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Ralph Lauren (RL) Stock Falls 4.3% Despite Earnings Beat
Ralph Lauren shares fell 4.3% on November 5, 2026 even after second quarter revenue rose 9% and the company raised its full-year fiscal 2027 outlook.
Ralph Lauren (NYSE: RL) shares were down 4.31% in morning trading on November 5, 2026, after the company reported second quarter fiscal 2027 results ahead of expectations. Ralph Lauren also raised its guidance (its own forecast) and now expects constant currency revenue, meaning growth with exchange-rate swings stripped out, to rise about 6% to 7% this fiscal year, up from 5% to 6%.
What Ralph Lauren reported
| Metric | This period | A year earlier | Change |
|---|---|---|---|
| Revenue | $2.2 billion | n/a | +9% (+10% constant currency) |
| Earnings per share (reported) | $4.87 | $3.32 | +47% |
| Adjusted earnings per share | $4.64 | $3.79 | +22% |
| Net income | $297 million | $207 million | +43% |
| Cash and short-term investments | $1.8 billion | $1.6 billion | +$0.2 billion |
Adjusted earnings per share excludes one-off items such as restructuring. The company now expects full-year operating margin to widen by about 80 to 100 basis points (0.8 to 1.0 percentage points) in constant currency, mainly from gross margin. Reported gross margin hit 74.2%, up 620 basis points, largely because of tariff refunds received in the quarter; on an adjusted basis it was 70.5%, up 250 basis points.
Asia led the regions, with revenue up 28% to $571 million and China up more than 35%. Europe revenue grew just 1% to $696 million, and comparable store sales there (sales at stores open at least a year) fell 1%.
Why the stock fell 4.3%
The drop was close to twice a typical day's swing for the stock. Two details in the release stand out against the headline beat. The third quarter revenue outlook is centered around 3% to 4% in constant currency, well below the 10% just delivered, and includes about 1 point of drag from wholesale timing shifts and reduced off-price sales. North America wholesale growth of 8% also included about 4 points from shipments pulled forward from the second half.
What to watch next
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Third quarter results against the 3% to 4% revenue and 50 to 70 basis point margin outlook
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Europe brick-and-mortar comparable sales, which fell 4% this quarter
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Whether Asia and China keep growing as new stores open
FAQ
Is Ralph Lauren buying back shares?
It repurchased about $250 million of stock in the second quarter, bringing the fiscal year-to-date total to $500 million and completing its buyback plans for fiscal 2027.
Does fiscal 2027 have an extra week for Ralph Lauren?
Yes. Fiscal 2027 is a 53-week year, and the extra week is expected to add about 1 point to revenue growth and slightly benefit operating margin.
Sources
This article is for information only and is not investment advice.