Ralph Lauren (RL) Stock Hits Best Day in Over a Year on Earnings Beat

TLDR

• Ralph Lauren stock jumped 11% to $363.37 Thursday after beating Q4 earnings and revenue estimates
• Adjusted EPS came in at $2.80 vs. the $2.55 analyst estimate; revenue hit $1.98B vs. $1.85B expected
• Asia led regional growth with revenue up 31%, driven by strong China demand during Lunar New Year
• Full-year revenue crossed $8 billion for the first time, up 15% year over year
• The company raised its quarterly dividend 10% to $1.00 per share and returned over $700M to shareholders in fiscal 2026

Ralph Lauren (RL) stock hit $363.37 on Thursday, up 11%, making it the top performer in the S&P 500 for the session. It was the stock’s best single-day gain in over a year, according to Dow Jones Market Data.

Ralph Lauren Corporation, RL

The move came after the company reported fiscal fourth-quarter adjusted earnings of $2.80 per share. Wall Street had expected $2.55. A year ago, the figure was $2.27.

Revenue for the quarter came in at $1.98 billion, up 16% year over year. Analysts had been looking for $1.85 billion.

Comparable store sales across Ralph Lauren’s direct-to-consumer network grew 17% in the quarter. The company credited fewer markdowns and stronger full-price selling for mid-teens growth in average unit retail prices.

Regional Breakdown

Asia was the standout, with revenue up 31% on a reported basis and 28% in constant currency. China was a key driver, boosted by Lunar New Year demand.

Europe grew 18% and North America posted an 8% gain. Women’s Apparel, Outerwear, and Handbags each grew more than 20% in constant currency.

For the full fiscal year, Ralph Lauren crossed $8 billion in revenue for the first time, posting $8.1 billion — up 15%. Full-year adjusted operating margin reached 16.0%, up 200 basis points year over year. The company added 6.5 million new direct-to-consumer customers during the year.

Dividend and Guidance

Ralph Lauren raised its quarterly dividend by 10% to $1.00 per share. The company returned more than $700 million to shareholders through dividends and buybacks during fiscal 2026.

CEO Patrice Louvet said the company “exceeded our financial commitments in Fiscal 2026” and pointed to a strong balance sheet with $2.1 billion in cash and short-term investments at quarter’s end.

Looking ahead, Ralph Lauren guided for mid- to high-single-digit constant currency revenue growth in the first quarter of fiscal 2027, with operating margin expansion of 80 to 120 basis points.

For the full fiscal year 2027, the company sees constant currency revenue rising in a range centered on 4% to 5% — in line with what analysts had forecast.

Despite Thursday’s jump, RL stock is up just 2.5% in 2026, lagging the S&P 500’s 8% gain year to date.

Of 21 analysts polled by FactSet, the stock carries an average Overweight rating with a price target of $429.64 — implying around 18% upside from current levels.

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