Ralph Lauren (RL) is expected to outperform in the next twelve months, supported by earnings surprises and positive changes to its brand, distribution, and costs, UBS said in a note Friday.

The company's Q4 report strengthened confidence in its transformation, showing strong global sales growth and margin improvement, the investment firm said.

Key Q4 results include 13% global direct-to-consumer sales growth driven by Europe, Asia, and North America, a gross margin above forecast, and a 9% increase in average unit retail, UBS said.

The company expects further growth in average unit retail in Q1, supporting its premium brand strategy and long-term growth outlook, UBS analysts noted.

The analysts raised their earnings estimates for fiscal 2026 to fiscal 2028 by about 1% to 9% due to stronger sales trends and lower margin pressures than previously expected, according to the note.

UBS maintained a buy rating for Ralph Lauren and raised its price target to $384 from $335.

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