Ralph Lauren Q3 Sales Exceed Expectations Amid Margin Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 05 2026
0mins
Should l Buy RL?
Source: Newsfilter
- Strong Sales Performance: Ralph Lauren reported third-quarter sales of $2.41 billion, a 12% increase year-over-year, surpassing analysts' expectations of $2.31 billion, indicating strong appeal among high-income and younger consumers.
- Margin Pressure Warning: The company anticipates fourth-quarter margins to shrink by 80 to 120 basis points due to U.S. tariff pressures and increased marketing spend, leading to a 6.6% drop in premarket trading, reflecting market concerns about future profitability.
- Optimized Inventory Management: In response to tariff impacts, Ralph Lauren has tightened inventory and increased full-price sales, aiming to enhance its competitiveness in the luxury market, particularly among younger consumers.
- Optimistic Future Outlook: The company expects fiscal 2026 revenue to grow in the high-single to low-double digits, up from a prior forecast of 5% to 7%, indicating confidence in future market demand.
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Analyst Views on RL
Wall Street analysts forecast RL stock price to rise
14 Analyst Rating
12 Buy
2 Hold
0 Sell
Strong Buy
Current: 363.060
Low
305.00
Averages
401.85
High
473.00
Current: 363.060
Low
305.00
Averages
401.85
High
473.00
About RL
Ralph Lauren Corporation is engaged in the design, marketing, and distribution of luxury lifestyle products, including apparel, footwear and accessories, home, fragrances and hospitality. Its segments include North America, Europe, and Asia. Its brands include Ralph Lauren, Ralph Lauren Collection, Ralph Lauren Purple Label, Polo Ralph Lauren, Lauren Ralph Lauren, Polo Ralph Lauren Children, and Chaps, among others. Its products include apparel and footwear and accessories for men, women, and children, as well as fragrance and home collections, together with its hospitality portfolio. Its range of footwear and accessories include casual shoes, dress shoes, boots, sneakers, sandals, eyewear, watches, scarves, hats and others. Its range of home products includes bed and bath lines, lighting, dining, floor coverings, giftware and more. Its hospitality collection is comprised of its restaurants, including The Polo Bar in New York City, RL Restaurant located in Chicago, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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