The Tamesis
On a constant currency basis, Ralph Lauren’s revenue in the third quarter of 2026 increased 10% year-on-year to $2.4 billion, once again exceeding internal expectations. The brand continues its double-digit growth in fiscal 2026, following revenue growth of 11% and 14% in the first and second quarters, respectively.
“In our most important quarter of the year, we exceeded our commitments on both top and bottom lines, delivering broad performance across regions, channels and product categories,” CEO Patrice Louvet said on an earnings call Thursday. “Full-price sales this holiday season were better than we expected. [season]because our brand experiences and products resonate around the world. This strong demand allows us to continue driving our long-term altitude journey to improve sales quality and gross margin in every region. “
The CEO added that strong sales helped offset the impact of high U.S. tariffs as the brand began moving more products at higher prices. The company expects tariffs to continue to impact gross margins in the first half of the next fiscal year.
The results follow the Lyst Q4 Index, which saw Ralph Lauren move up five spots to fourth in the brand rankings. This reflects Ralph Lauren’s continued success in its Altitude business, which is now guided by the company’s “Next Great Chapter: Driven” strategy, which was launched in September 2025.
By channel, direct-to-consumer (DTC) sales grew in the high single digits, while wholesale grew in the double digits. By region, Asia led growth, with revenue up 22% year-on-year to $620 million; China revenue increased by more than 30%; Japan’s revenue increased by double digits. Europe grew 4% to $676 million, led by Germany, the United Kingdom, Italy and Spain. North American DTC and wholesale revenue increased 8% to $1.1 billion, higher than the company’s expectations.
Louvet said the brand’s DTC business attracted a record 2.1 million new consumers in the third quarter, most notably young consumers, women and Victorian consumers. He is confident in Ralph Lauren’s ability to sustain this momentum by further building the brand’s world. Loewy compares Ralph to a movie director: “Think about [more] Martin Scorsese or Steven Spielberg than traditional designers. Ralph and his talented design team invite people into the world of the movie. “
Still, things weren’t all smooth sailing. “While consumers have proven to be more resilient this year than we initially expected, we remain cautious about the operating environment in North America, in part due to further consolidation across the wholesale channel, including recent developments at Saks,” Chief Financial Officer Justin Picicci said, highlighting the potential impact of Saks Global’s bankruptcy. “Our net exposure to Saks this year is small, reflecting our disciplined and active management of the account,” he said, adding that the company will continue to strategically shift its focus to full-price DTC.
Looking ahead to the fourth quarter, Ralph Lauren expects revenue to grow by about mid-single digits. The company also raised its full-year guidance and now expects revenue to grow by high single digits to low double digits on a constant currency basis, up from its previous guidance of 5% to 7%.
“Ralph and I are proud of the progress and execution our team has achieved through the first three quarters of this fiscal year, including the important holiday season,” Louve said. “Even as we continue to navigate an uncertain macro and geopolitical environment, we remain focused on the things we can control and the future of Ralph Lauren: creating value; advancing our core business while accelerating our high-potential categories; meaningful geographic white spaces; and the ability to execute with creativity, agility and operational discipline.”
Ralph Lauren is currently preparing for the Winter Olympics in Milan and Cortina d’Ampezzo, where it is the official equipment provider for Team USA. Ralph Lauren unveiled Team USA uniforms ahead of the third quarter, which begins on Friday. Louvet described the opening as the brand’s “biggest fashion show.”
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