Ralph Lauren Corporation (0KTS.L) Q3 2025 Earnings Report

Ralph Lauren delivered a robust QQ3 2025 quarter with meaningful top-line growth and a favorable margin trajectory. Revenue reached USD 2.1435 billion, up 36.7% year-over-year and 24.2% quarter-over-quarter, supported by a favorable product mix and price realization that contributed to a gross margin of approximately 68.4%. Operating income stood at USD 389.7 million, yielding an operating margin of 18.18%, while net income was USD 297.4 million and diluted earnings per share (EPS) USD 4.66. The company generated substantial operating cash flow of USD 738.4 million and free cash flow of USD 677.2 million, underpinning a strong liquidity position and disciplined capital allocation (USD 74.4 million in share repurchases and USD 51.2 million in dividends). Balance sheet health remains solid: total assets USD 7.081 billion, total liabilities USD 4.542 billion, and stockholders’ equity USD 2.539 billion. Cash and cash equivalents totaled USD 1.940 billion, with total debt USD 2.684 billion and net debt around USD 0.744 billion. Key liquidity metrics show a current ratio of 1.76 and a quick ratio of 1.31, underscoring financial flexibility to fund ongoing investments and potential buybacks. Forward-looking commentary is limited by the absence of formal guidance in the provided data. Nonetheless, the QQ3 momentum suggests continued revenue expansion in the near term, with management likely focusing on direct-to-consumer growth, product assortment optimization, and disciplined working-capital management. Investors should monitor consumer demand dynamics, currency exposures, and mix between wholesale and direct-to-consumer channels, as well as ongoing investments to sustain growth and profitability.