Ralph Lauren (RL) Stock: China Growth and Revenue Beat Fuel Strong Quarter

TLDR

• Ralph Lauren stock jumped roughly 10% after the company beat quarterly revenue and earnings estimates.
• Revenue came in at $1.98 billion, topping the $1.85 billion analyst forecast, with EPS of $2.80 vs. the expected $2.55.
• China was the standout, with sales growth of more than 50% during the Lunar New Year period.
• UBS raised its price target on RL to $511 from $480, keeping a Buy rating, citing expected EPS upside and P/E expansion.
• The company forecast mid-single-digit constant currency revenue growth for the full year, while flagging some pressure from European consumer sentiment and energy costs.

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Ralph Lauren (RL) stock surged about 10% after the company posted a strong fourth quarter, topping Wall Street on both revenue and earnings. At $374.64 ahead of the move, the stock was already up 36.7% over the prior year — and the latest results gave investors another reason to take notice.

Ralph Lauren Corporation, RL

The company reported revenue of $1.98 billion for the quarter, beating the consensus estimate of $1.85 billion by about 8.7%. On the bottom line, adjusted EPS came in at $2.80, ahead of the $2.55 forecast. Revenue grew 12% on a constant-currency basis, well above the company’s own mid-single-digit guidance.

The star of the quarter was China. CEO Patrice Louvet said China delivered “exceptionally strong” results during the Lunar New Year, with sales up more than 50% in the country. That figure stood out at a time when many investors have been watching Chinese luxury spending closely after signs of strain in recent months.

Asia led regional growth overall, and the results put Ralph Lauren in a different position from some peers. LVMH, widely seen as a bellwether for global luxury, reported just 1% adjusted sales growth last month and said the war in Iran shaved at least a percentage point off global sales.

The jump put RL on track for its largest single-day gain since April 2025.

Europe Raises Some Caution Flags

Not everything was straightforward. While Ralph Lauren reported double-digit revenue growth in Europe to $620 million, management took a cautious tone on the region’s near-term outlook.

Louvet flagged that a drop in Middle East tourism to Europe and pressure on European consumer wallets could weigh on results going forward. “We are taking a more prudent view of the Europe operating environment looking ahead,” he said on the analyst call.

The company said its annual guidance does not factor in any potential impact from tariff refunds.

For the current quarter ending in June, Ralph Lauren expects revenue to rise in the mid- to high-single digits on a constant currency basis, roughly in line with the 6.9% analyst estimate. Full-year constant currency growth is expected around 4% to 5%.

UBS Lifts Price Target to $511

Following the results, UBS raised its price target on RL to $511 from $480, keeping its Buy rating. The firm said it expects Ralph Lauren to deliver positive EPS surprises that will drive upward revisions to sell-side estimates and push the stock’s P/E multiple higher.

UBS said the stock looks inexpensive at roughly 18.5 times its fiscal year two EPS estimate, given the company’s roughly 14% five-year EPS compound annual growth rate. The firm said the Q4 results reinforced its conviction.

Needham also raised its price target, moving from $400 to $405 with a Buy rating.

Nine analysts, according to InvestingPro data, had already revised earnings estimates upward for the upcoming period ahead of the print. The company’s gross profit margin stands at 69.65%, and diluted EPS over the last twelve months was $14.66.

Ralph Lauren’s brand strength across price points — from $118 polo shirts to $498 leather bags — has helped it hold a broader consumer base than many pure luxury rivals, analysts have noted.