NYSE$RL

Ralph Lauren Corp · Q3 2025 earnings

Q3 2025 earnings · · Before market open · Investor relations

Briefing

Ralph Lauren's Q3 2025 earnings exceeded expectations, driven by strong holiday performance across all geographies and increased full-year outlook.

Ralph Lauren reported an 11% increase in revenue to $2.1 billion for the third quarter of fiscal 2025, driven by better-than-expected holiday performance in all geographies. Adjusted earnings per diluted share rose by 16% to $4.82. The company raised its full-year fiscal 2025 revenue and adjusted operating margin expansion outlook based on strong year-to-date performance.

  • Revenue increased by 11%, surpassing expectations with strong holiday sales in all regions.
  • Global Direct-to-Consumer comparable store sales grew by 12%, fueled by positive retail comps across regions and channels.
  • Adjusted gross and operating margin expansion exceeded expectations due to strong full-price demand and expense discipline.
  • The company maintained a healthy balance sheet with accelerated free cash flows and well-positioned inventories.

Headline financials

Total Revenue

$2.14B

Previous: $1.93B+10.8%
EPS (adj)

$4.82

Previous: $4.19+15.0%
Adjusted Operating Margin

18.7%

No prior period
Gross Margin

68.4%

No prior period
Ralph Lauren Stores

579

No prior period
Concession Shops

679

No prior period
Capital Expenditures

-$61.2M

Previous: -$42.5M-44.0%
Net Income

$297M

Previous: $277M+7.5%
Operating Income

$390M

Previous: $318M+22.7%
Gross Profit

$1.47B

Previous: $1.29B+14.0%

Revenue & EPS history

Ralph Lauren · Revenue · Quarterly

$2.14B

Q3 2025+10.8%vs Q3 2024
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Ralph Lauren · $8.11B total across 4 segments · Q4 2026

  • North America
    $3.33B+336.6%
  • Europe
    $2.54B+309.8%
  • Asia
    $2.1B+273.2%
  • Other
    $143M+334.5%

Forward guidance

The company expects constant currency revenues to increase in a range of approximately 6% to 7% for fiscal year 2025. Operating margin for the fourth quarter is expected to expand approximately 120 to 140 basis points in constant currency.

Tailwinds

  • Constant currency revenues are expected to increase by 6% to 7% for fiscal year 2025.
  • Gross margin is expected to expand by approximately 130 to 170 basis points for fiscal year 2025.
  • Operating margin is expected to expand by approximately 120 to 160 basis points in constant currency for fiscal year 2025.
  • Operating margin for the fourth quarter is expected to expand by approximately 120 to 140 basis points in constant currency.
  • Gross margin expansion of approximately 80 to 120 basis points is expected for the fourth quarter.

Headwinds

  • Foreign currency is expected to negatively impact revenues by approximately 100 to 150 basis points in Fiscal 2025.
  • Foreign currency is expected to negatively impact both gross and operating margins by approximately 30 to 50 basis points for fiscal year 2025.
  • Foreign currency is expected to negatively impact revenue growth by approximately 300 basis points for the fourth quarter.
  • Foreign currency is expected to negatively impact both gross and operating margins by approximately 60 to 80 basis points in the fourth quarter.
  • The company's full year Fiscal 2025 tax rate is still expected to be in the range of approximately 22% to 23%, increasing from 19% in the prior year.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2025

Historical avgQ3 2025

+1.3%

Avg return

Earnings day

+2.2%

Avg return

5 days after

+2.6%

Avg return

30 days after

52%

36 / 69 earnings

Positive

+20.8%

Q2 2016

Best reaction

-24.5%

Q3 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026+12.6%+14.2%+25.2%
Q3 2026-4.5%+0.4%-4.6%
Q2 2026-0.6%+5.3%+16.3%
Q1 2026-6.4%-1.1%+3.0%
Q4 2025+1.1%+4.5%-3.5%
Q3 2025+9.7%+9.3%-6.6%
Q2 2025+7.0%+0.7%+10.9%
Q1 2025-2.0%-3.6%+4.8%
Q4 2024+5.6%+10.4%+11.2%
Q3 2024+18.9%+19.2%+19.6%
Q2 2024+3.3%+2.2%+16.7%
Q1 2024-5.5%-6.9%-9.0%
Q4 2023+4.2%+1.0%+10.5%
Q3 2023+1.0%+4.3%-3.2%
Q2 2023+15.7%+15.1%+19.1%
Q1 2023-5.6%-2.3%-6.9%
Q4 2022+3.0%+8.7%+2.6%
Q3 2022+4.4%+9.7%+2.1%
Q2 2022-5.2%-1.7%-8.2%
Q1 2022+4.4%+4.4%-0.4%
Q4 2021-7.6%-7.2%-13.4%
Q3 2021+3.1%+4.9%+16.2%
Q2 2021-10.0%-7.0%+18.4%
Q1 2021-1.7%-5.4%+6.4%
Q4 2020-1.7%-5.7%-16.8%
Q3 2020+8.2%+6.4%-4.5%
Q2 2020+12.8%+10.4%+10.7%
Q1 2020-6.3%-11.1%-20.9%
Q4 2019-2.2%-4.9%-4.8%
Q3 2019+10.1%+9.1%+7.7%
Q2 2019-6.9%-9.4%-20.4%
Q1 2019-5.2%-4.1%-3.0%
Q4 2018+15.6%+17.7%+11.7%
Q3 2018-3.9%-6.6%-6.9%
Q2 2018+1.4%-5.0%+6.9%
Q1 2018+11.4%+7.2%+13.6%
Q4 2017-4.8%-6.9%-0.9%
Q3 2017-12.8%-13.0%-8.7%
Q2 2017+4.8%+10.8%+6.7%
Q1 2017+14.3%+14.8%+6.0%
Q4 2016+1.2%
Q3 2016-24.5%
Q2 2016+20.8%
Q1 2016-2.5%
Q4 2015-1.1%
Q3 2015-17.0%
Q2 2015+3.2%
Q1 2015+1.0%
Q4 2014-3.1%
Q3 2014-1.3%
Q2 2014+0.9%
Q1 2014-6.2%
Q4 2013-3.8%
Q3 2013+8.0%
Q2 2013+1.4%
Q1 2013-3.0%
Q4 2009-0.0%
Q4 2012+2.5%
Q3 2012+9.8%
Q2 2012-4.9%
Q1 2012+8.9%
Q4 2011+10.2%
Q2 2011+10.2%
Q3 2010+9.7%
Q3 2011+9.7%
Q2 2010-5.5%
Q1 2011-5.5%
Q4 2010-5.5%
Q1 2010-5.5%

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