Ralph Lauren Corporation (0KTS.L) Q4 2025 Earnings Report

Ralph Lauren reported a solid set of fundamentals in QQ4 2025 with revenue of $1.6973 billion, up 8.25% year-over-year but down 20.82% sequentially from the prior quarter. The quarter delivered a robust gross margin of 68.66% and an operating margin of 9.13%, translating to an operating income of $155.0 million and net income of $129.0 million (EPS of $2.07, diluted $2.03). Despite the quarter-to-quarter revenue pullback, the company produced meaningful earnings growth vs. a year ago and maintained disciplined expense management, contributing to EBITDA of $230.7 million and free cash flow of $42.3 million. Cash generation remained healthy, with cash and cash equivalents of roughly $1.922 billion and total liquidity supported by a net debt position of about $0.725 billion (debt of $2.6475 billion against cash/liquids of ~$2.083 billion). The balance sheet remains solid, with a current ratio of 1.78 and a debt-to-capitalization of ~0.506x, providing flexibility to fund DTC investments and selective openings or refurbishments while navigating seasonality in luxury apparel.

Near-term performance reflects seasonality and a difficult QoQ comparison base, rather than a fundamental deterioration in brand momentum. Management commentary (when available) typically emphasized brand strength, omni-channel initiatives, and discipline on cost structure. Absent explicit full-year guidance in the data provided, the outlook hinges on continued demand for premium apparel, sustained margin discipline, and a measured expansion of direct-to-consumer and digital channels. Investors should monitor quarterly regional revenue progression, gross margin stability, inventory levels (days of inventory outstanding), and any updated guidance from management on 2026 priorities and expectations.