Ralph Lauren Corporation stock research
FY2026 Q3
Ralph Lauren (RL) Gross Margin — Quarter Ended Dec 27, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue rose at a slower pace. Gross margin improved versus both periods, reflecting a stronger relationship between revenue growth and cost control.
Gross margin takeaway
Quarter ended Dec 27, 2025 · FY2026 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue rose at a slower pace. Gross margin improved versus both periods, reflecting a stronger relationship between revenue growth and cost control.
- The gross margin improvement was driven by revenue growing faster than cost of revenue, as gross profit expanded more than proportionally. This indicates that the company generated higher profit per dollar of revenue.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, and gross margin improved. Versus the same quarter one year earlier, all three metrics were also higher, with gross margin showing a similar upward trend.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
69.9%
Gross profit
$1.7B
Revenue
$2.4B
Cost of revenue
$724.3M
Quarter-over-quarter change
+1.9 pts
Year-over-year change
+1.5 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 29, 2025 | $1.7B | $1.2B | $532.0M | 68.7% |
| Jun 28, 2025 | $1.7B | $1.2B | $476.8M | 72.3% |
| Sep 27, 2025 | $2.0B | $1.4B | $644.3M | 68.0% |
| Dec 27, 2025 | $2.4B | $1.7B | $724.3M | 69.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 27, 2025
+1.9 pts
Year-over-year change
Dec 28, 2024
+1.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement was driven by revenue growing faster than cost of revenue, as gross profit expanded more than proportionally. This indicates that the company generated higher profit per dollar of revenue.
Compared to the immediately preceding quarter, revenue and gross profit were higher, and gross margin improved. Versus the same quarter one year earlier, all three metrics were also higher, with gross margin showing a similar upward trend.
Monitor the trend in cost of revenue relative to revenue, as its slower growth contributed to margin expansion.