Ralph Lauren(RL) - 2026 Q3 - Quarterly Results

Financial Performance - Earnings per diluted share for Q3 Fiscal 2026 were $5.82, up 25% year-over-year on a reported basis, and $6.22, up 29% on an adjusted basis [2]. - Revenue for Q3 Fiscal 2026 increased 12% to $2.4 billion on a reported basis, with a 10% increase in constant currency [5][10]. - Net income for the three months ended December 27, 2025, was $361.6 million, representing a 21.6% increase from $297.4 million in the same period last year [36]. - Basic net income per share for the three months ended December 27, 2025, was $5.91, compared to $4.76 for the same period in 2024, reflecting a 24.1% increase [36]. - Total net revenues for the three months ended December 27, 2025, were $2,358.1 million, a decrease of $47.9 million compared to the same period in 2024 [49]. - Operating income for the three months ended December 27, 2025, was reported at $471.3 million, compared to $389.7 million for the same period in 2024, reflecting an operating margin of 19.6% [50]. - Total operating income for the nine months ended December 27, 2025, was $990.6 million, compared to $777.1 million in the same period of 2024, reflecting a growth of 27.4% [40]. Revenue Growth - Global direct-to-consumer comparable store sales grew high-single-digits, with North America revenue increasing 8% to $1.1 billion [10][17]. - The company expects full-year Fiscal 2026 revenues to increase high-single to low-double digits on a constant currency basis, up from a prior outlook of 5% to 7% [22]. - North America segment net revenues increased by 9.4% to $2,566.9 million for the nine months ended December 27, 2025, compared to $2,345.4 million in 2024 [43]. - Asia segment net revenues grew by 20.5% to $1,539.9 million for the nine months ended December 27, 2025, compared to $1,277.8 million in the previous year [43]. - Digital commerce sales in North America increased by 12% for the nine months ended December 27, 2025, while brick-and-mortar sales rose by 9% [42]. Margins and Profitability - Adjusted gross margin for Q3 Fiscal 2026 was 69.9%, up 150 basis points from the prior year, driven by high-teens AUR growth [13]. - Gross profit for the three months ended December 27, 2025, was $1,681.7 million, up from $1,466.1 million in the same period last year, resulting in a gross profit margin of 69.9% [49]. - Adjusted operating income for the three months ended December 27, 2025, was $503.1 million, reflecting an adjusted operating margin of 20.9% [50]. Cash and Investments - The company ended Q3 Fiscal 2026 with $2.3 billion in cash and short-term investments, compared to $2.1 billion at the end of Q3 Fiscal 2025 [19]. - Cash and cash equivalents increased to $2,031.9 million as of December 27, 2025, from $1,922.5 million as of March 29, 2025, reflecting a growth of 5.7% [34]. - Approximately $500 million was returned to shareholders through dividends and stock repurchases in Fiscal Year-to-Date [5]. Store Expansion - The company opened 32 new stores in key cities during Q3, including locations in Chengdu, Sydney, and New Delhi [11]. - The total number of directly operated stores increased to 600 globally as of December 27, 2025, compared to 579 in the previous year [47]. Shareholder Returns - The company declared dividends of $0.9125 per share for the three months ended December 27, 2025, compared to $0.825 per share for the same period in 2024, an increase of 10.6% [36]. - The company repurchased common stock totaling $473.4 million during the nine months ended December 27, 2025, compared to $404.6 million in the same period of 2024 [38]. Restructuring and Charges - The company reported a restructuring charge of $31.8 million for the three months ended December 27, 2025, compared to $12.2 million in the same period last year [36]. - The adjustments during the fiscal periods include charges related to the Company's restructuring activities and other non-recurring events, with income tax benefits adjusted accordingly [57]. - The Fiscal 2026 full year and fourth quarter guidance excludes potential restructuring-related and other charges that may occur in future periods [58]. - A full reconciliation of non-U.S. GAAP financial measures to U.S. GAAP cannot be provided due to the uncertain nature of potential future charges [58].