Ralph Lauren raised its fiscal 2027 revenue and margin forecasts after second-quarter revenue increased 9%, led by Asia, while tariff refunds primarily drove reported gross-margin expansion, the company said.
Revenue reached $2.2 billion in the quarter ended Sept. 26. Net income was $297 million, compared with $207 million a year earlier. Reported diluted earnings per share rose to $4.87 from $3.32. Adjusted diluted earnings per share, which excludes restructuring-related and other net benefits, increased to $4.64 from $3.79.
The company now expects full-year constant-currency revenue growth centered on 6% to 7% on a 52-week comparable basis, up from its prior 5% to 6% outlook. Fiscal 2027 has 53 weeks; Ralph Lauren expects the additional week to contribute 1 percentage point to revenue growth. Its forecast for constant-currency operating-margin expansion is now about 80 to 100 basis points.
Asia revenue rose 28% to $571 million. North America increased 6% to $885 million, while Europe grew 1% to $696 million.
Reported gross margin reached 74.2%. Ralph Lauren said tariff refunds received during the quarter were the primary driver of the expansion. Adjusted gross margin rose to 70.5%, with the company citing higher average unit retail, favorable geographic mix and lower product costs as drivers of adjusted margin expansion.
The company also said it had returned more than $600 million to shareholders year to date through dividends and share repurchases. Its release did not identify a specific party bearing a cost from the quarter’s results or outlook.
For the third quarter, Ralph Lauren expects constant-currency revenue growth centered on 3% to 4% and operating-margin expansion of about 50 to 70 basis points. The revenue outlook includes an approximately 1-percentage-point drag from wholesale shipment timing shifts and strategic off-price reductions.
Ralph Lauren furnished its earnings release as Exhibit 99.1 to a Form 8-K filed with the Securities and Exchange Commission on Nov. 5.
