Ralph Lauren Corporation

Ralph Lauren Corporation sells clothing, footwear, accessories, home products and other premium lifestyle products through its own stores and websites, wholesale customers and licensing partners. Its three main reporting regions are North America, Europe and Asia. Its Class A shares trade on the New York Stock Exchange as RL.

Fiscal 2027 ends April 3, 2027 and has 53 weeks. The second quarter ended September 26, 2026 and had 13 weeks, matching the length of the year-earlier quarter ended September 27, 2025.

Quarterly earnings and regional demand

Current reported gross profit includes an $82.3 million tariff refund. Adjusted results remove that benefit, a related $33.2 million donation expense, transformation and restructuring costs, and certain other items. Adjusted operating margin was 15.7% at reported exchange rates and 15.5% at constant rates, versus 14.1% previously. Constant-currency revenue growth was 9.6%, ahead of the 5%–6% original August expectation.

Asia revenue rose to $571.3 million from $445.6 million. Comparable retail sales rose 24%, versus 6% in North America and a 1% decline in Europe. Europe's physical-store comparison fell 4%, with 9% growth online; its total revenue still rose to $696.0 million from $688.3 million. North American wholesale growth of 8% included about four percentage points from earlier second-half shipments.

How the annual outlook changed

The original May outlook called for 4%–5% constant-currency revenue growth on a comparable 52-week basis, with 0.4–0.6 percentage point of adjusted operating-margin expansion. August raised those ranges to 5%–6% and 0.6–0.8 point. November raised them again to 6%–7% and 0.8–1 point.

The additional fiscal week is expected to add about one percentage point of annual revenue growth separately. Capital spending is still expected to be 4%–5% of sales. The December-quarter revenue-growth target is 3%–4% excluding currency, including about one point of drag from shipment timing and off-price reductions. Adjusted operating margin is expected to expand 0.5–0.7 percentage point at constant exchange rates that quarter.

Cash, debt and lease commitments

Operating cash flow for the six months through September was $618.2 million, versus $229.3 million. Inventory and tax-payment timing helped. Capital spending fell to $114.2 million from $281.1 million; the earlier period included strategic real-estate purchases.

Cash and short-term investments totaled $1.822 billion, down from $2.065 billion at March 28. They include $1.426 billion of cash and equivalents and $395.7 million of short-term investments. Carrying debt was $1.240 billion, giving the company's net-cash-and-investments measure of $581.8 million, versus $826.1 million in March.

That measure excludes leases. Operating lease liabilities totaled $1.540 billion, and finance lease liabilities were $222.6 million. Supplier-finance obligations of $243.2 million, versus $172.1 million in March, are included in accounts payable.

Note principal consists of $750 million due in June 2030 and $500 million due in June 2032. No debt was issued or repaid during the first half. The $750 million revolver and commercial-paper program share one capacity limit; letters of credit reduced unused capacity to $740.6 million at September 26. There were no outstanding borrowings under either program. The revolver runs through June 2028, and the company reported no default.

Shareholder returns and leadership

Ralph Lauren completed its planned $500 million of fiscal 2027 program repurchases in the first half, including $250 million in the second quarter. The remaining repurchase authorization was $852 million. A further $126.6 million of shares was withheld for employee-award taxes, bringing combined cash repurchases and withholding to $626.6 million. Cash dividends paid were $114.4 million.

Under the change announced in September, Halide Alagoz is due to become chief operating and product officer on November 29, following chief operating officer Robert Ranftl's retirement. Patrice Louvet remains president and chief executive. The Club Monaco consideration adjustments in the results relate to the business sold in fiscal 2022.