Ralph Lauren Q4 revenue beats estimates on DTC growth

Ralph Lauren

21/05/2026 13:12

Overview

U.S. luxury lifestyle brand's fiscal Q4 revenue rose 17%, beating analyst expectations

Adjusted EPS for fiscal Q4 beat analyst expectations

Company announced 10% increase to its quarterly dividend

Outlook

Company expects fiscal 2027 constant currency revenue growth of 4% to 5%

Ralph Lauren sees fiscal 2027 operating margin expanding 40 to 60 basis points

Company plans fiscal 2027 capital expenditures at 4% to 5% of revenue

Result Drivers

DIRECT-TO-CONSUMER SALES - Global comparable store sales increased 17% in Q4, with gains across regions and channels

HIGHER AUR - Average unit retail grew by mid-teens in Q4, driven by elevated product offerings, favorable mix shifts, increased full-price selling and reduced discount rates

GROSS MARGIN EXPANSION - Gross margin rose 110 basis points in Q4, helped by geographic, channel and product mix, AUR growth, and lower cotton costs, offsetting higher U.S. tariffs and other product costs

Company press release: ID:nBw5xnYQ0a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$2 bln
$1.85 bln (15 Analysts)
Q4 Adjusted EPS
Beat
$2.80
$2.55 (15 Analysts)
Q4 EPS
$2.45
Q4 Gross Margin
69.70%
Q4 Operating Margin
9.50%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "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 $429.00, about 30.3% above its May 20 closing price of $329.24

The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 21 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)