Ralph Lauren (NYSE:RL) Posts Quarterly Earnings Results, Beats Expectations By $0.42 EPS

Ralph Lauren (NYSE:RL) issued its quarterly earnings data on Thursday. The textile maker reported $6.22 EPS for the quarter, topping the consensus estimate of $5.80 by $0.42, FiscalAI reports. The company had revenue of $2.41 billion during the quarter, compared to analyst estimates 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 quarter in the previous year, the firm 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 Trading Down 4.2%

Shares of RL stock traded down $14.75 during trading hours on Thursday, reaching $339.95. The company’s stock had a trading volume of 1,775,914 shares, compared to its average volume of 576,155. 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 one year low of $176.61 and a one year high of $380.00. The stock has a market capitalization of $20.61 billion, a P/E ratio of 25.17, a P/E/G ratio of 1.55 and a beta of 1.49. The firm’s fifty day simple moving average is $362.01 and its 200 day simple moving average is $330.37.

Ralph Lauren Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, January 9th. Shareholders of record on Friday, December 26th were issued a dividend of $0.9125 per share. This represents a $3.65 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date of this dividend was Friday, December 26th. Ralph Lauren’s payout ratio is presently 26.98%.

Key Ralph Lauren News

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

Institutional Investors Weigh In On Ralph Lauren

Several large investors have recently bought and sold shares of RL. Invesco Ltd. increased its position in shares of Ralph Lauren by 9.8% in the third quarter. Invesco Ltd. now owns 1,048,755 shares of the textile maker’s stock worth $328,848,000 after acquiring an additional 93,753 shares in the last quarter. Orion Porfolio Solutions LLC grew its stake in Ralph Lauren by 8,937.8% during the second quarter. Orion Porfolio Solutions LLC now owns 963,340 shares of the textile maker’s stock worth $264,225,000 after buying an additional 952,681 shares in the last quarter. Qube Research & Technologies Ltd increased its stake in shares of Ralph Lauren by 11.7% in the 3rd quarter. Qube Research & Technologies Ltd now owns 941,832 shares of the textile maker’s stock valued at $295,321,000 after acquiring an additional 98,511 shares in the last quarter. Ameriprise Financial Inc. lifted its holdings in shares of Ralph Lauren by 5.0% in the second quarter. Ameriprise Financial Inc. now owns 756,203 shares of the textile maker’s stock worth $207,417,000 after buying an additional 36,328 shares in the last quarter. Finally, Boston Partners raised its position in shares of Ralph Lauren by 2.1% in the 3rd quarter. Boston Partners now owns 715,733 shares of the textile maker’s stock worth $224,455,000 after acquiring an additional 14,953 shares in the last quarter. Hedge funds and other institutional investors own 67.91% of the company’s stock.

Analysts Set New Price Targets

RL has been the subject of several recent analyst reports. Evercore ISI raised their price objective on shares of Ralph Lauren from $385.00 to $415.00 and gave the company an “outperform” rating in a research note on Monday. UBS Group increased their price objective on Ralph Lauren from $473.00 to $474.00 and gave the stock a “buy” rating in a research report on Wednesday, January 28th. Zacks Research lowered shares of Ralph Lauren from a “strong-buy” rating to a “hold” rating in a research report on Monday, December 8th. Barclays restated an “overweight” rating and set a $409.00 price target on shares of Ralph Lauren in a report on Tuesday, January 6th. Finally, Jefferies Financial Group initiated coverage on Ralph Lauren in a research note on Wednesday, January 14th. They issued a “buy” rating and a $425.00 target price on the stock. Fifteen equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $377.71.

About Ralph Lauren

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.