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

Ralph Lauren (NYSE:RL) posted its earnings results on Thursday. The textile maker reported $4.59 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.32 by $0.27, FiscalAI reports. The business had revenue of $1.96 billion for the quarter, compared to analyst estimates of $1.87 billion. Ralph Lauren had a net margin of 11.76% and a return on equity of 39.10%. Ralph Lauren’s revenue was up 13.9% compared to the same quarter last year. During the same period last year, the business posted $3.77 EPS.

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 Performance

Shares of NYSE:RL traded up $0.32 during trading on Friday, hitting $396.15. 709,432 shares of the stock were exchanged, compared to its average volume of 608,703. Ralph Lauren has a 1-year low of $282.80 and a 1-year high of $421.60. The company has a market capitalization of $23.58 billion, a price-to-earnings ratio of 24.96, a price-to-earnings-growth ratio of 1.55 and a beta of 1.35. The company’s fifty day simple moving average is $388.57 and its 200-day simple moving average is $368.39. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.57 and a current ratio of 2.04.

Ralph Lauren Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, July 10th. Stockholders of record on Friday, June 26th were issued a dividend of $1.00 per share. This represents a $4.00 annualized dividend and a dividend yield of 1.0%. The ex-dividend date of this dividend was Friday, June 26th. This is a boost from Ralph Lauren’s previous quarterly dividend of $0.91. Ralph Lauren’s payout ratio is 26.47%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. JPL Wealth Management LLC bought a new stake in Ralph Lauren in the 3rd quarter valued at $27,000. CYBER HORNET ETFs LLC bought a new position in shares of Ralph Lauren during the 2nd quarter worth about $28,000. MUFG Securities EMEA plc acquired a new stake in shares of Ralph Lauren during the 2nd quarter valued at about $32,000. Acumen Wealth Advisors LLC bought a new stake in Ralph Lauren in the fourth quarter valued at about $38,000. Finally, Geneos Wealth Management Inc. increased its stake in Ralph Lauren by 57.1% in the second quarter. Geneos Wealth Management Inc. now owns 143 shares of the textile maker’s stock valued at $39,000 after acquiring an additional 52 shares during the period. 67.91% of the stock is owned by institutional investors.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the stock. Evercore restated an “outperform” rating and set a $460.00 price target on shares of Ralph Lauren in a report on Friday. Zacks Research lowered Ralph Lauren from a “strong-buy” rating to a “hold” rating in a research note on Friday, April 24th. Citigroup lifted their price objective on Ralph Lauren from $400.00 to $455.00 and gave the stock a “buy” rating in a research note on Friday. UBS Group boosted their price objective on Ralph Lauren from $511.00 to $520.00 and gave the stock a “buy” rating in a research report on Friday. Finally, Barclays increased their target price on Ralph Lauren from $439.00 to $463.00 and gave the company an “overweight” rating in a research note on Friday. Sixteen research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat, Ralph Lauren presently has a consensus rating of “Moderate Buy” and a consensus price target of $445.67.

Key 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.