Financial Data and Key Metrics Changes - The company reported a total revenue growth of 11% in the first quarter, exceeding the high single-digit outlook, driven by strong performance in direct-to-consumer channels [21][22] - Adjusted gross margin expanded by 160 basis points to 72.1%, attributed to average unit retail (AUR) growth, favorable mix shift towards full-price and international businesses, and lower cotton costs [23][24] - Adjusted operating margin increased by 230 basis points to 16.6%, with operating profit rising by 29%, both ahead of guidance [25] Business Line Data and Key Metrics Changes - Core product sales, which represent over 70% of the business, grew in the mid-teens, driven by seasonal sweater polos and lightweight outerwear [12][13] - High potential categories, including women's apparel, outerwear, and handbags, saw strong double-digit growth, outpacing total company growth [13][14] - Direct-to-consumer (DTC) retail comps increased by 13%, with double-digit growth in both digital and brick-and-mortar stores [15][16] Market Data and Key Metrics Changes - Asia led performance with a 19% increase in revenue, followed by Europe at 10% and North America at 8% [22][23] - China experienced over 30% growth, driven by strong consumer response to brand-building initiatives [30][31] - North America maintained healthy trends with high single-digit growth, supported by strong DTC channels [17][26] Company Strategy and Development Direction - The company focuses on three long-term strategic pillars: elevating the lifestyle brand, driving core products, and winning in key cities with a consumer ecosystem [8][15] - Continued investment in technology, AI, and analytics to enhance consumer service and operational efficiency [7][18] - The company aims to expand its presence in key city ecosystems globally, leveraging brand desirability and diverse growth drivers [5][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong start to the fiscal year but remains cautious about the second half due to potential tariff-related pressures on consumer behavior [7][22] - The company anticipates low to mid-single-digit revenue growth for the full year, with a focus on the first half being stronger [33][34] - Management highlighted the importance of operational discipline and agility in navigating a dynamic macro environment [39] Other Important Information - The company ended the quarter with $2.3 billion in cash and short-term investments, and $1.6 billion in total debt [31] - Inventory increased by 18% year-over-year, reflecting strong global demand and strategic receipt pull-forwards to mitigate tariff impacts [32][90] - The company plans to exit 90 to 100 wholesale doors in fiscal 2026, with approximately half related to Hudson's Bay [26] Q&A Session Summary Question: What have been the largest drivers of upside and how sustainable are they? - Management noted the shift towards a more elevated full-price consumer base and the resilience of core consumers across regions as key drivers [44][45] Question: Can you walk us through your updated guidance assumptions? - The updated guidance reflects over-delivery in Q1 and a better outlook for Q2, with tariff impacts remaining broadly in line with previous guidance [54][56] Question: What is the outlook for the handbag business? - The handbag category is seen as a high potential growth area, with strong initial responses to recent product launches [60][62] Question: How much of the inventory increase was driven by tariffs? - The inventory increase was partially due to strategic pull-forwards related to tariffs, but overall inventory growth is expected to align with revenue growth [90][92] Question: Can you quantify the tariff impact on gross margin this year? - Tariffs are the biggest headwind for gross margin, but management is confident in offsetting this pressure through various growth strategies [97][99]

Financial Data and Key Metrics Changes - The company reported a total revenue growth of 11% in the first quarter, exceeding the high single-digit outlook, driven by strong performance in direct-to-consumer channels [21][22] - Adjusted gross margin expanded by 160 basis points to 72.1%, influenced by average unit retail (AUR) growth and a favorable mix shift towards full-price and international businesses [24][25] - Adjusted operating margin increased by 230 basis points to 16.6%, with operating profit rising by 29%, both ahead of guidance [26] Business Line Data and Key Metrics Changes - Core product sales, which represent over 70% of the business, grew in the mid-teens, driven by seasonal items and new product offerings [12][13] - High-potential categories, including women's apparel, outerwear, and handbags, saw strong double-digit growth, outpacing total company growth [13] - Direct-to-consumer (DTC) retail comps increased by 13%, with double-digit growth in both digital and brick-and-mortar stores [14][27] Market Data and Key Metrics Changes - Asia led performance with a 19% increase in revenue, followed by Europe at 10% and North America at 8% [22][23] - China experienced over 30% growth, significantly outpacing competitors, driven by brand-building initiatives and strong consumer response [16][30] - North America maintained healthy trends with high single-digit growth, supported by strong DTC channels and stabilization in wholesale [16][27] Company Strategy and Development Direction - The company focuses on three long-term strategic pillars: elevating the lifestyle brand, driving core products, and winning in key cities through a consumer ecosystem [7][19] - Continued investment in technology, AI, and analytics is emphasized to enhance consumer service and operational efficiency [6][18] - The company plans to expand its presence in key city ecosystems, leveraging brand desirability and diverse growth drivers [48][49] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about the second half of the year due to potential tariff-related pressures on consumer behavior, despite a strong start to the fiscal year [6][19] - The company expects low to mid-single-digit revenue growth for the full year, with a focus on maintaining operational discipline amid macroeconomic uncertainties [34][36] - Management highlighted the importance of brand desirability and value proposition in sustaining growth, particularly in a challenging economic environment [46][48] Other Important Information - The company ended the quarter with $2.3 billion in cash and short-term investments, and $1.6 billion in total debt, indicating a strong balance sheet [31] - Inventory increased by 18% year-over-year, primarily due to strategic pull-forwards to mitigate tariff impacts, with expectations for inventory levels to align with sales as the year progresses [31][91] - The company was recognized as one of America's Best Employers for Women by Forbes, reflecting its commitment to diversity and inclusion [18] Q&A Session Summary Question: What have been the largest drivers of upside and how sustainable are they? - Management noted the shift towards a more elevated full-price consumer base and the resilience of core consumers across regions as key drivers of upside, emphasizing the durability of these drivers [46][48] Question: Can you walk us through your updated guidance assumptions? - The updated guidance reflects over-delivery in Q1 and a positive outlook for Q2, with tariff impacts remaining broadly in line with previous expectations [56][57] Question: What is the outlook for the handbag business? - The handbag category is seen as a high-potential area, with strong initial responses to new product launches and a focus on building long-term capabilities [60][62] Question: How do you view the growth rates in Europe moving forward? - Management expects continued momentum in Europe but anticipates some deceleration in the second half due to timing shifts and macroeconomic pressures [71][72] Question: Can you comment on inventory levels and expectations for alignment with sales? - Inventory levels increased due to strategic pull-forwards related to tariffs, but management expects inventory growth to moderate and align with sales as the year progresses [89][91]

EXHIBIT 99.1 RALPH LAUREN REPORTS FIRST QUARTER FISCAL 2026 RESULTS EXCEEDING EXPECTATIONS AND RAISES FULL YEAR OUTLOOK NEW YORK -- (BUSINESS WIRE) -- August 7, 2025 -- Ralph Lauren Corporation (NYSE:RL), a global leader in the design, marketing, and distribution of luxury lifestyle products, today reported earnings per diluted share of $3.52, up 35% to prior year on a reported basis and $3.77, up 40% on an adjusted basis, excluding restructuring-related and other net charges, for the first quarter of Fisca ...

Core Viewpoint - Ralph Lauren Corporation (RL) is expected to report first-quarter fiscal 2026 results on August 7, with revenue estimates at $1.65 billion, indicating an 8.8% growth year-over-year, and earnings per share estimated at $3.45, suggesting a 27.8% increase from the previous year [1][2]. Group 1: Financial Performance Expectations - The consensus estimate for revenues is $1.65 billion, reflecting an 8.8% growth from the prior year's quarter [1]. - The earnings consensus is $3.45 per share, indicating a 27.8% increase from the year-ago actual [1]. - Management anticipates revenues to grow in the high-single digits on a constant-currency basis for the fiscal first quarter [6][11]. Group 2: Business Trends and Strategies - Ralph Lauren's performance is likely to benefit from a strong brand presence, diverse product portfolio, and expanding e-commerce capabilities [3]. - The company is focusing on innovation and integrating AI technology to enhance its market position [3]. - Investments in digital and omnichannel business are expected to support both top and bottom-line results [4][11]. Group 3: Market Conditions and Challenges - The company faces challenges from international exposure, particularly due to fluctuating foreign exchange rates and a strengthening U.S. dollar [7]. - Ongoing macroeconomic and geopolitical uncertainties, inflationary pressures, and supply-chain disruptions are impacting the operating landscape [8][9]. - Management noted no change in underlying business trends from the previous quarter into the current one [8]. Group 4: Valuation and Stock Performance - Ralph Lauren's stock is trading at a forward price-to-earnings ratio of 21.35X, higher than its median of 18.07X and the industry average of 10.63X [14]. - The stock has risen 28.4% in the past three months, contrasting with an 8.1% decline in the industry [15].

Market Overview - Recent market pullback due to new tariffs and a slowdown in job growth has shaken investor confidence, with July nonfarm payrolls rising by only 73,000, significantly below expectations [1] - June's job numbers were revised downward, indicating a weaker labor market than previously thought [1] - Renewed trade tensions have fueled expectations of a Federal Reserve rate cut and increased risk aversion, leading to sharp declines in major indices [1] Importance of Financial Health - Investors should not rely solely on stock price movements; understanding a company's fundamentals is crucial for informed decision-making in an unpredictable market [2] - Sales and earnings metrics can be misleading; the interest coverage ratio is a key indicator of a company's ability to meet financial obligations [3][4] Interest Coverage Ratio - The interest coverage ratio measures how effectively a company can pay interest on its debt, calculated as Earnings before Interest & Taxes (EBIT) divided by Interest Expense [5] - A higher interest coverage ratio indicates a greater ability to meet financial commitments, while a ratio below 1 suggests potential default risks [6][7] - Companies with strong interest coverage ratios include The Walt Disney Company, BJ's Wholesale Club, Ralph Lauren, and McKesson Corporation, all of which demonstrate solid debt-servicing capabilities [9][11] Investment Strategy - A favorable investment strategy includes selecting stocks with an interest coverage ratio above the industry average, a Zacks Rank of 1 or 2, and a VGM Score of A or B [8][10] - The selected companies have shown strong earnings surprises and are projected to grow sales and earnings in the coming year [9][11] Company Performance Highlights - **Walt Disney Company**: Zacks Rank 2, VGM Score B, with a trailing four-quarter earnings surprise of 16.4% and projected sales and EPS growth of 4% and 16.3% respectively [12] - **BJ's Wholesale Club**: Zacks Rank 2, VGM Score B, trailing four-quarter earnings surprise of 17.7%, with projected sales and EPS growth of 5.5% and 6.2% respectively [13] - **Ralph Lauren**: Zacks Rank 2, VGM Score B, trailing four-quarter earnings surprise of 9%, with projected sales and EPS growth of 3.8% and 11.8% respectively [14] - **McKesson Corporation**: Zacks Rank 2, VGM Score A, trailing four-quarter earnings surprise of 3.9%, with projected sales and EPS growth of 13.1% and 12.7% respectively [15]

Wall Street analysts expect Ralph Lauren (RL) to post quarterly earnings of $3.45 per share in its upcoming report, which indicates a year-over-year increase of 27.8%. Revenues are expected to be $1.65 billion, up 8.8% from the year-ago quarter.The consensus EPS estimate for the quarter has undergone an upward revision of 1.4% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Prior to a ...

Core Viewpoint - Investors are seeking growth stocks that can deliver above-average growth and exceptional returns, with Ralph Lauren identified as a strong candidate due to its favorable growth metrics and Zacks Rank [1][2]. Group 1: Earnings Growth - Ralph Lauren has a historical EPS growth rate of 51%, with projected EPS growth of 11.4% for the current year, significantly outperforming the industry average of -4.1% [5]. Group 2: Cash Flow Growth - The company exhibits a year-over-year cash flow growth of 10.2%, which is notably higher than the industry average of -5.4% [6]. - Over the past 3-5 years, Ralph Lauren's annualized cash flow growth rate has been 5.4%, compared to the industry average of 4.8% [7]. Group 3: Earnings Estimate Revisions - The current-year earnings estimates for Ralph Lauren have been revised upward, with the Zacks Consensus Estimate increasing by 0.5% over the past month [8]. Group 4: Overall Assessment - Ralph Lauren holds a Zacks Rank of 2 (Buy) and a Growth Score of B, indicating its potential as a solid choice for growth investors [9][10].

Group 1: Stock Performance - Ralph Lauren's stock closed at $289.49, reflecting a +1.13% change from the previous day's closing price, outperforming the S&P 500's daily loss of 0.01% [1] - The stock has increased by 6.89% over the past month, surpassing the Consumer Discretionary sector's gain of 6.61% and the S&P 500's gain of 5.37% [1] Group 2: Upcoming Earnings Disclosure - Ralph Lauren is set to report earnings on August 7, 2025, with projected earnings of $3.4 per share, indicating a year-over-year growth of 25.93% [2] - Revenue is expected to reach $1.64 billion, representing an 8.27% increase compared to the same quarter last year [2] Group 3: Fiscal Year Estimates - For the entire fiscal year, earnings are estimated at $13.63 per share and revenue at $7.31 billion, reflecting changes of +10.54% and +3.23% respectively from the previous year [3] - Recent changes to analyst estimates for Ralph Lauren may indicate shifting near-term business trends, with positive revisions seen as a favorable sign for business outlook [3] Group 4: Valuation Metrics - Ralph Lauren is currently trading at a Forward P/E ratio of 21, which is a premium compared to the industry average Forward P/E of 14.78 [6] - The company has a PEG ratio of 2.18, compared to the industry average PEG ratio of 2.08 [7] Group 5: Industry Ranking - The Textile - Apparel industry, which includes Ralph Lauren, has a Zacks Industry Rank of 212, placing it within the bottom 15% of over 250 industries [7] - The Zacks Rank system indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Cost Management Strategies - The company has a proven toolkit to manage cost headwinds, suggesting experience in navigating challenging economic conditions [1] - Diversified sourcing and strategic partnerships with suppliers are key strategies to manage costs throughout the supply chain [2] - The company possesses strong brand pricing power, allowing for selective pricing and promotional activities when needed [2] External Factors - Tariffs continue to evolve, creating uncertainty for the company [1] - Prior cost headwinds, such as increased cotton prices, have been successfully managed [2] Focus on Consumer - The company's primary focus is on engaging consumers through storytelling, products, and experiences [2]

Ralph Lauren CEO says demand for its signature clothing such as cable-knit sweaters remains strong, even as the fashion industry is buffeted by tariffs and an economic slowdown https://t.co/9FN8DGWKRY ...