A maker of luxury lifestyle goods, Ralph Lauren designs and sells clothing, handbags, footwear, fragrances, home items, and hospitality across brands like Polo Ralph Lauren, Lauren Ralph Lauren, and Chaps. The company began in 1967 when designer Ralph Lauren launched a line of wide, handmade neckties under the name "Polo"—chosen for its Old Hollywood glamour—working out of a single drawer in the Empire State Building.
Ralph Lauren's Q1 FY2027 gross margin reached 73.7%, the highest in the table's history, as revenue rose 14%.
hit a new high. rose 14% to $1.96 billion and climbed 25% to $342 million, driven by mid-teens growth across all segments. The company's pricing power is holding, but $325 million in buybacks this quarter continues to draw down cash.
Key takeaways
expanded 140 to 73.7%, the highest quarterly rate in the table's history, driven by mid-teens (AUR) growth and favorable channel and geographic mix, partially offset by tariff and product cost pressures.
rose 14.0% to $1.96 billion, with double-digit growth in North America and Asia and mid-single-digit growth in Europe.
rose 25.2% to $342.4 million, as expenses leveraged 20 to 55.0% of , with higher compensation, marketing, and rent costs offset by on higher sales.
Section summaries
Management's Discussion and Analysis
Q1 FY2027 revenue rose 14% to $1.96B with 140bps gross margin expansion to 73.7%, driven by AUR growth across all segments.
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Consolidated net revenues grew 14.0% (13.4% ) to $1.96 billion, with double-digit growth in North America and Asia and mid-single-digit growth in Europe.
North America improved 240 and Asia improved 280 basis points, while Europe margin was flat as higher marketing spending offset gains.
Net was $339.3 million, up from $176.1 million a year earlier, driven by lower levels and higher ; the company repurchased $325.1 million in stock and paid $54.8 million in dividends during the quarter.
The company incurred $20.8 million in charges related to its , a multi-year systems redesign.
What changed
The prior quarter's watch item on : after turning negative for the full FY2026 year, free cash flow was $285.9 million in Q1 FY2027, a reversal driven by lower levels and higher .
The prior quarter's watch item on : the company lapped the record 72.3% from Q1 FY2026 and expanded margin further to 73.7%, as mid-teens AUR growth more than offset tariff and product cost pressures.
The prior quarter's watch item on North America : the maintained growth, contributing to the 14% consolidated revenue increase, though the filing did not break out a specific North America growth rate this quarter.
The prior quarter's watch item on : long-term debt remained essentially flat at $1.239 billion, as the $500 million Senior Notes issued in FY2026 continue to weigh on the balance sheet with no new debt activity this quarter.
What to watch
in Q2 FY2027 as the company laps the 68.0% from Q2 FY2026 and faces escalating tariff-driven product-cost pressure against the 73.7% reported this quarter.
North America in Q2 FY2027 to see if the growth rate holds as U.S. tariffs on imports from Vietnam, Cambodia, and China continue to flow through to consumer demand and pricing.
in Q2 FY2027 to see if the positive generation continues after the $285.9 million this quarter, or if the build that pressured FY2026 returns.
Europe after it was flat this quarter, to see if the higher marketing spending that offset gains continues to pressure profitability.
expanded 140 to 73.7%, primarily due to mid-teens growth and favorable channel/geographic mix, partially offset by tariff and product cost pressures.
SG&A expenses leveraged 20 to 55.0% of , as higher compensation, marketing, and rent costs were offset by on higher sales.
rose 25.2% to $342.4 million; North America margin improved 240bps, Asia improved 280bps, and Europe margin was flat as higher marketing offset gains.
Net was $339.3 million, up from $176.1 million, driven by lower levels and higher ; the company repurchased $325.1 million in stock and paid $54.8 million in dividends.
The company incurred $20.8 million in charges related to its and noted ongoing uncertainty from trade policy changes, tariffs, and geopolitical conflicts.
Quantitative and Qualitative Disclosures About Market Risk
For a discussion of the Company's exposure to market risk, see "Market Risk Management" presented in Part I, Item 2 — MD&A of this Form 10-Q and incorporated herein by reference.
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For a discussion of the Company's exposure to market risk, see "Market Risk Management" presented in Part I, Item 2 — MD&A of this Form 10-Q and incorporated herein by reference.
Reference is made to the information disclosed under Part I, Item 1A — "Risk Factors" in the Fiscal 2026 10-K, which contains a detailed discussion of certain risk factors that could materially adversely affect the Company's business, operating results, and/or financial conditio…
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Reference is made to the information disclosed under Part I, Item 1A — "Risk Factors" in the Fiscal 2026 10-K, which contains a detailed discussion of certain risk factors that could materially adversely affect the Company's business, operating results, and/or financial condition. There are no material changes to the risk factors previously disclosed, nor has the Company identified any previously undisclosed risks that could materially adversely affect the Company's business, operating results, and/or financial condition.