Ralph Lauren beats profit estimates on stable demand in Europe, China

Written by Emily J. Thompson, Senior Investment Analyst

RL+0.98%

Source: Reuters

Updated: Aug 07 2024

0mins

Source: Reuters

Ralph Lauren's Financial Performance: Ralph Lauren reported a 1% increase in net revenue to $1.51 billion for the first quarter, surpassing profit estimates with earnings of $2.70 per share, driven by strong demand in Europe and Asia despite a decline in North American sales.
Market Outlook and Challenges: The company anticipates a moderation in North America wholesale declines and expects constant currency revenues to grow by 3% to 4% in the current quarter, while also warning that third-quarter sales may be affected by a shorter holiday selling window.

$367.37+Infinity%1D

Analyst Views on RL

Wall Street analysts forecast RL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RL is 401.85 USD with a low forecast of 305.00 USD and a high forecast of 473.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

14 Analyst Rating

12 Buy

2 Hold

0 Sell

Strong Buy

Current: 363.800

Low

305.00

Averages

401.85

High

473.00

Current: 363.800

Low

305.00

Averages

401.85

High

473.00

Deutsche Bank

Krisztina Katai

resume

$422

2026-01-08

Reason

Deutsche Bank

Krisztina Katai

Price Target

$422

AI Analysis

2026-01-08

resume

Reason

Deutsche Bank analyst Krisztina Katai resumed coverage of Ralph Lauren with a Buy rating and $422 price target. The firm resumed coverage of global brands, off-price, and specialty beauty retail. Following a "surprisingly strong" year for retail, Deutsche is entering 2026 with optimism as it anticipates a "volatile but broadly risk-on" macro environment, the analyst tells investors in a research note. The firm sees solid top-line trends, particularly in the first half of the year, due to easier weather comparisons and a boost in tax refunds.

UBS

NULL -> Buy

maintain

$435 -> $473

2026-01-08

Reason

UBS

Price Target

$435 -> $473

2026-01-08

maintain

NULL -> Buy

Reason

UBS raised the firm's price target on Ralph Lauren to $473 from $435 and keeps a Buy rating on the shares. CY26 EPS upside for Softline stocks is expected to be driven by a stronger-than-expected U.S. consumer and an underappreciated "Health & Wellness 2.0" trend, with estimates at least 4% above consensus for 16 names, the analyst tells investors in a research note. Earnings momentum is projected to extend into CY27, with EPS forecasts averaging about 5% above consensus, the firm adds.

Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for RL

Unlock Now

Barclays

Overweight

maintain

$358 -> $409

2026-01-06

Reason

Barclays

Price Target

$358 -> $409

2026-01-06

maintain

Overweight

Reason

Barclays raised the firm's price target on Ralph Lauren to $409 from $358 and keeps an Overweight rating on the shares. The firm is "constructive" on the specialty retail sector into 2026, citing inventory discipline and macro tailwinds from lower interest rates and gas prices. However, stock selection "is critical as demand uncertainty persists," the analyst tells investors in a research note. Barclays adjusted price targets as part of its 2026 outlook.

Telsey Advisory

Outperform

maintain

$365 -> $435

2025-12-17

Reason

Telsey Advisory

Price Target

$365 -> $435

2025-12-17

maintain

Outperform

Reason

Telsey Advisory raised the firm's price target on Ralph Lauren to $435 from $365 and keeps an Outperform rating on the shares. Telsey is providing its outlook and top picks for 2026, the analyst tells investors. The firm names Ralph Lauren as one of its top picks in Apparel and Footwear, believing the company has built an agile business model with a product core than can perform across economic cycles. Additionally, the company's supply chain is well-diversified, the firm adds.

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.