Ralph Lauren reported third-quarter earnings per share of $5.82, surpassing analyst estimates of $5.78, and delivered adjusted EPS of $6.22, a 29% increase from $4.82 a year earlier. Revenue rose 12% year over year to $2.41 billion, topping forecasts of $2.30 billion, with constant-currency growth of 10% and foreign-exchange tailwinds contributing approximately 220 basis points to the topline.

Sales were buoyed by continued strength in Polo shirts and leather handbags, as higher-income shoppers maintained spending on luxury apparel. Direct-to-consumer revenue saw broad-based growth, with average unit retail up 18% across the network. Asia led regional performance with revenues up 22% (over 30% growth in China), while North America and Europe saw high-single-digit and mid-single-digit constant-currency gains, respectively.

Management cautioned that higher U.S. import tariffs will compress fourth-quarter operating margin by roughly 80 to 120 basis points. Despite gross margin expansion of 150 basis points this quarter—driven by favorable mix and lower cotton costs—investors focused on the looming margin pressure, causing the stock to slide over 7% intraday following the announcement.

For fiscal 2026, Ralph Lauren lifted its revenue growth forecast to the high single-digit to low double-digit range (up from 5%–7%), and now expects operating-margin expansion of 100 to 140 basis points versus a prior 60 to 80 basis-point target. Fourth-quarter revenue is projected to grow at a mid-single-digit rate in constant currency, underscoring management’s view of sustained demand despite tariff challenges.