Ralph Lauren Corporation (NYSE:RL) shares are trading higher on Thursday after the company delivered stronger-than-expected fourth-quarter results.

Adjusted earnings per share of $2.80 beat the analyst consensus estimate of $2.54. Quarterly sales of $1.98 billion outpaced the Street view of $1.85 billion.

Revenue rose 17% year over year (Y/Y), or 12% Y/Y in constant currency. Global direct-to-consumer comparable sales grew 17% Y/Y led by positive retail comps across regions and channels, along with mid-teen average unit retail growth

Adjusted gross margin stood at 69.7%, 110 basis points above the prior year. This is driven by favorable geographic, channel, and product mix, AUR growth, and lower cotton costs.

Adjusted operating income was $218 million, and operating margin was 11.0%, 70 basis points above the prior year period.

The company ended the fiscal year with more than $2 billion in cash and short-term investments.

Revenue by Geographies/Business

By region, growth was led by Asia, where sales rose 31% Y/Y reported and 28% Y/Y in constant currency, supported by strong performance in China and robust Lunar New Year demand.

Europe revenue increased 18% Y/Y reported, or 6% Y/Y in constant currency, driven by balanced growth across both retail and wholesale channels.

In North America, sales climbed 8% Y/Y, with double-digit direct-to-consumer comparable sales and flat wholesale revenue, as stronger-than-expected full-price demand offset planned pullbacks in lower-tier wholesale channels.

Dividend Boost

The company's Board of Directors approved a 10% increase in its quarterly cash dividend on common stock, raising it to $1.00 per share, or $4.00 annually.

The dividend is payable on July 10, 2026, to shareholders of record as of June 26, 2026.

Outlook

For fiscal 2027, Ralph Lauren expects revenue to grow at a mid-single-digit rate in constant currency on a comparable 52-week basis, with projected growth centered around 4% to 5%. 

For the year, the company expects operating margin to expand by around 40–60 basis points in constant currency, supported by modest gross margin gains and operating expense leverage.

Margin improvement is expected to be stronger in the first half of the year, aided by the timing of marketing initiatives.

For the year, the company projects capital expenditures at about 4%–5% of revenue.

For the first quarter, the company expects revenue to rise at a mid- to high-single-digit rate in constant currency. Ralph Lauren sees operating margin expansion of roughly 80–120 basis points, primarily driven by gross margin improvement.

RL Price Action: Ralph Lauren shares were up 10.29% at $363.11 at the time of publication on Thursday, according to Benzinga Pro data.

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