Ralph Lauren Lifts Full-Year Outlook After Second-Quarter Revenue and Profit Beat Targets

Ralph Lauren raised its full-year guidance after second-quarter revenue and profit beat internal targets, the company said on its November 5, 2026 earnings call. The Motley Fool covered the call. The apparel maker is expanding margins by selling more goods at full price and building its luxury presence across global markets.

Ralph Lauren's Asia Growth and Full-Price Push

Asia has become the primary growth engine for Ralph Lauren, driven by direct-to-consumer sales that include company-owned stores and websites. Revenue in China rose by over 35% as management expanded its retail ecosystem in top cities. Second-quarter revenue in Asia increased 28%, reflecting broad-based growth across all key markets, and retail comps grew 24% with double-digit growth across every channel.

Ralph Lauren increased its Average Unit Retail, the average price paid per item, by 9% during the quarter. That pricing power helped boost adjusted gross margin to 70%. "AUR increased 9%, ahead of our plan, and on top of 12% growth last year," Chief Financial Officer Justin Picicci said. He said the increase was broad-based and reflected balanced contributions from product elevation, favorable channel and geographic mix, and selective pricing actions and lower promotional activity.

To protect its premium positioning, Ralph Lauren is pulling back from off-price channels, which sell excess stock at deep discounts. Management is intentionally exiting lower-tier department stores to focus on higher-margin, full-price sales. Picicci said the company still expects solid underlying growth to be partly offset by accelerated strategic actions to improve quality of sales and exit lower-tier doors, notably in the back half of the year.

Marketing investments reached 8.6% of sales as Ralph Lauren funded major campaign activations. "No, 8.6 is not the ceiling," President and Chief Executive Officer Patrice Louvet said. "As long as we get exciting returns, we will continue to lean in our diversified portfolio of activation while, of course, delivering attractive value and also expanding our operating margin."

Ralph Lauren's Record Revenue Year

According to akta.pro company records, Ralph Lauren reported record full-year revenue of $8.1 billion for FY2026, up 14.6% from about $7.1 billion in FY2025. Fourth-quarter FY2026 revenue was $2 billion, up 17% year-over-year. Full-year net income was $941.1 million, up from $742.9 million in the prior year, and gross margin expanded to 69.9% with an operating margin of 14.5%.

Ralph Lauren's China Momentum Before the Call

Ralph Lauren debuted at the 9th China International Import Expo in Shanghai, showcasing a livestreamed "see now, buy now" format, English.news.cn reported in November 2026. The brand plans to open more stores in six city clusters. Fashionnetwork reported in November 2026 that Coach and Ralph Lauren saw China sales jump over 30% in the quarter ending September as younger Chinese shoppers shifted toward value and practicality. Bloomberg reported in November 2026 that the two brands are gaining appeal in China as luxury labels including Gucci and Balenciaga lose favor.

Ralph Lauren's Plans for More China Stores

Ralph Lauren plans to open more stores across six city clusters in China, a step the company set out at its China International Import Expo debut.