Ralph Lauren beats holiday forecasts and raises full-year outlook

Core Viewpoint - Ralph Lauren Corporation reported stronger holiday-quarter earnings and upgraded its annual outlook due to sales growth and margin expansion across multiple regions [1] Financial Performance - For the quarter ended December 27, 2025, revenue increased by 12% year-on-year to $2.40 billion, with a 10% rise in constant currency [1] - Net income reached $362 million, while adjusted net income was $387 million, compared to $297 million and $308 million a year earlier [2] - Gross profit totaled $1.68 billion, with gross margin widening by 150 basis points to 69.9% [2] - Operating income was reported at $471 million and adjusted at $503 million [2] Regional Performance - North America revenue advanced 8% to $1.07 billion, with retail comparable sales up 7% and wholesale up 11% [3] - Europe reported growth of 12% to $676.5 million, or 4% in constant currency, while Asia surged 22% to $620.3 million with 20% comparable-store growth [4] - Asia generated $197.3 million with a 31.8% margin, North America recorded $292.7 million at 27.1%, and Europe produced $179 million with a margin slip of 150 basis points to 26.4% [4] Direct-to-Consumer and Store Expansion - Global direct-to-consumer comparable sales rose at a high-single-digit rate, while wholesale revenue increased by double digits [3] - The quarter saw the opening of 32 new owned and partnered stores in various cities and the addition of 2.1 million direct-to-consumer customers [5] Year-to-Date Performance - For the nine months ending December 27, 2025, net revenue reached $6.13 billion, up from $5.38 billion in the same period last year [6] - Net income climbed to $789.5 million from $613.9 million, with gross profit rising to $4.29 billion from $3.68 billion [6] - Operating income increased to $990.6 million from $777.1 million [6] Future Outlook - Ralph Lauren expects high-single to low-double-digit constant-currency revenue growth and operating-margin expansion of 100–140 basis points for the year [7]