Clothing retailer Ralph Lauren (RL) has reported Fiscal fourth-quarter financial results that surpassed Wall Street estimates.
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The New York-based company known for its Polo shirts announced earnings per share (EPS) of $2.03, which was ahead of the $2 consensus expectation of analysts. The upscale clothing designer said that its revenue in the period totaled $1.70 billion, which was ahead of the $1.63 billion forecast on Wall Street.
Management attributed the strong results to resilient demand for its classic Polo shirts and spring wear. Additionally, the company’s efforts to attract younger and less price-sensitive consumers are starting to payoff, said executives.
Ralph Lauren’s balance sheet. Source: Main Street Data
Weak Guidance
Despite the strong print, Ralph Lauren forecast full-year revenue below Wall Street estimates, citing uncertainty from U.S. import tariffs. The company manufactures much of its clothing overseas, notably in Asian countries such as Vietnam and China that are subject to steep import duties.
Looking ahead, management at Ralph Lauren said they expect fiscal 2026 revenue to increase in the low-single digits from last year. Analysts had estimated a rise of 4.39% in the company’s sales this fiscal year. RL stock has gained 22% this year.
Is RL Stock a Buy?
The stock of Ralph Lauren has a consensus Moderate Buy rating among 11 Wall Street analysts. That rating is based on nine Buy, one Hold, and one Sell recommendations issued in the last three months. The average RL price target of $280.55 implies 0.62% upside from current levels. These ratings are likely to change after the company’s financial results.
