Ralph Lauren reported a solid start to its QQ1 2026 with revenue of $1.719 billion, up 13.7% year over year. The quarter delivered a robust gross margin of 68.8% and an operating margin of 16.8%, supported by a favorable mix and pricing power within its premium apparel portfolio. EBITDA reached $347.7 million, equating to an EBITDA margin of approximately 20.2%, while net income was $220.4 million and diluted earnings per share were $3.526 on 62.5 million weighted shares, or $3.613 basic EPS. The results reflect meaningful top-line momentum and a favorable cost structure, underscoring the strength of the Ralph Lauren brand and its direct-to-consumer (DTC) presence in a resilient luxury market.
The company generated $176.1 million of operating cash flow in the quarter, but free cash flow was negative by about $11.2 million, largely due to capital expenditures and a deliberate capital allocation program. Liquidity remains solid with $2.090 billion of cash and cash equivalents at period end and total debt of $3.239 billion, resulting in a net debt position of about $1.148 billion. Management has pursued an active capital allocation strategy, evidenced by substantial share repurchases (~$323.3 million) and a meaningful debt repayment (~$492.2 million) during the period, complemented by a modest dividend payout (~$50.7 million).
Overall, the QQ1 2026 results point to a disciplined growth trajectory: solid top-line expansion, healthy profitability, and a balanced approach to liquidity and capital deployment. The near-term outlook will hinge on consumer demand, DTC execution, mix effects, and any currency headwinds, but the balance sheet and cash-generation profile provide ample flexibility to sustain investments in brand, e-commerce, and footprint optimization.