Ralph Lauren Corporation (NYSE:RL) delivered stronger-than-expected first-quarter results on Thursday, beating Wall Street forecasts for both earnings and revenue as robust demand across Asia and North America helped lift sales. The apparel group also upgraded its outlook for the full fiscal year, sending its shares 4% higher in premarket trading.
Adjusted earnings came in at $4.59 per share, comfortably ahead of analysts’ consensus estimate of $4.24. Revenue reached $1.96 billion, surpassing expectations of $1.85 billion. Sales increased 14% on a reported basis, or 13% in constant currency, compared with the same period last year.
Strong quarter prompts higher fiscal 2027 guidance
Following the stronger-than-expected start to the year, Ralph Lauren raised its financial outlook for fiscal 2027.
The company now expects constant currency revenue growth of approximately 5% to 6% for the full year, an improvement on its previous guidance. It also forecasts operating margin expansion of around 60 to 80 basis points on a constant currency basis, reflecting increased confidence in profitability.
President and Chief Executive Officer Patrice Louvet said, “We are off to a strong start in the second year of our Next Great Chapter: Drive plan, with broad-based performance across geographies, channels and consumer segments in the first quarter — exceeding our expectations and driving an increase in our full year fiscal 2027 outlook.”
Asia delivers standout growth
Asia remained the company’s strongest-performing region, with revenue climbing 24% on a reported basis and 25% in constant currency to $589 million. Sales in China increased by more than 40% compared with the previous year.
North American revenue rose 13% to $740 million, while Europe delivered reported growth of 7%, or 5% in constant currency, with revenue reaching $594 million.
Global comparable sales across Ralph Lauren’s direct-to-consumer stores increased at a low double-digit rate, while average unit retail prices advanced 15% throughout the direct-to-consumer network.
Profitability and shareholder returns improve
Adjusted operating margin expanded by 170 basis points to 18.7%, supported by resilient full-price demand and disciplined cost management.
The company ended the quarter with $1.9 billion in cash and short-term investments and returned more than $300 million to shareholders through dividends and share repurchases.
Looking ahead, Ralph Lauren expects second-quarter revenue to increase approximately 5% to 6% on a constant currency basis, while operating margin is projected to improve by approximately 80 to 100 basis points.
Ralph Lauren stock price
