Ralph Lauren (RL) reported net income of $296.6 million in the second fiscal quarter of 2027, ended September 26, 2026, compared with $207.5 million in the same period a year earlier. Diluted earnings per share (EPS) was $4.87, up 47%. Adjusted earnings per share (non-GAAP, which excludes items the company considers non-recurring) was $4.64, up 22%, and adjusted net income totaled $282.7 million.
Revenue rose 9% to $2.2 billion ($2,193.3 million), and increased 10% in constant currency. Asia grew 28% to $571 million; North America, 6% to $885 million; and Europe, 1% to $696 million. Comparable sales in the company's own retail stores rose 10%, and average unit retail (AUR) grew 9%.
Gross margin was 74.2%, 620 basis points above the prior year, driven mainly by tariff refunds received in the quarter. Adjusted gross margin was 70.5%. Operating income was $363.7 million, with a margin of 16.6%. Adjusted operating income was $344.6 million, with an adjusted margin of 15.7%, up 160 basis points.
The company ended the quarter with $1.8 billion in cash and short-term investments and $1.2 billion in total debt. It repurchased about $250 million in Class A shares in the quarter, totaling $500 million so far in the fiscal year, which completes its share repurchase programs for fiscal year 2027. The dividend declared was $1.00 per share for the quarter.
For fiscal year 2027, Ralph Lauren now expects constant-currency revenue growth centered between 6% and 7%, up from 5% to 6% previously. It also forecasts operating margin expansion of about 80 to 100 basis points in constant currency. For the third fiscal quarter, it projects revenue growth of 3% to 4% in constant currency and operating margin expansion of 50 to 70 basis points.
