Ralph Lauren (NYSE:RL) Releases Quarterly Earnings Results, Beats Estimates By $0.42 EPS

Ralph Lauren (NYSE:RL) announced its quarterly earnings data on Thursday. The textile maker reported $6.22 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $5.80 by $0.42, FiscalAI reports. The firm had revenue of $2.41 billion during the quarter, compared to analyst estimates of $2.30 billion. Ralph Lauren had a net margin of 11.28% and a return on equity of 36.18%. Ralph Lauren’s quarterly revenue was up 12.2% on a year-over-year basis. During the same quarter in the prior year, the firm posted $4.82 earnings per share.

Here are the key takeaways from Ralph Lauren’s conference call:

• Ralph Lauren beat expectations in Q3 — total company revenue grew ~10% (constant currency) and adjusted operating margin expanded ~200 bps to 20.7%, and management raised FY26 revenue guidance to a high single- to low double-digit increase with ~100–140 bps of expected operating margin expansion.
• Strong full‑price demand and reduced discounting drove improved quality of sales, producing an outsized 18% AUR increase and a ~140 bp expansion in adjusted gross margin to 69.8%.
• Brand momentum translated to customer growth — the company added 2.1 million new DTC consumers this quarter, increased social reach to >68 million followers, and saw Asia lead performance (China >30%), including launch of a U.S. TikTok shop.
• U.S. tariffs are flowing through to cost of goods sold and are expected to pressure margins in Q4 (company expects Q4 operating margin to contract ~80–120 bps) with tariffs remaining a meaningful headwind into the first half of FY27.
• Management is deliberately shifting the mix toward full‑price DTC and away from off‑price wholesale while investing in AI/digital (Ask Ralph), marketing, and ~4–5% CapEx — strategic moves that should raise long‑term brand value but create near‑term timing noise (wholesale receipt shifts and outlet pullbacks).

Ralph Lauren Stock Up 2.2%

NYSE:RL traded up $7.42 during midday trading on Friday, hitting $346.08. 213,204 shares of the company were exchanged, compared to its average volume of 583,092. The company has a current ratio of 2.04, a quick ratio of 1.35 and a debt-to-equity ratio of 0.57. Ralph Lauren has a fifty-two week low of $176.61 and a fifty-two week high of $380.00. The company has a market capitalization of $20.99 billion, a PE ratio of 25.47, a price-to-earnings-growth ratio of 1.56 and a beta of 1.49. The company has a fifty day simple moving average of $361.37 and a 200 day simple moving average of $330.43.

Ralph Lauren Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, January 9th. Investors of record on Friday, December 26th were given a $0.9125 dividend. This represents a $3.65 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date of this dividend was Friday, December 26th. Ralph Lauren’s dividend payout ratio (DPR) is 26.98%.

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on RL shares. Guggenheim began coverage on Ralph Lauren in a research note on Tuesday, December 9th. They set a “neutral” rating for the company. Jefferies Financial Group began coverage on shares of Ralph Lauren in a report on Wednesday, January 14th. They issued a “buy” rating and a $425.00 price objective on the stock. Weiss Ratings reiterated a “buy (b)” rating on shares of Ralph Lauren in a report on Thursday, January 22nd. Wells Fargo & Company raised their price target on Ralph Lauren from $385.00 to $400.00 and gave the stock an “overweight” rating in a research report on Tuesday, December 16th. Finally, Deutsche Bank Aktiengesellschaft set a $422.00 price objective on Ralph Lauren in a research note on Thursday, January 8th. Fifteen investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, Ralph Lauren has an average rating of “Moderate Buy” and an average price target of $380.65.

Institutional Trading of Ralph Lauren

A number of large investors have recently made changes to their positions in RL. Polymer Capital Management US LLC increased its position in Ralph Lauren by 1.1% during the third quarter. Polymer Capital Management US LLC now owns 3,230 shares of the textile maker’s stock worth $1,013,000 after buying an additional 34 shares during the period. Geneos Wealth Management Inc. increased its position in Ralph Lauren by 57.1% during the 2nd quarter. Geneos Wealth Management Inc. now owns 143 shares of the textile maker’s stock worth $39,000 after purchasing an additional 52 shares during the period. CIBC Private Wealth Group LLC raised its stake in shares of Ralph Lauren by 10.7% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 540 shares of the textile maker’s stock worth $169,000 after buying an additional 52 shares in the last quarter. Integrated Wealth Concepts LLC lifted its holdings in shares of Ralph Lauren by 6.1% in the 3rd quarter. Integrated Wealth Concepts LLC now owns 1,055 shares of the textile maker’s stock valued at $331,000 after buying an additional 61 shares during the period. Finally, Brown Brothers Harriman & Co. boosted its stake in shares of Ralph Lauren by 43.8% in the third quarter. Brown Brothers Harriman & Co. now owns 207 shares of the textile maker’s stock valued at $65,000 after buying an additional 63 shares in the last quarter. 67.91% of the stock is owned by institutional investors and hedge funds.

Key Ralph Lauren News

Here are the key news stories impacting Ralph Lauren this week:

• Positive Sentiment: Analysts raised price targets and ratings — BTIG increased its price target to $435 and set a Buy, signaling ~28% upside from current levels. This adds institutional conviction to the stock’s longer-term upside. BTIG price target raise
• Positive Sentiment: Telsey Advisory reaffirmed an Outperform rating with a $435 target, reinforcing buy-side support and echoing the bullish analyst tone. Telsey reaffirmation
• Positive Sentiment: Q3 results beat expectations — RL reported $6.22 EPS on $2.41B revenue (both above consensus), driven by strong holiday demand for core products; management raised FY guidance for revenue and operating margin expansion. These fundamentals support the stock’s medium-term thesis. Reuters Q3 sales beat
• Neutral Sentiment: Company commentary and transcripts are available for investors who want detail — the earnings call transcript and coverage (Seeking Alpha, Zacks) give line-item color on region performance, product strength and inventory. Use these to assess whether tariff impacts are transitory. Earnings call transcript
• Neutral Sentiment: Evercore and other boutiques remain constructive (Buys), so analyst sentiment is broadly supportive — a tailwind if macro/tariff concerns ease. Evercore remains buy
• Negative Sentiment: Tariff-related margin warning drove the sell-off — management flagged potential Q4 margin pressure from U.S. tariffs, which prompted investors to focus on near-term profitability despite the beat. That guidance hit sentiment and likely explains today’s downward move. Tariff margin warning
• Negative Sentiment: Mixed headlines and “shares dive” coverage amplified selling — some outlets highlighted the margin flag and used bearish language (e.g., “flops,” “shares dive”), which can accelerate short-term outflows even when fundamentals look solid. Negative headlines

Ralph Lauren Company Profile

Ralph Lauren Corporation (NYSE: RL) is a global designer, marketer and distributor of premium lifestyle products under the Ralph Lauren name and a portfolio of related brands. The company, founded by Ralph Lauren in 1967 and headquartered in New York City, has grown from a single line of men’s neckties into a global lifestyle business that spans apparel, accessories and home goods.

Ralph Lauren’s product assortment includes menswear, womenswear and childrenswear along with footwear, leather goods, eyewear, fragrances and home furnishings.