Ralph Lauren (NYSE:RL) Announces Earnings Results

Ralph Lauren (NYSE:RL) released its quarterly earnings data on Thursday. The textile maker reported $4.59 earnings per share (EPS) for the quarter, beating 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 analyst estimates of $1.87 billion. During the same quarter in the prior year, the company earned $3.77 earnings per share. 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 Performance

NYSE RL traded up $0.32 on Friday, reaching $396.15. The stock had a trading volume of 709,432 shares, compared to its average volume of 608,703. The company has a debt-to-equity ratio of 0.53, a current ratio of 2.04 and a quick ratio of 1.57. The company has a market cap of $23.58 billion, a P/E ratio of 22.73, a price-to-earnings-growth ratio of 1.55 and a beta of 1.35. The firm has a fifty day moving average of $388.57 and a two-hundred day moving average of $368.39. Ralph Lauren has a 1-year low of $282.80 and a 1-year high of $421.60.

Ralph Lauren Increases Dividend

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

Analyst Ratings Changes

RL has been the topic of a number of recent analyst reports. Bank of America boosted their target price on Ralph Lauren from $400.00 to $450.00 and gave the stock a “buy” rating in a report on Thursday, April 16th. Deutsche Bank Aktiengesellschaft set a $446.00 price target on Ralph Lauren in a research note on Friday. BTIG Research lifted their price objective on shares of Ralph Lauren from $450.00 to $460.00 and gave the stock a “buy” rating in a research report on Friday. Wall Street Zen upgraded shares of Ralph Lauren from a “hold” rating to a “buy” rating in a report on Saturday, July 4th. Finally, Needham & Company LLC increased their price objective on shares of Ralph Lauren from $405.00 to $450.00 and gave the company a “buy” rating in a research report on Thursday. Sixteen analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $445.67.

Hedge Funds Weigh In On Ralph Lauren

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

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.