Update shared on19 Sep 2025
Fair value Increased 1.45%Analysts raised their price target for Ralph Lauren to $345.74, citing strong operating momentum, impressive execution of brand-elevation strategies, continued topline growth, and robust management performance, while acknowledging that conservative guidance may offer further upside potential.
Analyst Commentary
- Bullish analysts cite continued operating momentum and strong visibility into topline growth potential, supported by recent upside in EPS, revenue, and gross margin performance.
- The company's multi-year brand-elevation strategy and growth initiatives are seen as robust, with brand strength reinforced by high-profile celebrity endorsements and broad-based momentum.
- Medium-term and FY26 guidance are viewed as conservative, positioning Ralph Lauren for potential beat-and-raise quarters if execution continues.
- Stable execution during volatile retail market conditions and a leading position in merchandising, design, marketing, and a DTC-led strategy contribute to confidence in management and future profitability.
- Bearish analysts express caution by modestly lowering price targets due to perceived conservatism in three-year growth plans, but still acknowledge Ralph Lauren's ability to drive profitable growth and margin expansion.
What's in the News
- Ralph Lauren reiterated its Fiscal 2026 guidance, expecting Q2 2026 revenues to grow high-single digits and operating margin to expand 120-160 basis points, driven by expense leverage.
- Full-year Fiscal 2026 guidance was raised, with revenues expected to increase low- to mid-single digits and operating margin to expand 40-60 basis points, up from the prior outlook.
- The company repurchased 1,162,254 shares for $250.07 million, completing 34.1% of its buyback program.
- Launched the limited-edition Polo Ralph Lauren for Oak Bluffs collection, emphasizing heritage, HBCU partnerships, and community initiatives.
- Ralph Lauren was added to multiple Russell growth indices, including the Russell 1000, 2500, 3000, and Midcap Growth Indices.
Valuation Changes
Summary of Valuation Changes for Ralph Lauren
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $340.81 to $345.74.
- The Net Profit Margin for Ralph Lauren remained effectively unchanged, moving only marginally from 12.12% to 12.26%.
- The Future P/E for Ralph Lauren remained effectively unchanged, moving only marginally from 24.03x to 24.13x.
Disclaimer
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