Ralph Lauren (NYSE:RL) Announces Earnings Results, Beats Estimates By $0.27 EPS

Key Points

• Ralph Lauren beat quarterly expectations: EPS was $4.59 versus the $4.32 consensus, while revenue rose 13.9% year over year to $1.96 billion, exceeding the $1.87 billion estimate.
• Management raised its fiscal 2027 outlook to 5%–6% constant-currency revenue growth and 60–80 basis points of operating-margin expansion, supported by stronger full-price selling and robust demand in Asia, especially China.
• Analyst sentiment improved following the results, with several firms raising price targets; however, management warned of pressure in Europe, moderating North American wholesale growth, and higher tariff-related costs.

Ralph Lauren (NYSE:RL - Get Free Report) posted its quarterly earnings data on Thursday. The textile maker reported $4.59 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.32 by $0.27, FiscalAI reports. Ralph Lauren had a return on equity of 39.10% and a net margin of 11.76%.The firm had revenue of $1.96 billion for the quarter, compared to the consensus estimate of $1.87 billion. During the same quarter in the previous year, the company earned $3.77 EPS. The business's revenue for the quarter was up 13.9% compared to the same quarter last year.

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

• First-quarter results exceeded expectations, with constant-currency revenue up 13%, retail comparable sales up 12%, and adjusted operating margin expanding 150 basis points to 18.5%. Growth was broad-based across DTC and wholesale, with stronger full-price selling and reduced promotions improving sales quality.
• Ralph Lauren raised its fiscal 2027 outlook, now expecting constant-currency revenue growth of 5%–6% versus 4%–5% previously, and operating-margin expansion of approximately 60–80 basis points. Asia’s full-year revenue outlook was also increased to high-single- to low-double-digit growth.
• Asia remained the strongest region, growing 25% in the quarter, including more than 40% growth in China and double-digit gains in Japan and Korea. Management cited strong brand engagement, localized activations, and expansion in key city clusters, while expecting China to grow around the mid-teens for the full year.
• The company added 1.5 million new DTC customers and reported more than 20% growth in women’s apparel, outerwear, and handbags, supported by ongoing brand activations and an 8% marketing-investment target. Management said marketing could rise further over time if new initiatives generate attractive returns.
• Management remains cautious on Europe because of pressured traffic, weaker consumer sentiment, elevated energy costs, Middle East-related tourism disruption, and difficult comparisons. North American wholesale growth is also expected to moderate in the second half as Ralph Lauren accelerates exits from off-price and lower-tier distribution, while higher tariffs are expected to pressure costs later in the fiscal year.

Ralph Lauren Stock Up 0.1%

RL stock traded up $0.32 during trading hours on Friday, hitting $396.15. The company's stock had a trading volume of 709,432 shares, compared to its average volume of 608,703. The company has a quick ratio of 1.57, a current ratio of 2.04 and a debt-to-equity ratio of 0.53. The company has a market capitalization of $23.58 billion, a PE ratio of 24.96, a price-to-earnings-growth ratio of 1.55 and a beta of 1.35. Ralph Lauren has a 12 month low of $282.80 and a 12 month high of $421.60. The stock has a 50 day moving average price of $388.57 and a two-hundred day moving average price of $368.39.

Ralph Lauren Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, July 10th. Shareholders of record on Friday, June 26th were paid a $1.00 dividend. This represents a $4.00 dividend on an annualized basis and a yield of 1.0%. This is a boost from Ralph Lauren's previous quarterly dividend of $0.91. The ex-dividend date was Friday, June 26th. Ralph Lauren's dividend payout ratio is presently 26.47%.

Wall Street Analyst Weigh In

RL has been the topic of several analyst reports. Telsey Advisory Group lifted their target price on shares of Ralph Lauren from $460.00 to $470.00 and gave the stock an "outperform" rating in a research report on Friday. Citigroup raised 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. Barclays boosted their target price on shares of Ralph Lauren from $439.00 to $463.00 and gave the company an "overweight" rating in a research note on Friday. Zacks Research lowered Ralph Lauren from a "strong-buy" rating to a "hold" rating in a report on Friday, April 24th. Finally, Bank of America lifted their price target on Ralph Lauren from $400.00 to $450.00 and gave the company a "buy" rating in a report on Thursday, April 16th. Sixteen analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, Ralph Lauren presently has an average rating of "Moderate Buy" and a consensus target price of $445.67.

Institutional Investors Weigh In On Ralph Lauren

Several institutional investors and hedge funds have recently modified their holdings of the business. Compound Planning Inc. increased its holdings in shares of Ralph Lauren by 8.2% during the 4th quarter. Compound Planning Inc. now owns 1,825 shares of the textile maker's stock valued at $645,000 after acquiring an additional 139 shares during the last quarter. Invesco Ltd. lifted its holdings in Ralph Lauren by 26.2% in the 4th quarter. Invesco Ltd. now owns 1,324,018 shares of the textile maker's stock worth $468,186,000 after purchasing an additional 275,263 shares during the last quarter. Axxcess Wealth Management LLC bought a new stake in Ralph Lauren during the fourth quarter worth approximately $1,557,000. Corient Private Wealth LLC boosted its position in Ralph Lauren by 3,098.2% during the fourth quarter. Corient Private Wealth LLC now owns 244,565 shares of the textile maker's stock worth $86,481,000 after purchasing an additional 236,918 shares during the period. Finally, Mercer Global Advisors Inc. ADV grew its holdings in Ralph Lauren by 47.8% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 14,828 shares of the textile maker's stock valued at $5,243,000 after purchasing an additional 4,797 shares during the last quarter. Institutional investors and hedge funds own 67.91% of the company's stock.

More Ralph Lauren News

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

• Positive Sentiment: Ralph Lauren reported quarterly EPS of $4.59, exceeding the $4.32 consensus estimate, while revenue rose 13.9% year over year to $1.96 billion, ahead of the $1.87 billion forecast. The beat was supported by broad global demand, affluent consumers and stronger margins. Ralph Lauren fiscal first-quarter earnings report
• Positive Sentiment: Management raised its fiscal 2027 revenue-growth outlook to 5%-6% and expects operating-margin expansion of 60-80 basis points. Higher full-price selling and continued demand contributed to the improved outlook. Ralph Lauren raises fiscal 2027 outlook
• Positive Sentiment: Analysts raised their price targets after the results. Telsey Advisory Group increased its target to $470 and maintained an “outperform” rating, while Needham raised its target to $450 and maintained a “buy” rating. These targets imply further upside from the referenced trading level. Telsey raises Ralph Lauren price target
• Positive Sentiment: CNBC commentator Jim Cramer highlighted Ralph Lauren’s long-term brand elevation, core-business expansion and global-market strategy, reinforcing the view that the company is one of retail’s stronger operators. Cramer discusses Ralph Lauren
• Neutral Sentiment: Institutional positioning was mixed, with 371 investors adding shares and 385 reducing positions in the latest quarter. The median analyst price target was reported at $440, indicating generally favorable sentiment but also meaningful differences in expectations.
• Negative Sentiment: Recent insider activity showed executives selling shares, including CEO Patrice Louvet, with no reported open-market purchases over the past six months. While such sales may be routine, they could temper enthusiasm at elevated valuation levels.

Ralph Lauren Company Profile

Ralph Lauren Corporation NYSE: RL is a global designer, marketer and distributor of premium lifestyle products under the Ralph Lauren name and a portfolio of related brands. The company, founded by Ralph Lauren in 1967 and headquartered in New York City, has grown from a single line of men's neckties into a global lifestyle business that spans apparel, accessories and home goods.

Ralph Lauren's product assortment includes menswear, womenswear and childrenswear along with footwear, leather goods, eyewear, fragrances and home furnishings.

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