The Tamesis
Ralph Lauren said Thursday that revenue in the fourth quarter of 2026 rose 12% year-on-year to $2 billion on a constant currency basis. Full-year revenue also increased 12% to $8.1 billion, surpassing the $8 billion mark for the first time in the company’s history.
“As we look back on the past year, our teams around the world executed with excellence and agility to deliver a strong performance in the first year of our next great chapter: Drive Plan,” CEO Patrice Louvet said on the earnings call. Both results topped company and analyst expectations, although the company raised full-year guidance last quarter.
Louvet attributes much of this growth to the brand’s emotional resonance with consumers. “The passion and unique loyalty of our consumers is a testament to the power of our iconic brands and their ability to truly connect across generations and cultures,” Louvet said. “These deep connections are translating into healthy, continued, sustainable growth and value creation across our business.” He thanked consumers for being more engaged than ever: “From your interpretations of Ralph Lauren Christmas, classic quarter zips or Team USA gear in your TikTok posts, to all of you patiently waiting for a cup of Ralph’s coffee.”
In the fourth quarter, direct-to-consumer (DTC) sales grew 17% and wholesale grew approximately 13%. By region, revenue in North America increased by 8% to US$763 million, revenue in Europe increased by 6% to US$620 million, and revenue in Asia increased by 28% to US$564 million, with China increasing by 51%. “If you look at our business penetration in China and the runway we still have, the China opportunity remains a significant opportunity for this company in the medium to long term,” the CEO told investors.
Full-year DTC sales increased by 13%, and wholesale volume increased by approximately 9%. By region, revenue in North America increased 9% to $3.3 billion, Europe increased 9% to $2.5 billion, and Asia increased 22% to $2.1 billion. “Our core consumers continue to remain resilient, across all three regions, and we are very encouraged by the underlying growth rates in EMEA [Europe, the Middle East, and Africa] as well as North America and Asia Pacific,” Louvet added.
The company expects revenue to grow by approximately mid-to-high single digits in the next quarter compared to last year. “Similar to last year, if consumers are stronger than expected, we are well-positioned to capture additional demand, driven by our proven supply chain agility and the strength and high penetration of our core and replenishment products that continue to resonate across markets,” Chief Financial Officer Justin Picicci said. The guidance does not currently assume any potential impact from tariff refunds.
Looking ahead to full-year 2027, Ralph Lauren expects constant currency revenue to grow by approximately mid-single digits year over year, or approximately 4-5%. “As we enter fiscal 2027, we will continue to leverage our unrivaled range of lifestyle products to connect with consumers around the world and drive the resiliency of our business,” Louvet said.
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