Ralph Lauren sees revenue rise 14% in FY27 Q1, beating analysts’ expectations

Ralph Lauren sees revenue rise 14% in FY27 Q1, beating analysts’ expectations
Ralph Lauren’s revenue increased by 14% on a reported basis to $1.96 billion in the first quarter of the 2027 financial year- 13% in constant currency terms. Growth was led by Asia and North America, beating analysts’ expectationsOn Thursday, Ralph Lauren reported a 13% increase in its North America revenue in the first quarter, totalling $740 million on a reported basis. The quarter saw its Asia revenue increase by 24% to $589 million on a reported basis and its Europe revenue rise by 7% to $594 million on a reported basis. The fashion and lifestyle brand attributed its sales growth to strong demand from affluent, young shoppers for products ranging from summer staples such as shorts to lightweight outerwear, Reuters reported.

Gross profit totalled $1.44 billion in the first quarter of the 2027 fiscal year with a gross margin of 73.7%, up from $1.24 billion a year prior. Operating expenses rose by 14% year on year to total $1.1 billion in the first quarter and operating income totalled $342 million with an operating margin of 17.5% on a reported basis.

“We are off to a strong start in the second year of our ‘Next Great Chapter: Drive’ plan, with broad-based performance across geographies, channels, and consumer segments in the first quarter- exceeding our expectations and driving an increase in our full year fiscal 2027 outlook,” said the business’ president and CEO Patrice Louvet in a press release. “Our iconic brand is resonating around the world, and we continue to invest behind the long-term strategic priorities that will drive further sustainable growth and value creation into the future- from recruiting new and younger consumers to strengthening our core and high-potential categories and developing our key city ecosystems in every region.”

The business reported low double-digit growth in its global direct to consumer comparable store sales, driven by both online and brick-and-mortar sales channels. Ralph Lauren’s wholesale sales accelerated to mid-teens growth driven by strong demand. After returning over $300 million to its shareholders through its dividend and repurchase of Class A common stock in the first quarter, Ralph Lauren raised its constant currency, revenue, and adjusted operating margin expansion outlook for the 2027 financial year as a whole.

“As we celebrate America’s 250th anniversary and look ahead to important milestones for our company over the coming year, I’m reminded of what has inspired us for nearly 60 years- optimism and aspiration, authenticity and the belief that we all can step into our dreams,” said eponymous executive chairman and chief creative officer Ralph Lauren. “These are the values that our teams around the world embrace every day, that will endure as we continue to grow and evolve.”