 2027 revenue up 14% on a reported basis to $2.0 billion, the company announced on 6 August 2026.
A Strong First Quarter Sets the Tone for the Year Ahead: The Key Highlights |
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The company opened Fiscal 2027 on a stronger-than-expected footing, with first-quarter revenue rising 14 per cent on a reported basis and 13 per cent in constant currency. Growth was led by Asia and North America, underscoring resilient demand across two of its most important markets. |
| Direct-to-consumer performance was particularly strong. Comparable sales increased by low double digits globally, supported by both e-commerce and physical retail, while average unit retail rose 15 per cent. Wholesale also gained momentum, accelerating to mid-teens growth as underlying demand remained healthy. |
| Profitability outpaced expectations, too. Adjusted gross and operating margins expanded more than initially forecast, helped by strong full-price selling and disciplined cost management. Those gains were sufficient to offset an increase in marketing investment as the company continued to spend behind brand visibility and long-term growth. |
| The balance sheet remains a point of strength. The company ended the quarter with $1.9 billion in cash and short-term investments, while inventory levels were described as well positioned against global demand. |
| Shareholders also benefited from the stronger quarter, with more than $300 million returned through dividend payments and share repurchases. |
| Following the better-than-expected start to the year, management raised its full-year Fiscal 2027 outlook for constant-currency revenue growth and adjusted operating margin expansion – signalling greater confidence in the company’s momentum for the months ahead. |
Handbags, Women’s Apparel, and Outerwear grew more than 20% combined in constant currency, ahead of the company’s overall pace. The broader Core business grew in the mid-teens.
Spring ’26 collections built around breezy silhouettes for women and voyager-inspired tailoring for men anchored the season, alongside a Wimbledon capsule timed to the tennis calendar. Two new Home collections, Sterling Square and Saddlebrook, debuted at Milan’s Salone del Mobile.
Global comparable store sales rose 12% in constant currency across the company’s entire network, spanning both digital and physical retail.
Asia produced the largest gains of the three regions. Revenue there rose 24% on a reported basis and 25% in constant currency, with comparable store sales up 23%, driven by a 32% jump in digital commerce and a 22% rise in brick-and-mortar sales. China alone grew more than 40% year over year.
North America revenue rose 13% to $740 million, with comparable store sales up 9%, made up of 10% growth in brick-and-mortar stores and 8% growth online. The company attributed part of the regional growth to a wholesale account resuming shipments, along with deliveries originally scheduled for the fourth quarter of Fiscal 2026 that had been delayed into this period instead.
Europe’s revenue rose 7% on a reported basis and 5% in constant currency, with comparable store sales up just 1%. Digital commerce there climbed 6%, while brick-and-mortar sales held roughly flat.
Ralph Lauren released American Icons, a collection of commemorative US postage stamps developed in partnership with the brand, tied to America’s 250th anniversary. The company also staged its first Ralph Lauren Polo Cup events in Beijing and Sydney, marking the tournament’s debut in both cities.
Ralph Lauren Catwalk, a new book documenting more than 50 years of the brand’s Collection runway history, was published in the same period. On the customer side, the direct-to-consumer business added 1.5 million new shoppers, and social media followers surpassed 70 million, up a high single-digit percentage year over year.
Ralph Lauren also flagged its Spring ’27 Men’s Fashion Show, staged in Milan, as one of the quarter’s key brand moments, part of a wider calendar that has kept the label’s runway presence firmly in the city alongside its established womenswear Collection shows.
The brand has not detailed casting, staging, or a specific show date beyond confirming Milan as the location, but the mention signals continued investment in menswear as a growth category following a quarter in which Outerwear was among the fastest-growing segments company-wide.
President and CEO Patrice Louvet said, “We are off to a strong start in the second year of our Next Great Chapter: Drive plan,” pointing to continued investment in recruiting younger shoppers and building out the brand’s presence in key cities globally.
Executive Chairman and Chief Creative Officer Ralph Lauren said, “I’m reminded of what has inspired us for nearly 60 years,” citing optimism and authenticity as values the brand’s teams carry forward.
Constant currency revenue is now expected to grow 5% to 6% for Fiscal 2027, up from an earlier mid-single-digit forecast. Operating margin is projected to expand 60 to 80 basis points in constant currency.
Foreign currency is expected to weigh on revenue growth by 50 to 100 basis points across the full year. This fiscal year also runs 53 weeks rather than the standard 52. Management expects that extra week to add roughly a point to annual revenue growth on its own.
For the second quarter, the company guided to constant currency revenue growth centred around 5% to 6%, with operating margin expanding 80 to 100 basis points.
Twenty-two new owned and partnered stores opened in the period. Notable additions included a location at The Grove in Los Angeles and a store at Stanford Shopping Center in Palo Alto that also houses the brand’s second Ralph’s Coffee outpost in California. The company also opened its first store in Istanbul and added new Polo shops in both Sydney and Perth.
Asia carries 603 concessions, the company’s largest concentration by far, compared with 29 in Europe and none in North America. Directly operated stores globally climbed to 600 from 569 a year earlier, while licensed partner stores worldwide increased to 138 from 120.
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