Ralph Lauren (NYSE: RL) reported Q4 EPS of $2.80, $0.32 better than the analyst estimate of $2.48. Revenue for the quarter came in at $2 billion versus the consensus estimate of $1.84 billion.

First Quarter and Preliminary Full Year Fiscal 2027 Outlook

The Company's outlook is based on its best assessment of the current geopolitical and macroeconomic environment, including tariffs, inflationary pressures, and other consumer spending-related headwinds, global supply chain disruptions, and foreign currency volatility, among other factors. The full year Fiscal 2027 and first quarter guidance excludes any potential restructuring-related and other net charges that may be incurred in future periods, as described in the "Non-U.S. GAAP Financial Measures" section of this press release. Given the high level of volatility in the current operating environment, this outlook is considered preliminary and subject to change as a result of ongoing macroeconomic developments and other considerations.

For Fiscal 2027, the Company expects constant currency revenues to increase approximately mid-single digits to last year on a 52-week comparable basis, centered around 4% to 5%.

The Company expects operating margin for Fiscal 2027 to expand approximately 40 to 60 basis points in constant currency, driven by modest gross margin expansion and operating expense leverage. Gross and operating margin expansion are expected to be stronger in the first half of the fiscal year, largely due to the timing of key marketing activations compared to the prior year period and a lower prevailing tariff rate of 10% during the period.

Based on current exchange rates, foreign currency is expected to have a roughly neutral impact on revenue, gross and operating margin in Fiscal 2027.

Fiscal 2027 is a 53-week year, with the 53rd week expected to contribute an additional 1 point to revenue growth and benefit operating margin slightly for the full fiscal year.

For the first quarter, the Company expects revenues to increase approximately mid- to high-single digits to last year on a constant currency basis.

Operating margin for the first quarter is expected to expand approximately 80 to 120 basis points in constant currency, led by gross margin expansion. Foreign currency is expected to have a roughly neutral impact on revenue, gross and operating margin in the first quarter.

The full year Fiscal 2027 tax rate is expected to be in the range of 21% to 22%, assuming a continuation of current tax laws. First quarter of Fiscal 2027 tax rate is expected to be approximately 22% to 23%.

The Company is planning capital expenditures for Fiscal 2027 of approximately 4% to 5% of revenue.

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