Ralph Lauren Corp (NYSE:RL) on Thursday reported its fiscal fourth-quarter results.
• Ralph Lauren stock is trading at elevated levels. What’s ahead for RL stock?
Here are the key analyst insights:
- Needham analyst Tom Nikic maintained a Buy rating, while raising the price target from $400 to $405.
- BTIG analyst Robert Drbul reiterated a Buy rating and price target of $450.
Needham: Ralph Lauren's "brand-elevation strategy is working very well," and is driving growth in sales, margins and earnings, Nikic said in a note. He mentioned four highlights of the latest quarterly results:
- Continued AUR Expansion: The average unit retail (AUR) of the DTC (direct-to-consumer) channel grew 16%, representing the 36th consecutive quarter of growth.
- Continued Outperformance of High-Potential Categories: The company's high-potential categories of women’s apparel, outerwear,and handbags continued to outperform, generating more than 20% in the quarter.
- China Growth Accelerates: The Chinese market, which represents a "big opportunity" for Ralph Lauren, grew more than 30% the first three quarters of fiscal 2026. Growth accelerated to more than 50% in the fourth quarter, driven by a strong Lunar New Year performance.
- Solid Growth Planned For Europe: Although the company expects lower tourism in Europe this year, it projects low-to-medium single-digit growth in the region, given its strong brand momentum.
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BTIG: Ralph Lauren reported "standout" results for the latest quarter, significantly ahead of expectations, providing "continued evidence of strong global brand momentum," Drbul said. The company's revenues grew 17% to $2 billion and adjusted earnings came in at $2.80 per share, with global retail comps up 17% with mid-teens AUR growth, which reflects "sustained strength in full-price selling and ongoing brand elevation," he added.
Backed by pricing power and a favorable mix, Ralph Lauren's adjusted gross margin expanded by around 110 basis points (bps) year-on-year to 69.7%, the analyst stated. The company's performance was led by Asia, with China growing more than 50% on "strong Lunar New Year demand and continued brand momentum," he further wrote.
RL Price Action: Shares of Ralph Lauren had risen by 0.41% to $376.08 at the time of publication on Friday.
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