Overview

• Ralph Lauren fiscal Q2 revenue grows 17% yr/yr, beating analyst expectations

• Adjusted EPS for fiscal Q2 beats consensus, reflecting strong operational performance

• Company raises full-year fiscal 2026 outlook, citing strong first-half performance

Outlook

• Ralph Lauren raises full-year revenue outlook to increase 5% to 7% in constant currency

• Company expects full-year operating margin to expand 60 to 80 basis points in constant currency

• Ralph Lauren anticipates mid-single-digit revenue growth in Q3 on a constant currency basis

Result Drivers

• GLOBAL REVENUE GROWTH - Double-digit revenue growth in all regions, led by Asia and Europe, with North America also showing strong performance

• DIRECT-TO-CONSUMER SALES - Global direct-to-consumer comparable store sales grew 13%, driven by broad-based performance across regions and channels

• GROSS MARGIN EXPANSION - Gross margin increased by 100 basis points, driven by AUR growth, favorable product mix, and lower cotton costs

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", 3 "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 $352.00, about 10% above its November 5 closing price of $316.90

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

Press Release: ID:nBw1PCyMTa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)