Earnings Call
Aug 6, 2026
Q2 FY2026
EPS Estimate
2.50
EPS Actual
3.17
Post-Earnings Close
$395.83
Earnings Reaction
+4.0%
Ralph Lauren's second quarter of fiscal 2026 was a standout print by virtually every measure, with 14% constant-currency revenue growth, well ahead of the high single-digit guidance management had set, and adjusted operating margin expanding 210 basis points to 13.5%. The quarter marked the company's highest Q2 revenues since beginning its elevation journey over eight years ago, and the breadth of the outperformance was notable: all three regions delivered double-digit growth, retail comps rose 13% globally, and both gross and operating margins exceeded internal expectations. Adjusted gross margin held at 67.7%, up 70 basis points, as AUR growth of 12%, full-price mix improvement, and lower cotton costs more than offset tariff headwinds, labor inflation, and non-cotton material costs. The result is a business that is not merely growing but doing so with improving quality of revenue, a distinction management returned to repeatedly throughout the call.
Report generated on May 20, 2026
AI-generated earnings analysis. Not investment advice.
Chief Executive Officer
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
Read the full RL analysis
The complete report, with key themes, analyst Q&A summary, notable quotes, and market context — is free with an account. No password, no card.