Ralph Lauren reported stronger-than-expected second-quarter fiscal 2027 results, with sales growth across all regions and higher comparable sales in both stores and digital channels. The company also raised its full-year outlook for constant-currency revenue growth and adjusted operating-margin expansion, citing better-than-expected first-half performance.
Earnings per diluted share rose on both reported and adjusted bases. Ralph Lauren said stronger full-price demand and expense discipline helped margins exceed its prior expectations, even as it continued investing in marketing and long-term growth initiatives.
Key details
- Earnings increased: Reported earnings per diluted share were $4.87, up 47% from $3.32 a year earlier. Adjusted earnings were $4.64, up 22% from $3.79; the adjusted figures exclude restructuring-related and other items.
- Revenue grew across regions: Second-quarter revenue increased 9% as reported and 10% in constant currency. Every region contributed, with Asia leading growth.
- Comparable sales strengthened: Global direct-to-consumer comparable sales rose 10%, with balanced growth in digital and brick-and-mortar channels. Average unit retail increased 9%.
- Margins outperformed expectations: Adjusted gross and operating margin expansion exceeded the company’s outlook. Ralph Lauren attributed the performance to strong full-price demand and expense discipline, which more than offset continued investment in marketing and longer-term growth priorities.
- Full-year outlook raised: The company increased its fiscal 2027 outlook for constant-currency revenue and adjusted operating-margin expansion, reflecting stronger-than-expected first-half results. The announcement provided here does not include the revised numerical targets.
- Cash and shareholder returns: Ralph Lauren reported $1.8 billion in cash and short-term investments and said inventories were positioned to meet global demand. It returned more than $600 million to shareholders through dividends and Class A share repurchases during the fiscal year to date.
The results point to growth in both sales and average selling value, alongside improved margins. The higher outlook reflects the company’s stronger first-half performance; the available announcement does not specify the new full-year guidance figures.