Ralph Lauren (RL) is likely to issue relatively conservative fiscal 2027 guidance while maintaining a track record of earnings beats, BofA Securities said in a Friday note ahead of the company's fiscal Q4 results on May 21.

The analyst expects Q4 earnings per share of $2.45, slightly below Visible Alpha consensus of $2.52, noting that guidance is likely to align broadly with the company's three-year growth algorithm but leave room for upward revisions over time.

BofA said growth momentum in North America and Asia should continue, while Europe remains a key focus following slower comparable sales trends, with ongoing macro and geopolitical pressures expected to weigh on near-term demand in that region.

The bank flagged margin pressures, expecting a slight Q4 gross margin decline due to tariffs and a softer pricing mix, while still seeing continued earnings before interest and taxes margin expansion in 2027 and 2028 driven by pricing gains, cost efficiencies, and operating leverage.

BofA maintains its buy rating on the stock with a price target of $450.

Shares of Ralph Lauren were down 1.7% in Friday trading.

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