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)
Wholesale revenue dropped 12.8 per cent on a currency-adjusted basis to €4.9 billion, while direct-to-consumer (DTC) sales increased 3.4 per cent, lifting the DTC share to 32.4 per cent from 28.9 per cent.
Regionally, sales fell 6.9 per cent in Europe, Middle East and Africa (EMEA), 7.4 per cent in Asia-Pacific and 10 per cent in the Americas, with North America driving much of the decline.
Puma has reported sales of €7.3 billion (~$8.61 billion) in FY25, with currency-adjusted revenue down 8.1 per cent amid strategic reset actions.
Wholesale declined while DTC share increased.
Margins contracted and EBIT turned negative, leading to a net loss.
Q4 saw sharper declines across regions and categories.
Puma expects further sales softness and negative EBIT in FY26.
By product segment, footwear sales decreased 7.1 per cent, apparel declined 9.7 per cent and accessories fell 8.5 per cent, although selective growth was observed in running, training and premium sport style lines, Puma said in a press release.
Profitability weakened significantly during the year. Gross margin contracted 260 basis points to 45.0 per cent, impacted by promotional activity, inventory reserves, unfavourable mix and currency effects. Adjusted EBIT turned negative at €165.6 million, while reported EBIT declined to -€357.2 million after €191.6 million in one-off costs related mainly to the cost efficiency programme and goodwill impairments.
Loss from continuing operations widened to -€643.6 million, translating to earnings per share of -€4.37 versus €1.88 in the prior year.
From a balance sheet perspective, inventories rose 2.3 per cent to €2.06 billion as inventory takebacks from wholesale partners supported distribution clean-up. Working capital increased 20.2 per cent, while trade receivables and payables declined sharply in line with reduced sales and purchasing activity. Puma ended the year with additional financing capacity, including €1,202.2 million in unutilised credit lines.
Fourth quarter (Q4) performance reflected the peak impact of the strategic reset. Currency-adjusted sales declined 20.7 per cent to €1,564.9 million, with reported revenue down 27.2 per cent due to currency headwinds. The decline was driven by deliberate reductions in wholesale exposure, inventory clearance actions and lower promotional intensity.
Wholesale sales fell 27.7 per cent in Q4, while DTC revenue decreased 8.0 per cent, although DTC share increased to 41.1 per cent from 35.5 per cent. Regionally, sales dropped 12.6 per cent in Asia-Pacific, 22.2 per cent in the Americas and 24.3 per cent in EMEA.
Across product divisions, footwear sales declined 25.4 per cent, apparel fell 13.7 per cent and accessories dropped 18.2 per cent, with selective resilience in training and performance running categories.
Profitability deteriorated sharply. Gross margin declined to 40.2 per cent from 47.7 per cent due to promotions, inventory provisions and currency effects. Adjusted EBIT fell to -€228.8 million, while reported EBIT reached -€307.7 million following one-off costs linked to restructuring and impairment charges. The quarter ended with a loss from continuing operations of -€335 million.
Arthur Hoeld, CEO of Puma, said: “2025 was a reset year for us. We want to establish Puma as a top 3 sports brand globally, return to above-industry growth and generate healthy profits in the medium term. It is crucial to make the Puma brand less commercial and ensure we once again excite our consumers with attractive products, compelling storytelling and distribution in the right channels. I am satisfied with the progress we have made so far. We cleaned up most of our distribution by reducing promotions in our own channels and cutting our exposure to those wholesale channels that damage our brand’s desirability. To better position our product icons and our performance offering and tell more engaging product stories, we created the right structures inside our company. We also addressed operational inefficiencies and further optimised our cost base.”
Looking ahead, Puma expects currency-adjusted sales in fiscal 2026 to decline in the low- to mid-single-digit percentage range, with EBIT projected between -€50 million and -€150 million. Capital expenditure of around €200 million is planned as the company continues investments in brand repositioning and digital capabilities, added the release.
Fibre2Fashion News Desk (SG)
Nominal GDP, or GDP at current prices, is estimated to grow at 8.6 per cent to reach ₹345.47 trillion in FY26 against ₹318.07 trillion in 2024-25.
India’s real GDP is estimated to grow at 7.6 per cent to ₹322.58 trillion (~$3.54 billion) in FY26 compared to the first revised GDP estimate of ₹299.89 trillion for FY25 (7.1 per cent growth).
It released the new series of annual and quarterly national accounts estimates with FY23 base.
Real GVA is projected to grow at 7.7 per cent to reach ₹294.40 trillion in FY26 against ₹273.36 trillion in FY25.
Real gross value added (GVA) is projected to grow at 7.7 per cent to reach ₹294.40 trillion in FY26 against ₹273.36 trillion in FY25 (a 7.3-per cent growth rate).
Nominal GVA is estimated to grow at 8.7 per cent to hit ₹313.61 trillion during FY26, against ₹288.54 lakh crore in 2024-25.
Robust economic performance in FY26 is primarily on account of robust real growth observed in the second quarter (8.4 per cent) and third quarter (7.8 per cent).
The manufacturing sector has been the major driver of resilient performance of the economy the consecutive three fiscals after rebasing, a release from the ministry said.
Both private final consumption expenditure and grossed fixed capital formation exhibited more than 7-per cent growth rate in FY26.
Fibre2Fashion News Desk (DS)
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