Ralph Lauren (NYSE: RL) reported Q3 EPS of $6.22, $0.44 better than the analyst estimate of $5.78. Revenue for the quarter came in at $2.41 billion versus the consensus estimate of $2.3 billion.

GUIDANCE

For Fiscal 2026, the Company now expects revenues to increase high-single to low-double digits on a constant currency basis, up from its prior outlook of a 5% to 7% increase. Based on current exchange rates, foreign currency is still expected to benefit revenue growth by approximately 200 to 250 basis points in Fiscal 2026.

The Company now expects operating margin for Fiscal 2026 to expand approximately 100 to 140 basis points in constant currency, up from 60 to 80 basis points previously, driven by gross margin expansion and operating expense leverage. Foreign currency is now expected to benefit gross and operating margins by approximately 20 and 50 basis points, respectively.

For the fourth quarter, the Company expects revenues to increase approximately mid-single digits on a constant currency basis. Foreign currency is expected to benefit revenue growth by approximately 200 to 300 basis points in the quarter.

Operating margin for the fourth quarter is expected to contract approximately 80 to 120 basis points in constant currency, reflecting an increase in U.S. tariffs and higher marketing spend to support key global activations over a seasonally smaller revenue base. Foreign currency is expected to benefit gross and operating margins by approximately 50 and 100 basis points, respectively.

The Company\'s full year Fiscal 2026 and fourth quarter tax rates are each expected to be in the range of approximately 19% to 21%.

The Company continues to expect capital expenditures for Fiscal 2026 of approximately 4% to 5% of revenue.

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