Ralph Lauren’s Price Target Boosted at TD Cowen

Ralph Lauren (NYSE:RL) reported fourth-quarter 2025 results that topped analyst expectations across the board, fueled by strong sales growth and margin expansion.

The company posted EPS of $2.27, beating the $2.04 consensus. Revenue reached $1.7 billion, ahead of the $1.64 billion estimate. On a constant currency basis, revenue rose 10%, outpacing the projected 7.3%, while comparable sales jumped 13%, well above the expected 7.68%.

Profitability also exceeded expectations, with an adjusted gross margin of 68.6% versus the 67.2% forecast, and an operating margin of 10.3%, slightly ahead of the 9.97% projection.

Looking forward, Ralph Lauren guided to low-single-digit revenue growth for fiscal 2026 in constant currency, with most of that growth anticipated in the first half of the year—suggesting continued momentum in brand demand and operational efficiency.

• Ralph Lauren Corporation (NYSE:RL) reported an earnings per share (EPS) of $2.27, surpassing estimates and indicating a 33% rise year-over-year.
• The company achieved a revenue of approximately $1.7 billion, an 8% increase from the previous year, beating consensus estimates.
• Ralph Lauren's financial metrics, including a price-to-earnings (P/E) ratio of 24.52 and a price-to-sales ratio of 2.46, reflect strong investor confidence and market valuation.

Ralph Lauren Corporation, listed on the NYSE:RL, is a prominent player in the luxury apparel industry. Known for its premium clothing and accessories, the company has consistently demonstrated strong financial performance. Ralph Lauren competes with other luxury brands in the textile-apparel sector, maintaining a robust market position.

On May 22, 2025, Ralph Lauren reported earnings per share (EPS) of $2.27, surpassing the estimated $2. This represents a 33% rise in adjusted EPS compared to the previous year, as highlighted by Barron's. The company has consistently outperformed consensus EPS estimates over the past four quarters, showcasing its strong financial management.

Ralph Lauren achieved a revenue of approximately $1.7 billion, exceeding the estimated $1.65 billion. This marks an 8% year-over-year increase, as noted by Barron's, and a 3.83% beat over the Zacks Consensus Estimate. The company's total comparable sales surged by 13%, significantly outperforming the anticipated 6.1% growth.

The company's financial metrics provide further insight into its performance. Ralph Lauren's price-to-earnings (P/E) ratio is approximately 24.52, indicating investor confidence in its earnings potential. The price-to-sales ratio stands at about 2.46, reflecting the value placed on each dollar of sales. Additionally, the enterprise value to sales ratio is around 2.56, offering a perspective on the company's valuation relative to its revenue.

Ralph Lauren's CEO, Patrice Louvet, expressed confidence in the company's future, emphasizing plans to focus on growth across various lifestyle categories, geographies, and channels. The company aims to maintain agility and leverage its diversified supply chain, operating discipline, and robust balance sheet to navigate current macroeconomic challenges. Ralph Lauren also anticipates a modest expansion in its operating margin.

• The consensus price target for Ralph Lauren Corporation (NYSE: RL) has increased from $213.23 to $265.67, indicating a positive shift in analyst sentiment.
• Ralph Lauren is expected to experience earnings growth, with a potential earnings beat in its upcoming report, as suggested by analysts.
• Despite market volatility, RL's stock rose by 2.8%, showcasing resilience and market confidence in its performance.

Ralph Lauren Corporation (NYSE: RL) is a renowned name in the fashion industry, known for its premium lifestyle products. The company designs, markets, and distributes a wide range of products, including apparel, accessories, and home furnishings. Over the past year, the consensus price target for RL has increased significantly, reflecting growing optimism among analysts about the company's future performance.

A year ago, the average price target for RL was $213.23, indicating a more conservative outlook. However, recent data shows that the average price target has risen to $265.67. This upward trend suggests that analysts are more optimistic about Ralph Lauren's potential growth. Factors such as improved financial performance and strategic initiatives may have contributed to this positive sentiment.

Ralph Lauren is anticipated to experience earnings growth in its upcoming report, suggesting a potential earnings beat. Analyst Ike Boruchow from Wells Fargo has set a price target of $110 for the stock, indicating a positive outlook. This suggests that Ralph Lauren has the right combination of factors to support expected growth, making it a promising opportunity in the consumer discretionary sector.

Despite a volatile market environment, RL experienced a positive trading session, with its stock rising by 2.8%. This increase occurred even as major indices like the Dow Jones Industrial Average, Nasdaq Composite, and S&P 500 ended the day lower. This resilience highlights the market's confidence in Ralph Lauren's performance amidst broader market uncertainties.

Investors are encouraged to consider Ralph Lauren as a potential investment opportunity. The Zacks Earnings ESP tool is highlighted as a valuable resource for identifying stocks likely to exceed quarterly earnings estimates. With a strong track record of surpassing earnings expectations, RL is well-positioned to potentially exceed estimates in its upcoming quarterly report.

Ralph Lauren Corporation, listed on the NYSE:RL, is a renowned name in the fashion industry, known for its premium clothing and lifestyle products. As the company prepares to release its quarterly earnings on May 22, 2025, Wall Street analysts are keenly observing the anticipated financial performance. 

Analysts have slightly adjusted their EPS estimates to $1.96, reflecting a 14.6% increase from the previous year. This revision, although minor, indicates a reevaluation of initial expectations. Historically, such changes in earnings estimates have been linked to short-term stock price movements, suggesting potential volatility in RL's stock following the earnings announcement.

Ralph Lauren's revenue is projected to reach $1.63 billion, marking a 4.1% increase from the same quarter last year. This growth is indicative of the company's strong brand momentum and digital expansion. However, currency fluctuations might impact the overall gains. In the previous quarter, RL exceeded earnings expectations by 7.6%, contributing to an average earnings surprise of 6.5% over the last four quarters.

The market is closely monitoring the upcoming earnings report, as it could significantly influence RL's stock price. A positive earnings surprise could lead to an upward movement, while results falling short of expectations might cause a decline. The sustainability of any immediate price changes will depend on management's discussion of business conditions during the earnings call.

Ralph Lauren's financial metrics, such as a P/E ratio of 24.85 and a price-to-sales ratio of 2.49, provide insight into its valuation. The company's enterprise value to sales ratio is 2.60, and its enterprise value to operating cash flow ratio is 14.63. With a debt-to-equity ratio of 1.06 and a current ratio of 1.76, RL maintains a stable financial position, supporting its growth prospects.

• Paul Kearney from Barclays sets a price target of $260 for NYSE:RL, indicating a potential upside of 18.2%.
• Ralph Lauren's upcoming earnings report anticipates an EPS of $1.96, a 14.62% increase year-over-year, with revenue expected to rise by 4.05%.
• Despite a slight decline in the latest trading session, RL's stock demonstrates resilience with a lesser decrease over the past month compared to the Consumer Discretionary sector and the S&P 500.

Ralph Lauren Corporation, listed on the NYSE under the symbol RL, is a renowned global leader in the design, marketing, and distribution of premium lifestyle products, including apparel, accessories, home furnishings, and fragrances. The company competes with other high-end fashion brands like Burberry and Gucci. On April 28, 2025, Paul Kearney from Barclays set a price target of $260 for RL, suggesting a potential upside of 18.2% from its current trading price of $219.96.

In the latest trading session, RL closed at $219.96, marking a slight decline of 0.09% from the previous day. This performance lagged behind the broader market, with the S&P 500 gaining 0.74%, the Dow increasing by 0.05%, and the Nasdaq rising by 1.26%. Despite this, RL's stock has shown resilience over the past month, decreasing by only 2.23%, which is better than the Consumer Discretionary sector's loss of 4.48% and the S&P 500's decline of 4.77%.

Investors are keenly awaiting Ralph Lauren's upcoming earnings report. The company is expected to announce an earnings per share (EPS) of $1.96, a 14.62% increase compared to the same quarter last year. Additionally, the consensus estimate for revenue is $1.63 billion, marking a 4.05% rise from the previous year's quarter. These figures indicate a positive outlook for the company's financial performance.

Currently, RL's stock price is $219.96, reflecting a slight decrease of 0.19, or approximately -0.09% in percentage terms. During today's trading, the stock has fluctuated between a low of $217.01 and a high of $221.55. Over the past year, RL has reached a high of $289.33 and a low of $155.96, showcasing its volatility. The company's market capitalization stands at approximately $13.59 billion, with a trading volume of 741,590 shares on the NYSE.

• Paul Kearney from Barclays sets a price target of $260 for NYSE:RL, indicating a potential upside of 18.2%.
• Ralph Lauren's upcoming earnings report anticipates an EPS of $1.96, a 14.62% increase year-over-year, with revenue expected to rise by 4.05%.
• Despite a slight decline in the latest trading session, RL's stock demonstrates resilience with a lesser decrease over the past month compared to the Consumer Discretionary sector and the S&P 500.

Ralph Lauren Corporation, listed on the NYSE under the symbol RL, is a renowned global leader in the design, marketing, and distribution of premium lifestyle products, including apparel, accessories, home furnishings, and fragrances. The company competes with other high-end fashion brands like Burberry and Gucci. On April 28, 2025, Paul Kearney from Barclays set a price target of $260 for RL, suggesting a potential upside of 18.2% from its current trading price of $219.96.

In the latest trading session, RL closed at $219.96, marking a slight decline of 0.09% from the previous day. This performance lagged behind the broader market, with the S&P 500 gaining 0.74%, the Dow increasing by 0.05%, and the Nasdaq rising by 1.26%. Despite this, RL's stock has shown resilience over the past month, decreasing by only 2.23%, which is better than the Consumer Discretionary sector's loss of 4.48% and the S&P 500's decline of 4.77%.

Investors are keenly awaiting Ralph Lauren's upcoming earnings report. The company is expected to announce an earnings per share (EPS) of $1.96, a 14.62% increase compared to the same quarter last year. Additionally, the consensus estimate for revenue is $1.63 billion, marking a 4.05% rise from the previous year's quarter. These figures indicate a positive outlook for the company's financial performance.

Currently, RL's stock price is $219.96, reflecting a slight decrease of 0.19, or approximately -0.09% in percentage terms. During today's trading, the stock has fluctuated between a low of $217.01 and a high of $221.55. Over the past year, RL has reached a high of $289.33 and a low of $155.96, showcasing its volatility. The company's market capitalization stands at approximately $13.59 billion, with a trading volume of 741,590 shares on the NYSE.

TD Cowen analysts increased their price target for Ralph Lauren (NYSE:RL) from $197 to $202 while maintaining a Buy rating on the stock.

The analysts highlighted that Ralph Lauren continues to achieve margin-accretive growth in its direct-to-consumer (DTC) channel, which accounts for 69% of its sales.

The analysts mentioned Jane Nielsen stepping down as CFO, and emphasizing her effective management that resulted in a mid-teens EBIT margin (excluding foreign exchange impacts) in fiscal 2025 and a 29% return on invested capital (ROIC), with potential for further growth.

The price target has been raised to $202, reflecting confidence that brand elevation can sustain a low-double-digit compound annual growth rate (CAGR) in EPS.