Fashion
US’ Ralph Lauren posts 14% revenue surge in Q1 FY26, ups outlook
The company’s earnings per diluted share was $3.52, up 35 per cent year-over-year (YoY) on a reported basis, and $3.77, up 40 per cent on an adjusted basis.
Ralph Lauren has reported a 14 per cent YoY rise in its revenue to $1.7 billion in Q1 FY26, with net income at $220 million and adjusted EPS up 40 per cent to $3.77.
The growth was led by Asia, Europe, and North America.
Strong DTC sales, margin expansion, and new store openings boosted performance.
The company raised its full-year outlook while maintaining a cautious global outlook.
The net income for the quarter reached $220 million on a reported basis and $236 million on an adjusted basis. The gross profit stood at $1.2 billion, with a gross margin of 72.3 per cent, up 180 basis points (bps) from the prior year, aided by higher average unit retail (AUR), favourable product and geographic mix, and lower cotton costs. AUR rose 14 per cent across the company’s direct-to-consumer (DTC) network, Ralph Lauren said in a press release.
The operating income totalled $274 million (15.9 per cent margin) on a reported basis, and $293 million (17 per cent margin) on an adjusted basis. Operating margins improved across all key regions, with Asia leading at 30.7 per cent, Europe at 26.4 per cent, and North America at 20.7 per cent.
The company also reported continued progress on its brand-building initiatives. Ralph Lauren acquired 1.4 million new DTC customers in Q1 and reached nearly 66 million social media followers. The quarter featured high-impact events such as the brand’s first-ever fashion show in Shanghai, the MLB World Tour Tokyo Series activations, and a Spring ’26 runway show in Milan.
“What we stand for—aspiration, optimism, individuality and authenticity—inspires people in every corner of the world,” said Ralph Lauren, executive chairman and chief creative officer at the company. “And we are bringing these values to life and inviting people to step into their dreams in new and powerful ways—from our first-ever fashion presentation in Shanghai this April to our MLB World Tour Tokyo Series activations and our Women’s Polo presentation in Paris.”
The company ended the quarter with $2.3 billion in cash and short-term investments and $1.6 billion in total debt. Inventory levels rose 18 per cent to $1.2 billion. Ralph Lauren also repurchased approximately $250 million worth of Class A common stock during the quarter.
“We delivered strong first quarter results across geographies, channels and consumer segments,” said Patrice Louvet, president and chief executive officer (CEO) at Ralph Lauren. “While we continue to approach the current global operating environment with prudence, we are encouraged by the broad-based strength in our brand and our businesses as we execute on our long-term strategic priorities—including recruiting new and younger consumers, strengthening our core and high-potential categories, and developing our key city ecosystems in each region.”
Looking ahead, the company raised its FY26 guidance. It now expects revenue to increase in the low-to-mid-single digits in constant currency, with foreign exchange expected to provide a 150 to 200 basis point benefit. The operating margin is projected to expand 40 to 60 bps in constant currency, with additional FX benefits.
For the second quarter (Q2), the revenue is expected to grow by high single digits in constant currency, with operating margin expansion of 120 to 160 bps. The company anticipates a tax rate of approximately 19 to 20 per cent for the full year, and 15 to 17 per cent for the second quarter. Capital expenditure for FY26 remains estimated at 4 to 5 per cent of revenue.
Fibre2Fashion News Desk (SG)
NITMA president Sidharth Khanna warned that the current inverted duty structure—where polyester staple fibre (PSF) is taxed at 18 per cent and polyester spun yarn (PSY) at 12 per cent while fabric is at 5 per cent—is unworkable for spinners. He urged a cut in PSF and PSY rates to 5 per cent to align with fabric.
India’s textile sector is under strain as steep US tariffs take effect today.
The Northern India Textile Mills Association (NITMA) has urged the GST Council, meeting on September 3–4, 2025, to address the inverted duty structure in the man-made fibre value chain by reducing GST on polyester staple fibre (18 per cent) and polyester spun yarn (12 per cent) to 5 per cent, aligning with fabric.
According to Khanna, the present system burdens the industry with blocked working capital in GST refunds, unutilised input tax credits, administrative delays, loss of state SGST incentives, and unfair competition from imports.
“This is a critical moment for India’s textile sector. Decisive action to remove the inverted duty structure will not only counteract the impact of US tariffs but also unlock growth and investment across the MMF value chain, thereby making this event a blessing in disguise,” Khanna stressed.
Fibre2Fashion News Desk (KD)
Published
August 28, 2025
A Deutsche Bank report this week has sent the share prices of a number of UK retailers down on the back of falling consumer confidence, and it looks like retailer confidence is low too if the latest CBI retail report is a guide.
First, a quick look at that Deutsche Bank report. It showed UK consumer confidence at a post-pandemic low and raised fears that autumn will be tough for discretionary retailers. Big names such as Next, M&S and Primark owner ABF saw their share prices falling with ABF’s price down as much as 6% in recent days.
It coincided with the latest CBI retailer survey that showed retail sales volumes “fell at a strong pace in the year to August, extending the downturn to an 11th consecutive month”.
That said, the business body reported retailers expecting the pace of decline to ease in September. So perhaps those share price falls may be reversed soon?
Regardless, the CBI report wasn’t exactly upbeat. It said weak demand and gloomy sentiment continue to weigh on retailers’ investment and hiring plans. Price pressures remain elevated, with selling prices rising at their fastest rate since November 2023.
Year-on-year retail sales volumes fell at a strong pace in August with a weighted balance of -32% from -34% in July. Sales are expected to decline at a slower rate next month (-16%).
First though, an explanation. Those figures don’t mean that the volume of sales fell by 34%. Instead, the weighted balance showed 34% of retailers saying their sales fell to one degree or another.
Back with the report, retail sales for the time of year were judged to be “poor”, to a somewhat greater extent than in July (-19% from -10% in July). Next month’s sales are set to remain below seasonal norms to a similar degree (-20%).
Sentiment among retailers remained poor, with their business situation expected to deteriorate over the coming quarter, but to a lesser extent than last quarter (-10% from -29% in May).
Retailers also expect to reduce capital expenditure over the next 12 months (compared to the previous 12) to a slightly lesser degree than in May (-42% from -47% in May), but intentions remain poor by historical standards (long-run average of -3%).
Meanwhile retail employment continued to decline at a broadly unchanged rate in the year to August (-14% from -15% in May). Headcount is expected to fall at a slightly quicker pace next month (-19%).
And the survey showed retail selling prices rose in the year to August at the fastest rate since November 2023 (+65% from +35% in May). Retailers anticipate selling prices to increase at a relatively slower pace in September (+43%).
Online retail sales volumes were broadly flat in the year to August (+3% from +4% in July) but are expected to contract at a fast rate in September (-35%).
Martin Sartorius, CBI Principal Economist, said of this: “Retailers endured another tough month in August. Weak demand and higher labour costs continue to put pressure on margins, dampening sentiment across the retail and wider distribution sector. This downbeat outlook is reflected in firms’ plans to scale back investment and hiring.
“The government’s fiscal decisions are continuing to bite, and retailers’ struggles send a clear signal: business cannot be asked to balance the books again at the Autumn Budget. Building business confidence through delivery must be the priority — starting with a rethink of the Employment Rights Bill, which risks piling on unnecessary costs and holding back jobs and investment.”
Copyright © 2025 FashionNetwork.com All rights reserved.
Published
August 28, 2025
Central London’s department stores continue to attract brands for pop-ups and permanent spaces with Selfridges, Harrods and Liberty all adding key names recently.
Luxury lifestyle brand Smythson of Bond Street has opened a new concession in the latter. It’s in Liberty’s homewares department on the third floor. The brand’s signature diaries, notebooks, and stationery, along with a selection of leather accessories and a curated edit of the brand’s bestselling bags are all on offer with personalisation also available.
The brands have developed an exclusive limited-edition range of Smythson x Liberty products with the first collection having just launched. There’s a selection of signature notebooks and diaries in Liberty Purple, Smythson’s Nile Blue, and a seasonal Coral colourway, each lined with a Liberty silk in coordinating colours. The second edit, launching in November, will feature a range of bestselling accessories.
Meanwhile UK-based padel apparel brand Pulco has debuted at Harrods, becoming the store’s first-ever padel clothing label, underlining the sport’s surging popularity.
Products on offer include the key Aircon shirt made from an ultra-lightweight, Italian-engineered fabric “featuring a breakthrough weave that rapidly wicks moisture from the inside out, delivering unrivalled breathability and comfort in play”.
But as well as performance-wear, there’s a full lifestyle offering “blending elevated athletic apparel with understated, off-court elegance”. That means shirts, shorts, hoodies, jackets, T-shirts, sweatpants, caps, socks and more. Retail prices range from £10 up to £165.
And back in the West End, Samsøe Samsøe has moved to a new space within Selfridges that presents the Scandinavian brand’s contemporary womenswear “within the universe of its experiential design”. The pop-up revolves around the AW25 collection that also inspires the space, “which emulates the immersive ‘Radiant Connection’ exhibition” that Samsøe Samsøe introduced the collection with during Copenhagen Fashion Week.
Set against the backdrop of the exhibition’s set design and illustrated by the lookbook imagery of the season, the pop-up “becomes illuminated with the lime green shade that defines the visual identity” of the collection.
The brand said the pop-up is a “next step within Samsøe Samsøe’s ever-increasing focus on the UK market” and should help it reach new consumers.
Copyright © 2025 FashionNetwork.com All rights reserved.
NITMA urges GST council to fix inverted textile duty as US tariffs hit
Stock Market Updates: Sensex Slides 700 Points, Nifty Below 24,550; IT, Realty Stocks Under Pressure
As the Commanders set their roster, an undrafted rookie had a ‘surreal’ day
-
Business1 week agoRSS Feed Generator, Create RSS feeds from URL
-
Tech1 week agoKorea develops core radar components for stealth technology
-
Fashion1 week agoTariff pressure casts shadow on Gujarat’s textile landscape
-
Fashion7 days agoRent the Runway to swap debt for equity in revival effort
-
jobs1 week agoData Analyst at Easy Agile – Australia
-
Fashion1 week agoUS retailers split on holiday prospects amid consumer caution
-
Tech7 days agoQi2’s Magnetic Wireless Charging Finally Arrives on Android
-
Sports1 week ago
Dan Quinn says Terry McLaurin is healthy, ‘closer’ to Commanders return