Ralph Lauren's Sales Soar 10%, Exceeding Expectations
Ralph Lauren's sales soared by 10% year-over-year on a constant currency basis in the third quarter of 2026, surpassing internal projections. This remarkable growth builds upon the brand's double-digit revenue increases in the first and second quarters, with 11% and 14% gains, respectively. CEO Patrice Louvet attributed this success to the brand's strong performance across various regions, channels, and product categories.
The holiday season proved particularly successful, with full-price sell-throughs exceeding expectations. This strong demand has enabled Ralph Lauren to enhance its long-term strategy, focusing on improved sales quality and gross margin expansion in each region. The brand's resilience in the face of high US tariffs, which have impacted gross margins, is a testament to its ability to navigate challenging market conditions.
Lyst's Q4 index further solidified Ralph Lauren's position, ranking it fourth and climbing five positions from the previous quarter. This achievement is a direct result of the brand's 'Next Great Chapter: Drive' strategy, introduced in September 2025, which has been instrumental in elevating the brand's status.
By channel, direct-to-consumer (DTC) sales experienced high-single-digit growth, while wholesale sales doubled. Geographically, Asia led the charge with a 22% year-over-year revenue increase, reaching $620 million. China's revenues surged by over 30%, and Japan's revenues grew by double digits. Europe saw a 4% increase to $676 million, driven by strong performance in Germany, the UK, Italy, and Spain. North America's revenues rose by 8% to $1.1 billion, surpassing company expectations across both DTC and wholesale channels.
The brand's DTC business attracted a record 2.1 million new consumers in Q3, with a notable focus on younger consumers, women, and VICs. CEO Louvet emphasized the brand's ability to sustain this momentum by expanding its cinematic world, drawing parallels between Ralph Lauren and renowned directors like Martin Scorsese and Steven Spielberg.
Despite these successes, CFO Justin Picicci expressed cautious optimism about the North American operating environment, citing potential disruptions in the wholesale channel, including the Saks Global bankruptcy. However, the company's minimal net exposure to Saks this year reflects its disciplined management approach, and it continues to shift its focus to full-price DTC.
Looking ahead, Ralph Lauren anticipates mid-single-digit revenue growth in the fourth quarter and has raised its full-year guidance. The company now expects high-single to low-double-digit revenue increases on a constant currency basis, surpassing its previous outlook of a 5% to 7% uplift.
CEO Louvet expressed pride in the team's progress and execution, emphasizing the brand's commitment to creating value, driving core business, accelerating high-potential categories, exploring meaningful geographic opportunities, and maintaining operational discipline in an uncertain market.
