Ralph Lauren (RL) Q4 2026 earnings summary

Executive summary

• Delivered strong financial and operational results, exceeding top and bottom-line expectations with broad-based growth across categories, geographies, and channels.

• Full-year revenues surpassed $8 billion for the first time, reaching $8.1 billion, with operating margins and net income exceeding expectations.

• Global direct-to-consumer comparable store sales increased 17% in Q4 and 13% for the year, with strong full-price selling and mid-teens AUR growth.

• Accelerated returns to shareholders, including a 10% dividend increase and over $700 million returned via dividends and repurchases.

• Invested in long-term strategic priorities such as brand activations, AI capabilities, and key city expansion.

Financial highlights

• Fourth quarter revenue grew 12% year-over-year, led by Asia (+28% constant currency), North America (+8%), and Europe (+6% constant currency); Q4 revenue rose 17% to $2.0 billion.

• Q4 gross margin was 69.7%, up 110 bps; full year gross margin was 69.9%, up 130 bps.

• Adjusted Q4 operating margin was 11.0%, up 70 bps; full year adjusted operating margin was 16.0%, up 200 bps.

• Free cash flow of $750 million and over $700 million returned to shareholders via dividends and repurchases.

• Ended FY26 with $2.1 billion in cash and short-term investments, $1.2 billion in total debt, and inventories up 7% year-over-year.

Outlook and guidance

• Fiscal 2027 revenue expected to grow mid-single digits (4%-5%) in constant currency, with a 53rd week adding ~1 point to growth.

• Operating margin projected to expand 40-60 bps, with gross margin expansion and expense leverage offsetting increased brand investments.

• By region: North America and Europe to grow low single digits, Asia high single digits, and China mid-teens.

• Marketing spend to reach ~8% of sales in fiscal 2027, continuing above revenue growth rate.

• FY27 tax rate projected at 21–22%; capital expenditures planned at 4–5% of revenue.