Ralph Lauren Corporation (0KTS.L) Q2 2025 Earnings Report

Ralph Lauren reported QQ2 2025 revenue of $1.726 billion, down 10.8% year-over-year and up 14.1% quarter-over-quarter. Gross profit was $1.156 billion with a gross margin of 66.96%, while operating income reached $179 million and net income was $148 million, translating to diluted EPS of $2.31 and basic EPS of $2.36. The quarter featured solid operating efficiency in an environment of softer year-on-year demand, but SG&A remained a meaningful proportion of revenue at roughly 56% of sales, contributing to an operating margin of 10.4% and net margin of 8.57%. Free cash flow was $55.5 million on $1.726 billion of revenue, underscoring cash-generation capability even as the company continued to allocate capital to share repurchases ($129 million) and dividends ($51.4 million). Net debt stood at approximately $1.313 billion against total liquidity of about $2.717 billion (cash plus cash equivalents and short-term investments), leaving a measured but elevated leverage profile (net debt to EBITDA around 5.15x, based on reported EBITDA of $255.4 million). Management commentary is not included in the dataset; however, the results imply ongoing focus on direct-to-consumer (DTC) strength, brand discipline, and inventory management as drivers of the near-term path to improved profitability and cash flow. Considering valuation indicators (P/E ~20.8x, P/S ~7.1x, P/B ~5.0x) and a modest dividend yield (~0.42%), the stock presents a balanced-risk, balanced-reward profile tuned to brand desirability and expense discipline in a challenging consumer environment.