$RL · RALPH LAUREN CORP
Ralph Lauren reported Q2 FY2027 (ended September 26, 2026) results ahead of expectations and raised its full-year outlook. Revenue increased 9% to $2.193B on a reported basis (10% constant currency), led by 28% Asia growth. Adjusted EPS was $4.64, up 22% year over year, versus $3.79 a year ago; GAAP diluted EPS was $4.87. Gross margin was 74.2% reported (70.5% adjusted), with reported expansion driven by tariff refunds. The company raised FY2027 constant-currency revenue guidance to 6%-7% (from 5%-6%) and now expects 80-100 bps of operating margin expansion.
- Revenue rose 9% to $2.193B, up 10% in constant currency.
- Adjusted EPS of $4.64 was up 22% year over year.
- Asia revenue grew 28% to $571M; China revenue up over 35%.
- Gross margin hit 74.2% reported, aided by tariff refunds.
- FY2027 constant-currency revenue outlook raised to 6%-7% from 5%-6%.
Extended-hours last trade of $390.90 is down 5.14% versus the regular close, despite the beat and raised guidance, suggesting profit-taking or concern over the tariff-refund-driven gross margin. Regular session had not yet opened at filing.
A beat-and-raise quarter with Asia momentum, but the after-hours selloff flags investor skepticism over tariff-refund-inflated margins.
Luxury lifestyle peers are navigating tariff and FX headwinds; Ralph Lauren's Asia-led growth and AUR elevation contrast with softer Europe brick-and-mortar comparable sales.
Reported gross margin expansion was driven by tariff refunds, a non-recurring benefit; adjusted gross margin expansion of 250 bps is the cleaner signal. Europe comparable store sales declined 1% with brick-and-mortar down 4%.