Ralph Lauren raises its outlook again as Asia sales jump 28% and China grows over 35%

Ralph Lauren reported second-quarter results for fiscal 2027 on Thursday, 5 November, and raised its full-year outlook “once again”, according to the company’s statement.

The quarter (to 26 September)

• Revenue rose 9% to $2.2 billion (+10% in constant currency), above expectations, with every region growing.
• Asia revenue jumped 28% to $571 million; China grew more than 35%. North America rose 6% and Europe 1% (3% in constant currency).
• Global direct-to-consumer comparable store sales rose 10%, and average unit retail — roughly, the average price paid per item — rose 9%, reflecting more full-price selling.
• Adjusted earnings per share rose 22% to $4.64. The reported gross margin of 74.2% was lifted by refunds of US tariffs previously paid under the IEEPA law; on an adjusted basis it was 70.5%, up 2.5 points.

New outlook

The company now expects constant-currency revenue growth of around 6–7% for fiscal 2027, up from 5–6%, and operating-margin expansion of about 0.8–1 point. For the third quarter it guides to growth of about 3–4%.

Brand activity

Ralph Lauren said it added 1.7 million new direct-to-consumer customers in the quarter and opened 22 stores, including in Boston, London’s Sloane Square, St Tropez and Beijing. CEO Patrice Louvet said the results allowed the company “to raise our Fiscal 2027 outlook once again”.

Wealthier US shoppers have kept spending on “accessible” luxury brands such as Ralph Lauren and Coach even as lower-income consumers pull back, Reuters noted.