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

Ralph Lauren (NYSE:RL) released its quarterly earnings data on Thursday. The textile maker reported $4.59 EPS for the quarter, topping the consensus estimate of $4.32 by $0.27, FiscalAI reports. The company had revenue of $1.96 billion during the quarter, compared to the consensus estimate of $1.87 billion. Ralph Lauren had a return on equity of 39.10% and a net margin of 11.76%.Ralph Lauren’s revenue for the quarter was up 13.9% on a year-over-year basis. During the same period last year, the company earned $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

NYSE RL traded up $0.32 on Friday, reaching $396.15. 709,432 shares of the stock were exchanged, compared to its average volume of 608,703. The company has a current ratio of 2.04, a quick ratio of 1.57 and a debt-to-equity ratio of 0.53. Ralph Lauren has a one year low of $282.80 and a one year high of $421.60. The firm has a market capitalization of $23.58 billion, a PE ratio of 24.96, a PEG ratio of 1.55 and a beta of 1.35. The company’s 50-day simple moving average is $388.57 and its two-hundred day simple moving average is $368.39.

Ralph Lauren Increases Dividend

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

Hedge Funds Weigh In On Ralph Lauren

Large investors have recently made changes to their positions in the business. JPL Wealth Management LLC purchased a new stake in shares of Ralph Lauren during the third quarter worth about $27,000. CYBER HORNET ETFs LLC purchased a new stake in Ralph Lauren during the 2nd quarter valued at approximately $28,000. MUFG Securities EMEA plc purchased a new stake in Ralph Lauren during the 2nd quarter valued at approximately $32,000. Acumen Wealth Advisors LLC bought a new stake in shares of Ralph Lauren during the fourth quarter valued at approximately $38,000. Finally, Geneos Wealth Management Inc. raised its position 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 valued at $39,000 after buying an additional 52 shares during the last quarter. 67.91% of the stock is currently owned by hedge funds and other institutional investors.

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.

Analysts Set New Price Targets

Several equities research analysts recently issued reports on RL shares. Barclays raised their target price on shares of Ralph Lauren from $439.00 to $463.00 and gave the stock an “overweight” rating in a report on Friday. Wall Street Zen raised Ralph Lauren from a “hold” rating to a “buy” rating in a report on Saturday, July 4th. BTIG Research upped their target price on shares of Ralph Lauren from $450.00 to $460.00 and gave the company a “buy” rating in a report on Friday. Needham & Company LLC boosted 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. Finally, Evercore restated an “outperform” rating and issued a $460.00 price objective on shares of Ralph Lauren in a research note on Friday. Sixteen equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $445.67.

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.