Ralph Lauren recorded a 14 % increase on an annual basis of its entrances to $ 1.7 billion in the first quarter of the year 26, with a net income of $ 220 million and a rectified EPS growing 40 % to $ 3.77. Growth has been led by Asia, Europe and North America. Strong sales of DTC, margin expansion and new shop openings have increased performance. The company has raised its prospects for the entire year keeping a cautious global perspective.
The net profit for the quarter has reached $ 220 million on a reported base and $ 236 million on a rectified basis. The gross profit was $ 1.2 billion, with a gross margin of 72.3 percent, an increase of 180 basic points (BPS) compared to the previous year, helped by a higher average retail sale, to the favorable product and geographical mixture and to the lower cotton costs. Aur increased by 14 % throughout the direct consumer network (DTC), Ralph Lauren said in a press release.
Operating income amounted to $ 274 million (margin of 15.9 percent) on a reported base and $ 293 million (margin of 17 %) on a rectified basis. Operating margins have improved in all key regions, with Asia in the lead at 30.7 percent, Europe at 26.4 percent and North America at 20.7 percent.
The company also reported continuous progress on its brand construction initiatives. Ralph Lauren acquired 1.4 million new DTC customers in the first quarter and reached almost 66 million social media followers. The neighborhood characterized high -impact events such as the brand’s first fashion show in Shanghai, the activations of the Tokyo MLB Tour Tokyo series and a catwalk show in the spring of ’26 in Milan.
“What we represent – aspiration, optimism, individuality and authenticity – inspires people in every corner of the world,” he said Ralph Lauren, executive president and creative director in company. “And we are giving life to these values and inviting people to enter their dreams in new and powerful ways, from our first fashion presentation to Shanghai this April to our activations from the Tokyo series of the MLB Tour Tokyo and the presentation of our women in Paris.”
The company closed the quarter with $ 2.3 billion in cash and short -term investments and $ 1.6 billion in total debt. Inventory levels increased by 18 % to $ 1.2 billion. Ralph Lauren also regained about $ 250 million class A -class shares during the quarter.
“We provided strong results of the first quarter of geographies, channels and consumables,” he said River patrice, President e CHEF AndXecative orficer (CEO) AT Ralph Lauren. “While we continue to approach the current global operating environment with prudence, we are encouraged by the wide force in our brand and by our activities while we carry out our long -term strategic priorities, including the recruitment of new and younger consumers, strengthening our categories core and high potential and developing our ecosystems of the key city in each region.”
Looking to the future, the company has increased its FY26 guide. Now he expects the revenue to increase in the low -per half figures in constant currency, with the changes that should provide an advantage of 150 to 200 base points. The operating margin will be expanded from 40 to 60 BPS in constant currency, with further FX advantages.
For the second quarter (Q2), the revenues are expected to grow up of high single figures in constant currency, with an expansion of the operating margin of 120 to 160 BPS. The company anticipates a tax rate of about 19-20 % for the entire year and from 15 to 17 % for the second quarter. The capital expenditure for the tax year remains estimated from 4 to 5 % of the revenue.
Fiber2fashion news desk (sg)