Ralph Lauren Raises Full-Year Outlook After Revenue Jumps 13% in First Quarter
The luxury apparel maker exceeded expectations with double-digit growth across Asia and North America, driven by brand elevation efforts and new customer acquisition.
Strong Quarter Prompts Guidance Raise
Ralph Lauren Corporation reported first-quarter fiscal 2027 results that exceeded expectations, with revenues increasing 13% on a constant currency basis, driven by double-digit growth in both Asia and North America and mid-single-digit growth in Europe (earnings call, 2026-08-06).
The performance prompted the $24 billion luxury apparel company to raise its full-year outlook. "With first quarter revenues and gross and operating margins ahead of the expectations we outlined in May, we have confidence in raising our full year outlook to reflect our first quarter over delivery," said CEO Patrice Louvet during the August 6 earnings call.
Balanced Growth Across Channels
The company's results reflected balanced performance across its business model, with global direct-to-consumer comparable sales up 12% and wholesale up 13% in constant currency (earnings call, 2026-08-06). The company achieved these results "while continuing to improve our quality of sales with increased full price selling," Louvet noted.
Ralph Lauren added 1.5 million new customers to its DTC businesses during the quarter, led by Ralph Lauren stores and digital commerce sites (earnings call, 2026-08-06). The company's core products, which represent more than 70% of its business, grew mid-teens during the period.
Regional Performance
Asia led regional growth with sales up 25%, driven by all key markets. China remained particularly strong, with sales increasing more than 40% as the company continues expanding across its top six city clusters (earnings call, 2026-08-06).
North America, the company's largest region, delivered 13% growth with contributions from both retail and wholesale channels. Europe posted mid-single-digit growth despite what management characterized as a "dynamic" operating environment in the region.
High-Potential Categories Accelerate
High-potential categories including women's apparel, outerwear, and handbags "continued to be accelerators for our business," with these categories collectively increasing more than 20% for the quarter, outpacing total company growth (earnings call, 2026-08-06).
The company opened 22 new owned and partner stores globally during the quarter, including locations in Los Angeles, Palo Alto, Istanbul, Sydney, and Perth. Ralph Lauren also expanded its mobile app to Korea, its first market outside North America, "with strong early performance that exceeded our expectations" (earnings call, 2026-08-06).
Brand Elevation Strategy
The quarter featured numerous brand activations, including Ralph Lauren's designation as the first designer invited by the U.S. Postal Service to create a commemorative stamp collection celebrating America's 250th anniversary. The company also hosted polo cups in Beijing and Sydney and launched year-long celebrations marking 50 years in Japan.
CFO Justin Picicci noted that results "underscore our disciplined operating approach and the quality of execution by our teams around the world" amid a dynamic environment (earnings call, 2026-08-06).
According to MarginX data, the company is expected to report second-quarter fiscal 2027 results on November 5, 2026. Recent insider activity shows award grants to directors Valerie Jarrett, Frank Bennack Jr., and Michael George of 458 shares each.
This article was generated by MarginX from the earnings call on 2026-08-06. It is not investment advice.