Ralph Lauren Is Growing Despite Tariff Headwinds, Hikes Dividend By 10%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 22 2025
0mins
Should l Buy RL?
Source: Benzinga
Financial Performance: Ralph Lauren Corp reported an 8% year-on-year sales growth to $1.70 billion for Q4 FY25, exceeding analyst expectations, with adjusted EPS of $2.27 also surpassing estimates. The company generated $1.24 billion in operating cash flow and announced a 10% increase in its quarterly cash dividend.
Future Outlook: For FY26, Ralph Lauren anticipates low-single digit revenue growth, primarily in the first half of the fiscal year, while maintaining a focus on managing macroeconomic uncertainties and leveraging its diversified supply chain.
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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: 359.510
Low
305.00
Averages
401.85
High
473.00
Current: 359.510
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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- Optimistic Sales Outlook: Ahead of the fashion show, Ralph Lauren raised its annual sales and margin outlook, driven by the success of its core dress and suit designs along with price increases, successfully attracting more affluent Gen Z consumers.
- Strong Model Lineup: Model Gigi Hadid opened the show in a dark turtleneck and brown skirt set, while other models sported pageboy hats, patterned scarves, and fur coats, showcasing the brand's diverse styles and enhancing its fashion influence.
- Stock Price Surge: Ralph Lauren's stock has increased by a third over the past year, reflecting market confidence in its brand value and future growth potential, further solidifying its position in the high-end fashion market.
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- Corporate Strategies: Airlines like Delta and United are shifting their profit focus towards high-end markets by leveraging corporate travel and loyalty programs, reflecting a reliance on affluent consumers for revenue generation.
- Price Adjustments: PepsiCo has cut prices on snacks by up to 15% in response to consumer backlash against previous price hikes, indicating a decline in purchasing power among lower-income consumers and forcing companies to adapt their strategies to maintain market share.
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- Design Features: The collection emphasized the interplay between softness and strength, featuring romantic Victorian blouses, flowing skirts, and riding boots, complemented by metallic accents and crystal embellishments, marking the season's design signatures.
- Market Reaction: Ralph Lauren's shares rose 1.9% in Wednesday morning trading, with historical data indicating that the stock typically performs well in the six weeks following Fashion Week when the brand's collection receives favorable reviews, showcasing its market potential.
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- Retail Operations Continuity: Despite entering bankruptcy, Eddie Bauer's stores in the U.S. and Canada will remain open for liquidation sales, maximizing asset value while searching for a going-concern buyer, indicating a strategic approach to asset management during financial distress.
- E-commerce Business Stability: Eddie Bauer's e-commerce and wholesale operations, which transitioned to Outdoor 5, LLC in January, remain unaffected by the bankruptcy process, suggesting that the company has managed to stabilize part of its business during this transition.
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- Return to Brick-and-Mortar: Young consumers are rediscovering the joy of in-store shopping, reflecting a longing for the carefree atmosphere of 2016, which may lead to improved performance for retailers.
- Brand Opportunities: Brands like Abercrombie & Fitch could leverage this nostalgia wave to reshape their image, particularly if they successfully distance themselves from past controversies, potentially attracting more young consumers.
- Market Outlook: Retail trends typically last about 18 months, and this nostalgia cycle is expected to persist through the midterm elections this year, possibly extending into next year, providing long-term market opportunities for related brands.
See More
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- Nostalgia Trend Emergence: Gen Z's nostalgia for 2016 has rapidly spread across social media, with Spotify user-generated '2016' playlists soaring by 790% since January 1, indicating a strong yearning for the cultural elements of that time, potentially driving a revival for related brands.
- Return to Brick-and-Mortar: Young consumers are rediscovering the appeal of in-store shopping after years dominated by e-commerce, reflecting a longing for the carefree and familiar comfort of 2016, which could stimulate a retail resurgence.
- Brand Opportunities Arise: Brands like Abercrombie & Fitch and Levi Strauss, which held significant cultural relevance in 2016, may leverage this nostalgia wave to regain market traction, especially as consumers show renewed interest in classic styles.
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