Shares of Ralph Lauren Corp RL came under pressure, despite the company Thursday reporting upbeat fiscal fourth-quarter results .
Analyst Matthew Boss reiterated an Overweight rating, while raising the price target from $342 to $355.
Ralph Lauren reported quarterly earnings of $2.27 per share, beating Street expectations of $2.00 per share, driven by 10.4% revenue growth in constant currency terms, which came in higher than management's 6%-7% guidance, Boss said in a note. The company's adjusted gross margins expanded by 210 basis points (bps) to 68.7%, he added.
Management indicated that there has not been ⁘any slowdown in any region globally to date through May,⁘ without even a single cancelation from any wholesale partner, the analyst stated. The company's preliminary fiscal 2026 guidance ⁘embeds a 100bp+ headwind from tariffs by our math,⁘ he further wrote.
Ralph Lauren delivered a ⁘broad-based⁘ beat in the quarter on the back of ⁘continued brand momentum, product execution, and margin delivery,⁘ Roach said. The results were healthy, especially given elevated expectations, he added.
Management's fiscal 2026 outlook calls for low-single-digit ex-FX growth, with first-quarter guidance ahead of expectations and some operating margin expansion, the analyst stated. ⁘Within this, the company is taking a more cautious view on 2H amidst macro uncertainty and potential tariff-related pressures, particularly in North America,⁘ he further wrote.
RL Price Action: Shares of Ralph Lauren had declined by 1.19% to $274.12 at the time of publication on Friday.
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