AI Takeaway
Ralph Lauren Corporation delivered strong FY2026 results with net revenues up 14.6% to $8.115 billion, operating margin expanding 130 basis points to 14.5%, and diluted EPS growing 30.1% to $15.11, driven by broad-based growth across all reportable segments and AUR-led gross margin expansion.
Revenue
$8.11B
++14.63% YoY
EPS (Basic)
$15.42
++30.02% YoY
Gross Margin
69.9%
++1.31% YoY
Operating Income
$1.18B
++26.51% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Net revenues increased 14.6% (11.8% constant currency) to $8.115 billion, with North America up 9.2% to $3.330B, Europe up 16.7% to $2.539B, and Asia up 23.1% to $2.104B. Total comparable store sales grew 13%, driven by mid-teens AUR growth and higher traffic, with digital commerce comps up 16% versus 12% for brick and mortar.
Source: 10-K Item 7 MD&A
Gross profit margin rose 130 bps to 69.9%, driven by AUR growth, product elevation, and favorable FX effects (30 bps), more than offsetting pressure from tariffs and non-cotton product costs; SG&A as % of revenue improved 70 bps to 53.9% due to operating leverage.
Source: 10-K Item 7 MD&A
The company incurred $118.1 million in net restructuring-related and other charges in FY2026 (vs. $57.8 million in FY2025), including $83.9 million tied to the NGT project (a multi-year global ERP and direct-to-consumer transformation), reducing net income by $92.1 million or $1.48 per diluted share.
Source: 10-K Item 7 MD&A
2 more insights available
Upgrade to unlockNew U.S. tariffs under IEEPA were invalidated by the Supreme Court in February 2026, followed by a new tariff round under the U.S. Trade Act; refunds of previously collected tariffs are uncertain and profitability would be negatively impacted if tariffs increase significantly across the supply chain.
Source: 10-K Item 1A
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $2.80 versus the $2.63 analyst consensus — a +6.6% beat for FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $8.11B | $7.08B | +14.63% |
Cost of Revenue | $2.45B | $2.23B | +9.85% |
Gross Profit | $5.67B | $4.85B | +16.82% |
Operating Income | $1.18B | $932.1M | +26.51% |
Net Income | $941.1M | $742.9M | +26.68% |
EPS (Basic) | $15.42 | $11.86 | +30.02% |
EPS (Diluted) | $15.11 | $11.61 | +30.15% |
SG&A Expense | $4.37B | $3.86B | +13.17% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $7.74B | $7.05B | +9.82% |
Current Assets | $3.89B | $3.79B | +2.57% |
Total Liabilities | $4.9B | $4.46B | +9.85% |
Current Liabilities | $1.83B | $2.13B | -14.40% |
Stockholders' Equity | $2.84B | $2.59B | +9.77% |
Cash & Equivalents | $1.99B | $1.92B | +3.41% |
Long-Term Debt | $1.24B | $742.9M | +66.77% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.15B | $1.24B | -6.55% |
Investing Cash Flow | $-356.6M | $-264.1M | -35.02% |
Financing Cash Flow | $-769.7M | $-704M | -9.33% |
Share Buybacks | $623.8M | $480.9M | +29.72% |
D&A | $233M | $219.6M | +6.10% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 69.9% | 68.6% | +1.31% |
Operating Margin | 14.5% | 13.2% | +1.36% |
Net Margin | 11.6% | — | — |
ROE | 33.1% | — | — |
ROA | 12.2% | — | — |
Current Ratio | $2.128 | — | — |
Debt to Equity | $1.724 | — | — |
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The filing does not disclose analyst consensus estimates, but Ralph Lauren reported diluted EPS of $15.11 in FY2026, up 30.1% from $11.61 in FY2025, alongside net revenue growth of 14.6% to $8.115 billion, indicating strong operational performance for the period.
Ralph Lauren grew net revenues 14.6% to $8.115 billion with growth across all segments, expanded gross margin by 130 basis points to 69.9%, and grew operating income 26.5% to $1.179 billion, despite $118.1 million in restructuring and NGT project-related charges.
North America net revenues grew 9.2% to $3.330 billion, Europe grew 16.7% to $2.539 billion, and Asia grew 23.1% to $2.104 billion, with Asia showing the strongest constant-currency growth at 21.5%, according to the FY2026 10-K MD&A.
Key risks included tariff and trade policy volatility following the Supreme Court's invalidation of IEEPA tariffs in February 2026, dependence on Ralph Lauren's personal involvement in the brand, execution risk on the multi-year Next Generation Transformation project, and inventory/margin pressure from a promotional retail environment.
Ralph Lauren ended FY2026 with $1.988 billion in cash, a current ratio of 2.13, and stockholders' equity of $2.841 billion, though long-term debt rose 66.8% to $1.239 billion; the company generated $1.154 billion in operating cash flow while returning capital via $623.8 million in share buybacks and $216.5 million in dividends.