Core Insights - Ralph Lauren Corporation (RL) reported strong second-quarter fiscal 2026 results, with both revenue and earnings exceeding expectations and showing year-over-year growth, highlighting the company's brand strength and strategic execution [1][2][8] Financial Performance - Adjusted earnings per share reached $3.79, surpassing the consensus estimate of $3.45, and increased by 49% from $2.54 in the same quarter last year [2] - Net revenues grew by 17% year over year to $2,010 million, exceeding the Zacks Consensus Estimate of $1,896 million; on a constant-currency basis, revenues increased by 14% [2] - Global direct-to-consumer comparable store sales rose by 13%, supported by positive retail performance across all regions and channels [3][8] Regional Performance - North America: Revenues increased by 13% year over year to $832 million, with retail channel comps rising by 13% [4] - Europe: Revenues grew by 22% year over year to $688 million, with retail channel comps up by 10% [5] - Asia: Revenues rose by 17% year over year to $446 million, with comps increasing by 16% [6][9] Margins and Costs - Adjusted gross profit margin expanded by 100 basis points year over year to 68%, driven by a favorable product mix and lower cotton costs [10] - Adjusted operating income was $283 million, with an adjusted operating margin of 14.1%, an increase of 130 basis points year over year [11] Financial Position - As of the end of the second quarter, the company had cash and short-term investments of $1.6 billion, total debt of $1.2 million, and total shareholders' equity of $2.5 billion [12] - Inventory increased by 12% year over year to $1.3 billion [12] - The company repurchased nearly $63 million of Class A Common Stock and returned about $420 million to shareholders through dividends and stock repurchases [13] Outlook - Ralph Lauren raised its full-year fiscal 2026 guidance, expecting revenue growth of 5-7% and margin expansion, reflecting strong brand momentum [15][16] - For the fiscal third quarter, the company anticipates mid-single-digit revenue growth on a constant currency basis, with operating margin expected to expand by approximately 60 to 80 basis points [18]