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

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