RL · 8-K · 20260806PR053896

Operating Income and Margins

RALPH LAUREN CORP · 2026-08-06 · Importance 59 · Surprise 48 · Contradicted

Reported operating income increased to $342.4 million from $273.6 million, while adjusted operating income rose to $365.9 million from $292.9 million. Reported operating margin improved to 17.5% from 15.9%, and adjusted operating margin expanded 170 basis points to 18.7%. Asia operating income increased to $197.7 million and margin expanded 280 basis points to 33.5%. North America operating margin increased 240 basis points to 23.1%, while Europe margin remained 26.4%.

Key facts

• Company now expects operating margin for Fiscal 2027 to expand approximately 60 to 80 basis points in constant currency, up from prior outlook. source
• First quarter operating income: $342 million and operating margin: 17.5% on a reported basis; adjusted operating income: $366 million and adjusted operating margin: 18.7%, 170 basis points above prior year. source
• Second quarter operating margin expected to expand approximately 80 to 100 basis points in constant currency; foreign currency expected roughly neutral to margins in the quarter. source
• Net income for the first quarter: $262 million, or $4.28 per diluted share on a reported basis; adjusted net income: $281 million, or $4.59 per diluted share. source
• Reported diluted EPS for Q1 FY2026 was $3.52 and adjusted diluted EPS was $3.77. source

Impact estimates