Ralph Lauren revenues increased 10% year-on-year on a constant currency basis to $2.4 billion in the third quarter of 2026, once again beating internal expectations. This continues the brand’s double-digit growth streak for fiscal 2026, following revenue increases 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 the top and bottom line, with broad-based performance across geographies, channels, and product categories,” CEO Patrice Louvet said on Thursday’s earnings call. “Full-price sell-throughs were better than we expected this holiday [season], as our brand experiences and products resonated globally. This strong demand enabled us to continue driving our long-term elevation journey with improved quality of sales and gross margin expansion in each region.”
Strong sales helped to offset the impact of high US tariffs, as the brand begins to flow through more products at the higher rates, the CEO added. The company expects tariffs to continue to impact gross margins in the first half of the next fiscal year.
The results come off the heels of Lyst’s Q4 index, where Ralph Lauren climbed five positions to fourth place in the brand ranking. It’s a reflection of Ralph Lauren’s continued success in its elevation play, which is now steered by the company’s Next Great Chapter: Drive strategy, introduced in September 2025.
By channel, direct-to-consumer (DTC) sales were up high-single digits, while wholesale grew double digits. By region, Asia led growth with revenues up 22% year-on-year to $620 million; China revenues increased over 30%; and Japan revenues were up double digits. Europe was up 4% to $676 million, led by Germany, the UK, Italy and Spain. North America revenues were up 8% to $1.1 billion, above company expectations, across DTC and wholesale.
The brand’s DTC business acquired a record 2.1 million new consumers in Q3, most notably younger consumers, women, and VICs, Louvet said. He is confident in Ralph Lauren’s ability to sustain this momentum via further building out the brand world. Louvet likened Ralph to a movie director: “Think [more] Martin Scorsese or Steven Spielberg than traditional designer. Ralph and his talented design team invite people into a cinematic world.”
Still, it’s not all smooth sailing. “While the consumer has proven more resilient than we initially anticipated this year, we remain somewhat cautious of the North American operating environment, partly due to further consolidation across the wholesale channel, including recent developments at Saks,” CFO Justin Picicci said, highlighting the potential disruption of the Saks Global bankruptcy. “Our net exposure to Saks this year is minimal, reflecting our disciplined and proactive management of the account,” he said, adding that the company will continue strategically shifting its focus to full-price DTC.
Looking to the fourth quarter, Ralph Lauren expects revenues to increase approximately mid-single digits. The company is also raising its full-year guidance, now expecting revenues to increase high-single to low-double digits on a constant currency basis, up from its prior outlook of a 5% to 7% uplift.
“Ralph and I are proud of our team’s progress and execution through the first three quarters of this fiscal year, including through the important holiday season,” Louvet said. “Even as we continue to navigate an uncertain macro and geopolitical environment, we remain focused on what we can control and what’s ahead for Ralph Lauren: creating value; driving our core while accelerating our high-potential category; meaningful geographic white space; and an ability to execute with creativity, agility, and operating discipline.”
Ralph Lauren is currently gearing up for the Winter Olympics in Milan and Cortina d’Ampezzo, for which it is the official outfitter of Team USA. Ralph Lauren unveiled its Team USA uniforms in the third quarter, ahead of the event, which is commencing on Friday. Louvet described the Opening Ceremony as the brand’s “biggest fashion show”.
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