Ralph Lauren Corporation beat revenue expectations, posting a 12.2% year-over-year increase in total revenue to $2.41 billion in its fiscal Q3 ended Dec. 27, 2025.
During the quarter, the retailer and apparel brand saw growth in its direct and digital sales, both in the U.S. and abroad. Among the highlights were a 35% increase in digital commerce in Asia and an update on how the company is using its Ask Ralph assistant, which debuted in 2025.
Ralph Lauren ranks No. 64 in the Top 2000, Digital Commerce 360’s database of the largest North American e-retailers by their annual online sales.
Ralph Lauren digital sales in Q3
Digital sales grew for Ralph Lauren across all of its regions globally in Q3. Digital commerce in Asia grew the most, up 35% year over year, outpacing digital commerce gains in both North America (7%) and Europe (5%).
“We were also excited to launch our Ralph Lauren TikTok shop in the U.S. this quarter, becoming the first luxury fashion brand with an always-on presence on the platform,” said Patrice Louvet, president, CEO and director at Ralph Lauren, during an earnings call with investors. “The shop features a curated assortment, including core polo bestsellers and seasonal refreshes, tailored to this platform’s next-gen audience, including younger male shoppers.”
Louvet pointed to social media channels as a major strength as Ralph Lauren’s overall direct-to-consumer (DTC) business, which includes digital commerce, increased sales by “high-single-digits,” according to the company.
“In the third quarter, we added 2.1 million new consumers to our DTC businesses on top of last year’s 1.9 million record results, driven by digital and full-price store customers,” Louvet stated. “We were encouraged by the strong momentum across generations led by younger next-generation consumers, women and VICs [very important customers], and we increased our social media followers by high single digits to more than $68 million, led by Instagram, TikTok, Douyin and Line.”
Launching the Ask Ralph assistant
During Ralph Lauren’s earnings call, Louvet also shared results from the company’s artificial intelligence (AI)-powered assistant Ask Ralph, which it developed with Microsoft.
Louvet called “delivering advanced technology AI and analytics” a key pillar for Ralph Lauren’s business. In that context, he said “Ask Ralph, the AI-powered digital shopping assistant we launched in September, is providing us with powerful insights as AI drives accelerated shifts in consumer behavior.”
“Customers are moving beyond traditional search toward rich, natural-language product conversations, with styling and outfit discovery accounting for more than 50% of our total engagement,” he stated. “In addition to driving more personalized experiences for our customers, Ask Ralph is also becoming an important resource for high-quality first-party data.”
Ralph Lauren’s update on tariff-related expenses
Ultimately, Ralph Lauren raised the revenue and margin outlooks for its full 2026 fiscal year, citing “stronger-than-anticipated performance year to date.” As it did so, the company framed those expectations in the context of its current outlook on tariffs and geopolitical developments.
“Looking ahead, our outlook remains based on our best assessment of the current operating environment, geopolitical backdrop and macroeconomic trends,” said Justin Picicci, chief financial officer at Ralph Lauren, speaking to investors. “This includes tariffs and other inflationary pressures, supply-chain disruptions and foreign currency fluctuations, among other considerations.”
For the time being, Picicci said he expects Ralph Lauren to be able to mitigate the impact from tariffs, in part through “AUR [average unit retail] growth, favorable mix shift toward our full-price businesses and lower cotton costs.”
“We continue to expect tariffs to be a meaningful gross margin headwind through the first half of next fiscal year until we begin to lap the higher cost base,” he said. “Despite the increased near-term input costs, we still expect gross margin expansion in each year of our drive plan with more meaningful tariff mitigation over time.”
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