Ralph Lauren Q1 FY2027: Revenue Jumps 14% to $1.96B, EPS $4.28, Raises Full-Year Outlook
RL sits 48% above its 52-week low of $273.04 on light trading volume (0.2× avg).
Summary
Ralph Lauren posted Q1 FY2027 revenue of $1.96B (+14% YoY) and raised its full-year revenue growth outlook to 6-8%, driven by broad-based strength across all regions and channels.
Key Events · Earnings and Guidance · RL
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Revenue Surges 14% to $1.96B
Q1 FY2027 net revenues rose 14% to $1.96 billion, with double-digit growth in North America (+12.8%), Europe (+7.2%), and Asia (+24.3%). Comparable store sales increased 12% globally, led by a 23% jump in Asia.
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Full-Year Revenue Outlook Raised
Management raised its constant currency revenue growth guidance to 6-8% for Fiscal 2027, up from the prior 3-5% range, reflecting strong momentum and confidence in the brand elevation strategy.
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Margins Expand Significantly
Gross margin improved 140 bps to 73.7%, driven by mid-teens AUR growth and favorable channel/geographic mix. Operating margin expanded 160 bps to 17.5%, with operating income up 25% to $342.4 million.
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Capital Returns Accelerate
The company repurchased $325 million in stock during the quarter and increased its quarterly dividend by 10% to $1.00 per share. $1.1 billion remains under the current repurchase authorization.
Analysis · RL · Manufacturing
Ralph Lauren delivered a standout quarter, with revenue up 14% to $1.96 billion and adjusted EPS of $4.59, beating expectations. The company raised its full-year revenue growth outlook to 6-8% on a constant currency basis, up from 3-5% previously, signaling confidence in sustained demand. Gross margin expanded 140 basis points to 73.7%, driven by higher average unit retail prices and favorable channel mix, while operating margin improved 160 basis points to 17.5%. The strong results and raised guidance come despite a challenging macroeconomic backdrop, including tariff uncertainty and foreign exchange headwinds. The company also continued its aggressive capital return program, repurchasing $325 million in stock and raising its dividend 10% to $1.00 per share.
At the time of this filing, RL was trading at $404.19 on NYSE in the Manufacturing sector, with a market capitalization of approximately $24.1B. The 52-week trading range was $273.04 to $421.60. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.