Overview
- Fiscal third-quarter revenue rose 12% to about $2.41 billion and adjusted EPS reached $6.22, topping estimates as operating margin expanded by 220 basis points.
- Ralph Lauren raised its full-year view to high-single to low-double digit revenue growth and now sees operating margin expanding 100 to 140 basis points.
- Management forecast fourth-quarter gross margin compression of roughly 80 to 120 basis points due to higher U.S. tariff costs and stepped-up brand investment.
- Shares fell about 6% to 7% in early trading after the margin guidance, even with the stronger results and upgraded outlook.
- Asia led growth with revenue up 22% and China over 30%, AUR increased 18% and DTC added a record 2.1 million new customers, while operating costs rose about 12% and the team flagged caution on North America and wholesale consolidation with minimal net exposure to Saks this year.