Ralph Lauren lifts FY26 outlook following strong holiday sales growth

Core Insights - The company reported a 12% year-over-year increase in net revenue for Q3, reaching $2.4 billion, with foreign currency movements contributing approximately 220 basis points to this growth [1] - Revenue growth on a constant currency basis was 10%, exceeding prior expectations of mid-single-digit growth [1] - The company anticipates full-year fiscal 2026 revenues to grow by high-single to low-double digits on a constant currency basis, an increase from earlier guidance of 5-7% [5] Revenue Breakdown - North America revenue increased by 8% to $1.1 billion, driven by a 7% rise in comparable store sales and an 11% increase in wholesale revenues [1] - In Europe, revenue rose 12% to $676 million on a reported basis, with a 4% increase in constant currency; digital commerce grew by 5%, while physical store sales declined by 1% [2] - Asia experienced a significant 22% revenue increase to $620 million, with comparable store sales growing by 20% [2] Profitability Metrics - The company's gross profit reached $1.7 billion, resulting in a gross margin of 69.9%, which is an increase of 150 basis points from the previous year [2] - Operating income rose to $471.3 million from $389.7 million [3] - Net income for the third quarter was $362 million, translating to $5.82 per diluted share, compared to $297 million or $4.66 per share in the previous year [3] Strategic Outlook - The CEO highlighted strong growth across geographies and consumer segments, enabling investments in long-term strategic priorities and brand elevation [4] - The company's strategy, termed "Next Great Chapter: Drive," is supported by multiple growth drivers and aims to deliver sustainable growth and long-term value creation [4]