Q3 2026 Ralph Lauren Corp Earnings Call Transcript
Key Points
- Ralph Lauren Corp (RL) delivered strong third quarter results, exceeding commitments on both the top and bottom line with broad-based performance across geographies, channels, and product categories.
- The company achieved double-digit growth in wholesale and high single-digit growth in core products, driven by strong demand and brand desirability.
- Ralph Lauren Corp (RL) added 2.1 million new consumers to its direct-to-consumer businesses, with strong momentum across younger generations, women, and high-value consumers.
- The company reported a significant increase in social media followers, reaching over 68 million, led by platforms like Instagram and TikTok.
- Ralph Lauren Corp (RL) raised its fiscal 2026 outlook, reflecting strong execution and a modestly improved outlook for the remainder of the year, with expectations for high single to low double-digit revenue growth.
- The company faces higher U.S. tariffs, which are impacting cost of goods sold and are expected to be a meaningful gross margin headwind through the first half of the next fiscal year.
- Ralph Lauren Corp (RL) anticipates a decline in fourth quarter North America wholesale revenues due to a planned strategic reduction in off-price sales and timing shifts.
- The company expects a decline in fourth quarter gross and operating margins due to higher tariffs, timing of marketing campaigns, and seasonal transitions.
- Despite strong performance, Ralph Lauren Corp (RL) remains cautious about the North American operating environment due to broader wholesale channel consolidation.
- The company is experiencing pressure on Europe segment margins due to increased marketing investments, despite pulling back on promotions in outlets.
Ladies and gentlemen, thank you for standing by. Welcome to the Ralph Lauren third quarter fiscal year 2026 earnings call. (Operator Instructions) As a reminder, this conference is being recorded.
I would now like to turn the conference over to our host, Ms. Corinna Van Ghinst. Please go ahead.
Good morning, and thank you for joining Ralph Lauren's third quarter fiscal 2026 conference call. With me today are Patrice Louvet, the company's President and Chief Executive Officer; and Justin Picicci, Chief Financial Officer. After prepared remarks, we will open up the call for your questions, which we ask that you limit to one per caller.
During today's call, our financial performance will be discussed on a constant currency adjusted basis. Our reported results, including foreign currency can be found in this morning's press release. We will also be making some forward-looking statements within the meaning of the federal securities laws, including our financial outlook.
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