Ralph Lauren (NYSE:RL) Issues Quarterly Earnings Results

Ralph Lauren (NYSE:RL) issued its quarterly earnings results on Thursday. The textile maker reported $6.22 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $5.80 by $0.42, FiscalAI reports. The company had revenue of $2.41 billion during the quarter, compared to the consensus estimate of $2.30 billion. Ralph Lauren had a return on equity of 36.18% and a net margin of 11.28%.Ralph Lauren’s revenue was up 12.2% on a year-over-year basis. During the same period last year, the company earned $4.82 earnings per share.

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

• Ralph Lauren beat expectations in Q3 — total company revenue grew ~10% (constant currency) and adjusted operating margin expanded ~200 bps to 20.7%, and management raised FY26 revenue guidance to a high single- to low double-digit increase with ~100–140 bps of expected operating margin expansion.
• Strong full‑price demand and reduced discounting drove improved quality of sales, producing an outsized 18% AUR increase and a ~140 bp expansion in adjusted gross margin to 69.8%.
• Brand momentum translated to customer growth — the company added 2.1 million new DTC consumers this quarter, increased social reach to >68 million followers, and saw Asia lead performance (China >30%), including launch of a U.S. TikTok shop.
• U.S. tariffs are flowing through to cost of goods sold and are expected to pressure margins in Q4 (company expects Q4 operating margin to contract ~80–120 bps) with tariffs remaining a meaningful headwind into the first half of FY27.
• Management is deliberately shifting the mix toward full‑price DTC and away from off‑price wholesale while investing in AI/digital (Ask Ralph), marketing, and ~4–5% CapEx — strategic moves that should raise long‑term brand value but create near‑term timing noise (wholesale receipt shifts and outlet pullbacks).

Ralph Lauren Stock Down 4.2%

NYSE RL traded down $14.86 on Thursday, reaching $339.84. The stock had a trading volume of 1,643,990 shares, compared to its average volume of 572,732. The company has a current ratio of 2.04, a quick ratio of 1.35 and a debt-to-equity ratio of 0.57. Ralph Lauren has a 1 year low of $176.61 and a 1 year high of $380.00. The business has a 50 day moving average price of $362.01 and a 200 day moving average price of $330.37. The company has a market capitalization of $20.61 billion, a price-to-earnings ratio of 25.02, a P/E/G ratio of 1.55 and a beta of 1.49.

Ralph Lauren Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, January 9th. Investors of record on Friday, December 26th were issued a dividend of $0.9125 per share. This represents a $3.65 annualized dividend and a dividend yield of 1.1%. The ex-dividend date was Friday, December 26th. Ralph Lauren’s dividend payout ratio (DPR) is currently 26.98%.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in Ralph Lauren by 5.3% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 3,432 shares of the textile maker’s stock valued at $758,000 after acquiring an additional 174 shares in the last quarter. Empowered Funds LLC boosted its stake in shares of Ralph Lauren by 0.9% in the 1st quarter. Empowered Funds LLC now owns 12,334 shares of the textile maker’s stock valued at $2,723,000 after purchasing an additional 114 shares in the last quarter. Woodline Partners LP grew its holdings in shares of Ralph Lauren by 39.5% during the 1st quarter. Woodline Partners LP now owns 3,369 shares of the textile maker’s stock valued at $744,000 after purchasing an additional 954 shares during the last quarter. Focus Partners Wealth increased its position in Ralph Lauren by 29.5% during the 1st quarter. Focus Partners Wealth now owns 3,812 shares of the textile maker’s stock worth $841,000 after purchasing an additional 869 shares in the last quarter. Finally, Sivia Capital Partners LLC acquired a new stake in Ralph Lauren in the second quarter valued at approximately $386,000. Institutional investors own 67.91% of the company’s stock.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on RL shares. Argus upped their target price on Ralph Lauren from $360.00 to $400.00 and gave the stock a “buy” rating in a report on Thursday, January 15th. Weiss Ratings reiterated a “buy (b)” rating on shares of Ralph Lauren in a report on Thursday, January 22nd. Deutsche Bank Aktiengesellschaft set a $422.00 target price on Ralph Lauren in a research note on Thursday, January 8th. Zacks Research lowered shares of Ralph Lauren from a “strong-buy” rating to a “hold” rating in a research note on Monday, December 8th. Finally, Guggenheim assumed coverage on Ralph Lauren in a research report on Tuesday, December 9th. They set a “neutral” rating on the stock. Fifteen research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Ralph Lauren currently has a consensus rating of “Moderate Buy” and a consensus price target of $377.71.

Ralph Lauren News Roundup

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

• Positive Sentiment: Q3 results beat expectations — EPS $6.22 vs. $5.80 est.; revenue $2.41B vs. $2.30B est.; revenue +12.2% year-over-year. Strong holiday sales helped lift margins this quarter. RL Beats Q3 Earnings & Revenue Estimates on Strong Holiday Result
• Positive Sentiment: Management raised the full-year fiscal 2026 outlook — now expects high-single- to low-double-digit constant-currency revenue growth and operating-margin expansion of roughly 100–140 basis points. Ralph Lauren Q3 earnings beat, shares slide on tariff-driven margin outlook
• Positive Sentiment: Demand remained resilient among affluent shoppers, with Polo and leather handbags highlighted as strong categories during the holiday season. Ralph Lauren posts third-quarter sales beat on steady demand
• Neutral Sentiment: Sell-side support: Evercore ISI reiterated a buy stance, which may support longer-term investor sentiment. Evercore ISI Remains a Buy on Ralph Lauren (RL)
• Neutral Sentiment: Full earnings/management detail available in the Q3 earnings call transcript — useful for investors wanting color on inventory, pricing, and cadence into Q4. Ralph Lauren Corporation (RL) Q3 2026 Earnings Call Transcript
• Negative Sentiment: Guidance caveat — management warned of tariff-driven margin pressure in Q4, which triggered the intraday share decline despite the beat and higher full-year guidance. This near-term cost risk is the primary reason for investor selling. Ralph Lauren Q3 earnings beat, shares slide on tariff-driven margin outlook
• Negative Sentiment: Macro noise: a slight uptick in initial jobless claims and a busy earnings morning can amplify volatility and weigh on retail stocks in the short term. Jobless Claims Pop Up a Bit, Major Morning for Earnings

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.