Ralph Lauren (NYSE:RL) Posts Earnings Results, Beats Expectations By $0.42 EPS

Ralph Lauren (NYSE:RL) posted its earnings results on Thursday. The textile maker reported $6.22 EPS for the quarter, topping the consensus estimate of $5.80 by $0.42, FiscalAI reports. The business had revenue of $2.41 billion during the quarter, compared to analysts’ expectations of $2.30 billion. Ralph Lauren had a return on equity of 36.18% and a net margin of 11.28%.The firm’s revenue was up 12.2% on a year-over-year basis. During the same period in the previous year, the business earned $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 Price Performance

Ralph Lauren stock traded down $14.86 during mid-day trading on Thursday, hitting $339.84. The stock had a trading volume of 1,643,990 shares, compared to its average volume of 572,732. Ralph Lauren has a one year low of $176.61 and a one year high of $380.00. The company has a current ratio of 2.04, a quick ratio of 1.35 and a debt-to-equity ratio of 0.57. The firm has a market capitalization of $20.61 billion, a P/E ratio of 25.02, a P/E/G ratio of 1.55 and a beta of 1.49. The firm’s 50 day moving average is $362.01 and its 200 day moving average is $330.37.

Ralph Lauren Announces Dividend

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

Ralph Lauren News Summary

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

• Positive Sentiment: Q3 results beat expectations — EPS $6.22 vs. $5.80 est.; revenue $2.41B vs. $2.30B est.; revenue +12.2% year-over-year. Strong holiday sales helped lift margins this quarter. RL Beats Q3 Earnings & Revenue Estimates on Strong Holiday Result
• Positive Sentiment: Management raised the full-year fiscal 2026 outlook — now expects high-single- to low-double-digit constant-currency revenue growth and operating-margin expansion of roughly 100–140 basis points. Ralph Lauren Q3 earnings beat, shares slide on tariff-driven margin outlook
• Positive Sentiment: Demand remained resilient among affluent shoppers, with Polo and leather handbags highlighted as strong categories during the holiday season. Ralph Lauren posts third-quarter sales beat on steady demand
• Neutral Sentiment: Sell-side support: Evercore ISI reiterated a buy stance, which may support longer-term investor sentiment. Evercore ISI Remains a Buy on Ralph Lauren (RL)
• Neutral Sentiment: Full earnings/management detail available in the Q3 earnings call transcript — useful for investors wanting color on inventory, pricing, and cadence into Q4. Ralph Lauren Corporation (RL) Q3 2026 Earnings Call Transcript
• Negative Sentiment: Guidance caveat — management warned of tariff-driven margin pressure in Q4, which triggered the intraday share decline despite the beat and higher full-year guidance. This near-term cost risk is the primary reason for investor selling. Ralph Lauren Q3 earnings beat, shares slide on tariff-driven margin outlook
• Negative Sentiment: Macro noise: a slight uptick in initial jobless claims and a busy earnings morning can amplify volatility and weigh on retail stocks in the short term. Jobless Claims Pop Up a Bit, Major Morning for Earnings

Institutional Trading of Ralph Lauren

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Sivia Capital Partners LLC bought a new stake in shares of Ralph Lauren in the second quarter worth about $386,000. Coldstream Capital Management Inc. increased its stake in Ralph Lauren by 11.4% in the 3rd quarter. Coldstream Capital Management Inc. now owns 898 shares of the textile maker’s stock worth $282,000 after acquiring an additional 92 shares during the last quarter. Armistice Capital LLC purchased a new stake in shares of Ralph Lauren during the 3rd quarter worth approximately $277,000. Voleon Capital Management LP bought a new position in shares of Ralph Lauren during the 3rd quarter valued at approximately $259,000. Finally, Qtron Investments LLC purchased a new stake in Ralph Lauren during the third quarter valued at $275,000. Institutional investors own 67.91% of the company’s stock.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on RL shares. UBS Group increased their price target on shares of Ralph Lauren from $473.00 to $474.00 and gave the stock a “buy” rating in a report on Wednesday, January 28th. Evercore ISI upped their price objective on Ralph Lauren from $385.00 to $415.00 and gave the stock an “outperform” rating in a report on Monday. 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 for the company. Argus raised their price target on shares of Ralph Lauren from $360.00 to $400.00 and gave the company a “buy” rating in a research report on Thursday, January 15th. Finally, Weiss Ratings reissued a “buy (b)” rating on shares of Ralph Lauren in a report on Thursday, January 22nd. Fifteen analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Ralph Lauren presently has a consensus rating of “Moderate Buy” and an average price target of $377.71.

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.