Ralph Lauren (NYSE:RL) Posts Quarterly Earnings Results, Beats Estimates By $0.38 EPS

Key Points

• Ralph Lauren reported quarterly EPS of $4.64, beating estimates by $0.38, while revenue rose 9.1% year over year to $2.19 billion and also exceeded forecasts.
• The company raised its FY2027 outlook, expecting revenue growth of 6%–7% and operating-margin expansion of 80–100 basis points.
• Asia was a major growth driver, but Europe remained weak, with retail comparable sales down 1%; management also expects growth to slow in the second half.

Ralph Lauren (NYSE:RL - Get Free Report) released its quarterly earnings results on Thursday. The textile maker reported $4.64 EPS for the quarter, topping the consensus estimate of $4.26 by $0.38, FiscalAI reports. Ralph Lauren had a return on equity of 39.10% and a net margin of 11.76%. The firm had revenue of $2.19 billion during the quarter, compared to analyst estimates of $2.13 billion. During the same period in the previous year, the company posted $3.79 EPS. The business's revenue for the quarter was up 9.1% compared to the same quarter last year.

Here are the key takeaways from Ralph Lauren's conference call:

• Q2 beat expectations, and full-year guidance rose again: Revenue grew 10%, adjusted gross margin expanded 220 basis points to 70.2%, and operating margin increased 140 basis points to 15.5%. Ralph Lauren now expects FY2027 revenue growth of 6%–7% and operating margin expansion of 80–100 basis points.
• Asia led growth: Regional revenue rose 28%, with retail comps up 24%; China sales increased more than 35%, while Japan and Korea also posted double-digit growth. Management raised its full-year Asia outlook to low-teens growth, while noting tougher second-half comparisons.
• Europe remains a pressure point: Store traffic and consumer confidence are weak, and Europe retail comps declined 1%. The company lowered its full-year regional outlook to low-single-digit growth and said its forecast does not depend on a near-term macro recovery.
• Growth is expected to slow in the second half: Q3 revenue growth is forecast at 3%–4%, partly reflecting wholesale timing shifts and strategic off-price reductions, while tougher comparisons weigh on Asia. The FY outlook also assumes U.S. tariffs return to reciprocal rates in the high teens in Q4.
• Brand investment and shareholder returns continue: The company added 1.7 million DTC customers in Q2 and plans to increase marketing investment, citing positive consumer metrics and returns. It repurchased about $500 million of shares year to date and ended the quarter with $1.8 billion in cash and short-term investments.

Ralph Lauren Stock Down 1.2%

Ralph Lauren stock traded down $4.68 during midday trading on Friday, reaching $377.10. The company's stock had a trading volume of 877,018 shares, compared to its average volume of 641,004. The company has a debt-to-equity ratio of 0.53, a current ratio of 2.04 and a quick ratio of 1.42. The stock has a market capitalization of $22.47 billion, a P/E ratio of 23.76, a PEG ratio of 1.86 and a beta of 1.30. The stock's 50-day simple moving average is $363.44 and its 200-day simple moving average is $367.66. Ralph Lauren has a 52-week low of $315.71 and a 52-week high of $421.60.

Ralph Lauren Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, October 9th. Shareholders of record on Friday, September 25th were paid a $1.00 dividend. The ex-dividend date was Friday, September 25th. This represents a $4.00 dividend on an annualized basis and a yield of 1.1%. Ralph Lauren's dividend payout ratio (DPR) is 25.20%.

Key Headlines Impacting Ralph Lauren

Here are the key news stories impacting Ralph Lauren this week:

• Positive Sentiment: For fiscal Q2 2027, revenue rose 9.1% year over year to $2.19 billion, while EPS of $4.64 topped analyst estimates of about $4.26. Strong Asia sales, consumer demand and improved margins supported the results. Article: RL Q2 Earnings Beat Estimates on Strong Asia Sales, Margins Rise
• Positive Sentiment: Ralph Lauren raised its fiscal 2027 outlook, projecting constant-currency revenue growth of 6% to 7% and operating-margin expansion of 80 to 100 basis points. Article: Ralph Lauren outlines fiscal 2027 growth outlook
• Positive Sentiment: Barclays raised its price target to $473 from $463 and maintained an Overweight rating, signaling a favorable analyst view. Article: Barclays stock recommendations
• Negative Sentiment: The stock’s pullback despite the beat and raised outlook suggests investors were concerned about weaker European sales and whether the forecast offered enough upside. Article: Ralph Lauren slips as weak European sales and FY27 outlook temper upbeat quarter

Analyst Upgrades and Downgrades

RL has been the subject of a number of recent research reports. Deutsche Bank Aktiengesellschaft set a $446.00 target price on shares of Ralph Lauren in a report on Friday, August 7th. Telsey Advisory Group raised their price target on shares of Ralph Lauren from $460.00 to $470.00 and gave the company an "outperform" rating in a report on Friday, August 7th. UBS Group lifted their price objective on shares of Ralph Lauren from $520.00 to $521.00 and gave the stock a "buy" rating in a research report on Wednesday, October 28th. Barclays boosted their price objective on shares of Ralph Lauren from $463.00 to $473.00 and gave the stock an "overweight" rating in a research note on Friday. Finally, Citigroup boosted their price objective on shares of Ralph Lauren from $400.00 to $455.00 and gave the stock a "buy" rating in a research note on Friday, August 7th. Fifteen analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, Ralph Lauren has a consensus rating of "Moderate Buy" and an average price target of $449.79.

About Ralph Lauren

Ralph Lauren Corporation NYSE: RL is a global luxury lifestyle company founded by Ralph Lauren in 1967. The company designs, markets and distributes apparel, accessories, home furnishings, fragrances and related products under a portfolio of brands that includes Ralph Lauren, Polo Ralph Lauren, Lauren Ralph Lauren, Ralph Lauren Purple Label and Double RL.

Ralph Lauren serves men, women and children through a combination of directly operated stores, digital commerce, wholesale distribution and licensing arrangements.

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