Ralph Lauren beats Q3 revenue expectations, raises outlook

Overview

• Luxury lifestyle brand's Q3 revenue rose 12%, beating analyst expectations

• Adjusted EPS for Q3 increased 29% from last year

• Company raised full-year fiscal 2026 revenue and margin outlook

Outlook

• Ralph Lauren raises full-year revenue outlook to high-single to low-double digits

• Company expects full-year operating margin to expand 100 to 140 basis points

• Fourth-quarter revenue expected to grow mid-single digits in constant currency

Result Drivers

• ASIA REVENUE GROWTH - Asia revenue increased 22% due to strong brand momentum, with China revenues up more than 30%

• DIRECT-TO-CONSUMER SALES - Global direct-to-consumer comparable store sales grew high-single-digits, driven by balanced growth across stores and digital

• GROSS MARGIN EXPANSION - Gross margin increased due to high AUR growth, favorable product mix, and lower cotton costs, offsetting increased tariffs

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the apparel & accessories peer group is "buy"

• Wall Street's median 12-month price target for Ralph Lauren Corp is $403.00, about 13.6% above its February 4 closing price of $354.70

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release: ID:nBw64plM2a

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