Ralph Lauren(US:RL) Benzinga·2026-02-05 17:45Core Insights - The company raised its full-year revenue growth outlook, supported by expanding margins and favorable pricing and product mix [1] - The company reported strong third-quarter financial results, with adjusted earnings per share of $6.22, surpassing analyst expectations [2] - Revenue growth was driven by demand across various geographies, with notable increases in North America, Europe, and Asia [3] Financial Performance - Third-quarter sales reached $2.406 billion, exceeding the Street's estimate of $2.313 billion, with a reported revenue increase of 12% and 10% in constant currency [2] - North America revenue increased 8% to $1.1 billion, Europe revenue rose 12% to $676 million, and Asia revenue surged 22% to $620 million [3] - Gross profit for the third quarter was $1.7 billion, with a gross margin of 69.9%, reflecting a 150 basis point improvement year-over-year [3] - Adjusted operating income was $503 million, with an operating margin of 20.9%, up 220 basis points from the previous year [4] Future Outlook - For fiscal 2026, the company expects revenue growth in the high single to low double digits on a constant currency basis, an increase from the previous outlook of 5% to 7% [5] - The company anticipates that foreign currency will contribute approximately 200 to 250 basis points to revenue growth in fiscal 2026 [5] - The operating margin for fiscal 2026 is expected to expand by approximately 100 to 140 basis points in constant currency, up from the previous estimate of 60 to 80 basis points [5] - For the fourth quarter, the company expects revenues to increase by mid-single digits on a constant currency basis, with an anticipated contraction in operating margin due to increased U.S. tariffs and higher marketing expenses [6]