Ralph Lauren Posts 14% Revenue Growth as Full-Price Strategy Pays Off

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8.22.2026

Quick Facts

Ralph Lauren reported Q1 FY2026 revenue of $1.72 billion, up 13.7% year-over-year, with adjusted EPS rising 40% to $3.77.
Direct-to-consumer comparable store sales grew 13%, with average unit retail up 15% as the company cut promotions and leaned into full-price selling.
Asia revenue surged 21% to $474 million, with China sales up more than 30%; Europe grew 16% to $555 million.

Ralph Lauren is growing faster than most of its luxury peers, and doing it by selling fewer units at higher prices. The company reported first-quarter fiscal 2026 revenue of $1.72 billion, up 13.7% from the same period a year ago, for the quarter ended June 28, 2025.

Adjusted earnings per diluted share came in at $3.77, a 40% increase year-over-year. Operating profit grew 31% to $273.6 million. The company ended the quarter with $2.3 billion in cash and short-term investments against $1.6 billion in total debt.

AUR Growth at the Center

Average unit retail across Ralph Lauren’s direct-to-consumer network rose 15% in the quarter. The company has grown AUR every quarter for the past eight years by cutting promotions, selectively raising prices, and shifting its product mix toward higher-ticket categories.

CFO Justin Picicci told analysts the company has been on a multi-year journey to attract less price-sensitive consumers, particularly in full-price channels. He said the company is assessing additional pricing actions for fall 2025 and spring 2026 to offset potential tariff impacts.

Women’s apparel, outerwear, and handbags each grew more than 20% in constant currency last quarter. DTC now accounts for approximately 65% of total revenue.

Geographic Strength

Asia was the standout region. Revenue there jumped 21% to $474 million, with China sales up more than 30%. That follows a prior quarter in which China grew more than 40%, after posting more than 50% growth the quarter before that.

Europe also held strong, with revenue rising 16% to $555 million. For the full fiscal year, both regions led performance, with Europe up 11% and Asia up 9% on a reported basis.

The Elevation Strategy

CEO Patrice Louvet attributed the results to brand investment, geographic expansion, and a disciplined approach to distribution. “Despite macro headwinds, we remain well positioned and we are on offense,” Louvet said in the company’s earnings release.

Michael Prendergast, managing director at Alvarez and Marsal, told Retail Brew that the company’s long-term elevation strategy is now delivering results. “Ralph is hitting its stride right now with newness, with elevation, with a cleaned-up distribution pattern, with new categories coming online that the customer is responding to,” he said.

Ralph Lauren’s revenue has climbed steadily from $6.2 billion in fiscal 2022 to an estimated $7.8 billion in fiscal 2026. Gross margin is approaching 70%, and net income rose nearly 27% in fiscal 2026, showing that the elevation strategy is expanding earnings faster than revenue.

What Comes Next

The company’s current growth plan, called “Next Great Chapter: Drive,” focuses on energizing the brand, growing core product categories, and building what it calls key city ecosystems in 30 cities worldwide. Those ecosystems are anchored by stores and digital commerce channels.

Management expects AUR to continue growing in the high single digits in the current quarter. The company is also recruiting younger consumers as part of its long-term plan to expand its customer base without reverting to discounting.