RL Q3 2026 Earnings
Reported Feb 5, 2026 at 8:11 AM ET · SEC Source
Q3 26 EPS
$6.22
BEAT +7.10%
Est. $5.81
Q3 26 Revenue
$2.41B
BEAT +4.16%
Est. $2.31B
vs S&P Since Q3 26
+5.4%
BEATING MARKET
RL +9.7% vs S&P +4.3%
Market Reaction
Did RL Beat Earnings? Q3 2026 Results
Ralph Lauren capped its fiscal third quarter of 2026 with a decisive beat on both the top and bottom lines, reporting earnings per share of $6.22 against a consensus estimate of $5.81, a 7.10% beat, while revenue of $2.41 billion exceeded the $2.31 b… Read more Ralph Lauren capped its fiscal third quarter of 2026 with a decisive beat on both the top and bottom lines, reporting earnings per share of $6.22 against a consensus estimate of $5.81, a 7.10% beat, while revenue of $2.41 billion exceeded the $2.31 billion estimate by 4.16% and climbed 12.3% year over year. The standout driver behind the quarter was a sharp acceleration in average unit retail, which rose 18% across the direct-to-consumer network, reflecting disciplined brand elevation and stronger-than-expected full-price selling with minimal promotional activity. Asia was particularly notable, with China revenues surging more than 30%, underscoring the brand's growing global momentum. Adjusted gross margin expanded 150 basis points to 69.9%, and adjusted operating margin reached 20.9%, up 220 basis points year over year. Buoyed by the results, management raised full-year fiscal 2026 guidance, now targeting high-single to low-double digit constant currency revenue growth, up from a prior 5% to 7% range, though a modest Q4 operating margin contraction is expected due to tariff headwinds and stepped-up marketing investment. Ralph Lauren shares hit an all-time high of $380.34 around the filing date.
Key Takeaways
- • Average unit retail (AUR) increased 18% across DTC network, above expectations
- • Strong full-price selling trends with lower-than-planned promotions
- • Core business up low double-digits, led by sweaters and knit tops
- • High-potential categories (Women's Apparel, Outerwear, Handbags) up high-teens
- • China revenues up more than 30% on strong brand momentum
- • Asia digital commerce comparable store sales up 35%
- • Global DTC comparable store sales grew high-single digits
- • Global wholesale sales increased double-digits
- • 2.1 million new consumers acquired in direct-to-consumer businesses
- • Gross margin expansion of 150 basis points driven by AUR growth, favorable product mix, and lower cotton costs
RL Forward Guidance & Outlook
Ralph Lauren raised its full-year fiscal 2026 outlook. Constant currency revenue growth is now expected at high-single to low-double digits, up from 5%-7% previously. Foreign currency is expected to benefit revenue growth by approximately 200-250 basis points. Operating margin is now expected to expand approximately 100-140 basis points in constant currency, up from 60-80 basis points, with foreign currency benefiting operating margin by approximately 50 basis points. For Q4, revenue is expected to increase approximately mid-single digits in constant currency, with foreign currency benefiting growth by 200-300 basis points. Q4 operating margin is expected to contract approximately 80-120 basis points in constant currency due to increased U.S. tariffs and higher marketing spend. Full-year and Q4 tax rates are expected at approximately 19%-21%. Capital expenditures are expected at approximately 4%-5% of revenue.
RL YoY Financials
Q3 2026 vs Q3 2025, source: SEC Filings
RL Revenue by Segment
With YoY comparisons, source: SEC Filings
RL Revenue by Geography
With YoY comparisons, source: SEC Filings
“This holiday season, our teams delivered strong, high-quality growth across geographies and consumer segments, enabling accelerated investment in our long-term strategic priorities and brand elevation.”
— Patrice Louvet, Q3 2026 Earnings Press Release
RL Earnings Trends
RL vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
RL EPS Trend
Earnings per share: estimate vs actual
RL Revenue Trend
Quarterly revenue: estimate vs actual
RL Quarterly Results
4 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q3 26 BEAT | $5.81 | $6.22 | +7.10% | $2.41B | +4.16% |
| Q2 26 BEAT | $3.45 | $3.79 | +9.96% | $2.01B | +6.66% |
| Q1 26 BEAT | $3.50 | $3.77 | +7.79% | $1.72B | +3.78% |
| Q4 25 BEAT FY | $2.04 | $2.27 | +11.27% | $1.70B | +3.02% |
| FY Full Year | $12.09 | $12.33 | +2.02% | $7.08B | +0.71% |