Ralph Lauren Raises Full-Year Outlook After Q2 Profit and Revenue Beat Internal Goals

Apparel maker Ralph Lauren raised its full-year guidance following a second-quarter earnings report on November 5, 2026, where both revenue and profit surpassed internal projections. The company successfully expanded its profit margins by increasing full-price sales and growing its luxury footprint globally, helping offset softer store traffic in regions like Europe.

A primary driver for the brand is Asia, where direct-to-consumer sales surged. Specifically, revenue in China climbed by more than 35% as the company broadened its retail footprint in major urban centers. Alongside this geographic growth, the firm increased its Average Unit Retail by 9% during the quarter, lifting its adjusted gross margin to 70%.

To safeguard its upscale market position, leadership has been scaling back exposure to off-price channels and exiting lower-tier department stores. Simultaneously, marketing spending rose to 8.6% of sales to support major brand campaigns, with executives planning to maintain robust reinvestment rates going forward.

What to watch next: Monitor whether consumer demand in Asia remains strong enough to offset ongoing retail traffic challenges across European markets.