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Ralph Lauren Corp (MX:RL)
:RL
Mexico Market
EarningsQ1 2027 Earnings Report

Ralph Lauren (RL) Q1 2027 Earnings Report

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MX:RL Q1 2027 EPS Results

Actual EPS$78.34
Consensus EPS$73.78
Beat/MissBeat by +$4.56
One Year Ago EPS$64.35

MX:RL Q1 2027 Revenue Results

Actual Revenue$33.45B
Expected Revenue$31.85B
Beat/MissBeat by +$1.60B
YoY Revenue Growth+14.00%

Earnings Announcement Details

QuarterQ1 2027
Date08/06/2026
TimeBefore Open
Conference CallThursday, August 6, 2026
MX:RL Upcoming Earnings
Ralph Lauren's next earnings date is estimated for November 5, 2026, based on past reporting schedules.

Q1 2027 Earnings Call Audio

MX:RL Q1 2027 Earnings Call
0:00 / 0:00

Q1 2027 Earnings Slide Deck

No slide deck is available for this earnings event.

Q1 2027 Earnings Call Summary

Q1 2027
Earnings Call Date:Aug 06, 2026|
% Change Since:
|
Earnings Call Sentiment|Positive
The call conveyed broad-based, high-quality growth with meaningful margin expansion, strong customer acquisition, and elevated brand momentum — particularly driven by Asia/China and digital — while acknowledging regional macro pressures (notably Europe), tariff and FX headwinds, and planned channel/wholesale rationalization that will pressure back-half cadence. On balance, positive operational and financial execution outweigh near-term risks.
Company Guidance
Ralph Lauren raised its fiscal 2027 outlook after a strong Q1 and now expects constant‑currency revenue growth mid‑single digits centered around 5–6% (up from 4–5%), with foreign exchange headwinds of roughly 50–100 bps and a 53rd week adding ~1 point to revenue; by region it forecasts North America ~low‑single‑digit growth, Europe ~low‑ to mid‑single digits, and Asia ~high‑single to low‑double digits. The company now expects full‑year operating margin expansion of ~60–80 bps (up from 40–60) and gross margin expansion of ~50–70 bps, with AUR growth of mid‑ to high‑single digits for Q2 and the full year; Q2 revenue is guided mid‑singles centered 5–6% with FX ~‑100 to ‑150 bps and Q2 operating margin expansion of ~80–100 bps. Other guidance/assumptions: tariffs ~10% in H1 then reciprocal high‑teens in H2, FX roughly neutral to margins, Q2 tax rate ~19–20% (FY ~21–22%), marketing around ~8% of sales for FY27; Q1 metrics included revenue +13%, adjusted gross margin +130 bps to 73.6%, adjusted operating margin +150 bps to 18.5%, DTC comps +12% and wholesale +13%, added 1.5M new DTC customers, returned >$300M to shareholders, $1.9B cash and $1.2B debt, and net inventory down ~3% (constant currency).
Quarterly Revenue Growth
Total company revenue increased 13% in Q1 (constant currency), ahead of mid- to high single-digit outlook and driven by broad-based performance across regions and channels.
Strong Regional Performance — Asia and China
Asia led growth with revenue up 25%; Greater China sales increased over 40% in the quarter, supported by local activations, city cluster expansion and strong digital demand.
North America and Europe Progress
North America revenue grew 13% (retail comps +9%, digital comps +8%); Europe grew 5% despite tougher compares, with improvements in digital and selective markets (Germany, Italy, Spain).
Channel and Comp Strength
Global direct-to-consumer and wholesale comps were healthy, with global retail comps up 12%; total digital ecosystem sales grew mid-teens, led by owned sites and wholesale digital accounts.
Pricing and Mix Gains — AUR and Gross Margin
Average unit retail (AUR) increased 15%; adjusted gross margin expanded ~130 basis points to 73.6% (constant currency), driven by higher full-price selling, favorable channel/geo/product mix and disciplined inventory management.
Profitability and Operating Leverage
Adjusted operating margin expanded ~150 basis points to 18.5% and operating income grew 23%; adjusted operating expenses rose 13% but declined 10 bps as a percent of sales, with 90 bps of non-marketing expense leverage.
Customer Acquisition and Brand Momentum
Added 1.5 million new DTC customers in Q1; social followers grew high single digits to more than 70 million; brand activations (Wimbledon, Milan shows, Polo Cups, US Postal Service stamps) contributing to elevated brand desirability and NPS/luxury perception gains.
Capital Allocation and Balance Sheet
Returned over $300 million to shareholders in Q1 via dividend and repurchases; ended period with $1.9 billion in cash and short-term investments and $1.2 billion in total debt; net inventory decreased 3% (constant currency).
Raised Full‑Year Outlook and Improved Margin Guidance
Raised fiscal '27 revenue outlook to ~5%–6% (from 4%–5%); now expect full-year operating margin expansion of ~60–80 bps (up from 40–60 bps) and gross margin expansion of ~50–70 bps, reflecting Q1 overperformance.
Retail Expansion and Market Execution
Opened 22 new owned and partner stores globally (notable openings: LA Grove, Palo Alto, Istanbul, Sydney, Perth), expanded RL mobile app to Korea, and continued selective retail/partner executions to grow top-city ecosystems.

MX:RL Earnings History

Report Date
Fiscal Quarter
Forecast / EPS
Last Year's EPS
EPS YoY Change
Press Release
Nov 05, 2026
2027 (Q2)
72.08 / -
64.687―
2027 (Q1)
73.78 / 78.34
64.34521.75% (+14.00)
2026 (Q4)
43.47 / 47.79
38.74423.35% (+9.05)
2026 (Q3)
99.28 / 106.16
82.26729.05% (+23.89)
2026 (Q2)
58.88 / 64.69
43.35249.21% (+21.33)
2026 (Q1)
59.92 / 64.35
46.08339.63% (+18.26)
2025 (Q4)
34.85 / 38.74
29.18632.75% (+9.56)
2025 (Q3)
77.32 / 82.27
71.17315.59% (+11.09)
2025 (Q2)
41.24 / 43.35
35.84220.95% (+7.51)
2025 (Q1)
42.31 / 46.08
39.93915.38% (+6.14)
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed