Update shared on04 Sep 2025
Despite valuation-driven price target recalibrations, analysts remain bullish on Ralph Lauren due to strong brand momentum, robust financial outperformance, and ongoing global execution, resulting in the consensus analyst price target holding steady at $339.24.
Analyst Commentary
- Bullish analysts cite strong brand momentum, reinforced by high-profile celebrity endorsements and cultural relevance as seen with Taylor Swift and Travis Kelce.
- Ralph Lauren reported significant financial outperformance, including 13.7% revenue growth and 180bps gross margin expansion, with Q1 EPS 8% above consensus and no signs of business moderation.
- Continued global momentum and top-tier execution in merchandising, design, marketing, and direct-to-consumer strategy position Ralph Lauren as a leader in softlines retail.
- Certain price target reductions are attributed to valuation recalibration despite confidence in management quality, improved merchandising, and above-consensus multi-year estimates.
- Multiple analysts raise short- and long-term EPS estimates and maintain Buy/Overweight ratings, expecting continued sales and margin strength with visible upside potential.
What's in the News
- Ralph Lauren raised full-year fiscal 2026 guidance, now expecting low- to mid-single digit revenue growth and 40-60bps operating margin expansion, driven by operating expense leverage.
- The company expects high-single digit revenue growth and 120-160bps operating margin expansion for second quarter fiscal 2026, primarily from operating expense leverage.
- Repurchased 1.16 million shares for $250.07 million in the latest tranche, totaling 24.16 million shares (34.1% of shares) for $2.99 billion under its ongoing buyback program.
- Launched the Polo Ralph Lauren for Oak Bluffs collection, celebrating Black heritage and collegiate style, strengthening ties with HBCUs and related nonprofit initiatives.
- Added to multiple Russell growth indices, including Russell 1000 Growth, 2500 Growth, Midcap Growth, 3000 Growth, and 3000E Growth.
Valuation Changes
Summary of Valuation Changes for Ralph Lauren
- The Consensus Analyst Price Target remained effectively unchanged, at $339.24.
- The Consensus Revenue Growth forecasts for Ralph Lauren remained effectively unchanged, at 5.0% per annum.
- The Discount Rate for Ralph Lauren remained effectively unchanged, at 8.81%.
Disclaimer
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