Ralph Lauren beats Q2 sales estimates, raises outlook on strong first half performance

Ralph Lauren

06/11/2025 13:09

Overview

Ralph Lauren fiscal Q2 revenue grows 17% yr/yr, beating analyst expectations

Adjusted EPS for fiscal Q2 beats consensus, reflecting strong operational performance

Company raises full-year fiscal 2026 outlook, citing strong first-half performance

Outlook

Ralph Lauren raises full-year revenue outlook to increase 5% to 7% in constant currency

Company expects full-year operating margin to expand 60 to 80 basis points in constant currency

Ralph Lauren anticipates mid-single-digit revenue growth in Q3 on a constant currency basis

Result Drivers

GLOBAL REVENUE GROWTH - Double-digit revenue growth in all regions, led by Asia and Europe, with North America also showing strong performance

DIRECT-TO-CONSUMER SALES - Global direct-to-consumer comparable store sales grew 13%, driven by broad-based performance across regions and channels

GROSS MARGIN EXPANSION - Gross margin increased by 100 basis points, driven by AUR growth, favorable product mix, and lower cotton costs

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$2 bln
$1.89 bln (14 Analysts)
Q2 Adjusted EPS
Beat
$3.79
$3.44 (14 Analysts)
Q2 EPS
$3.32
Q2 Gross Margin
68.00%
Q2 Operating Margin
12.20%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the apparel & accessories peer group is "buy"

Wall Street's median 12-month price target for Ralph Lauren Corp is $352.00, about 10% above its November 5 closing price of $316.90

The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 21 three months ago

Press Release: ID:nBw1PCyMTa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)