Ralph Lauren backs FY26 revenue view up low- to mid-single digits

The company is reiterating its FY26 guidance that was recently provided on its earnings call on August 7 and introducing its three-year financial outlook. Over the next three years, from a base of FY25 through FY28, the company expects revenue to increase at a compound annual growth rate of mid-single digits in constant currency. Operating margin is expected to expand approximately 100 to 150 basis points by FY28 in constant currency, driven by a combination of gross margin expansion and operating expense leverage balanced with continued investments in the company’s long-term strategic priorities. In addition, capital expenditures are expected to represent approximately 4% to 5% of revenue annually through FY28. The company expects to continue returning excess free cash flow to shareholders over the next three years, with plans to return at least $2B on a cumulative basis through FY28 through its regular quarterly cash dividends and share repurchases, subject to the authorization of its board of directors and overall business and market conditions.