Ralph Lauren (NYSE:RL) Announces Earnings Results

Ralph Lauren (NYSE:RL) released its quarterly earnings data on Thursday. The textile maker reported $4.64 EPS for the quarter, beating analysts’ consensus estimates of $4.26 by $0.38, FiscalAI reports. The company had revenue of $2.19 billion during the quarter, compared to the consensus estimate of $2.13 billion. Ralph Lauren had a net margin of 11.76% and a return on equity of 39.10%. Ralph Lauren’s quarterly revenue was up 9.1% on a year-over-year basis. During the same quarter in the prior year, the firm earned $3.79 EPS.

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 Trading Down 1.2%

NYSE:RL traded down $4.68 on Friday, reaching $377.10. The company’s stock had a trading volume of 877,018 shares, compared to its average volume of 497,174. Ralph Lauren has a 12-month low of $315.71 and a 12-month high of $421.60. The stock has a 50 day moving average price of $363.95 and a 200 day moving average price of $367.75. The firm has a market cap of $22.47 billion, a price-to-earnings ratio of 21.65, a price-to-earnings-growth ratio of 1.79 and a beta of 1.30. The company has a quick ratio of 1.42, a current ratio of 2.04 and a debt-to-equity ratio of 0.53.

Ralph Lauren Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, October 9th. Shareholders of record on Friday, September 25th were given 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 payout ratio is currently 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

Analysts Set New Price Targets

A number of equities analysts have weighed in on the company. Wells Fargo & Company boosted their price objective on Ralph Lauren from $415.00 to $425.00 and gave the stock an “overweight” rating in a research note on Tuesday, July 21st. JPMorgan Chase & Co. raised their target price on Ralph Lauren from $434.00 to $452.00 and gave the stock an “overweight” rating in a research note on Tuesday, August 4th. Wall Street Zen lowered Ralph Lauren from a “buy” rating to a “hold” rating in a report on Saturday, September 5th. Evercore reissued an “outperform” rating and set a $460.00 price target on shares of Ralph Lauren in a research report on Friday, August 7th. Finally, Raymond James Financial reissued an “outperform” rating and issued a $425.00 price objective on shares of Ralph Lauren in a report on Friday, August 7th. Fifteen research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price 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.