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Ralph Lauren Corporation (RL) is a prominent American fashion and lifestyle company headquartered in New York City. Its market capitalization stands at $17.8 billion, reflecting strong growth and investor confidence. Operating within the consumer discretionary sector, Ralph Lauren is a key player in the apparel manufacturing, particularly in the luxury and lifestyle segments.
Ralph Lauren’s stock story this year is like a runway success. Its shares rose 26.9% on a year-to-date (YTD) basis, outshining the S&P 500 Index’s ($SPX) 9.9% gains over the same stretch. Over the past 52 weeks, RL stock has soared 71.3%, compared to the SPX’s 15.1% gain, leaving the benchmark far behind.
Zooming in further, Ralph Lauren’s performance similarly stands out within the sector. The Consumer Discretionary Select Sector SPDR Fund (XLY) is up 25.4% over the past year and 4.2% in 2025, trailing behind RL stock.
The stock’s momentum can be attributed to a combination of strategic brand elevation, solid financial results, and strong consumer demand for its elevated-luxury positioning. In Q1 of fiscal 2026, released on Aug. 7, the company reported adjusted EPS of $3.77 - up 40% year-over-year (YoY) and beating Street’s estimates. Revenue grew 14% annually to $1.7 billion, led by a 21% jump in sales in Asia, including over 30% annual growth in China.
These results prompted an upward revision of full-year revenue guidance to low- to mid-single-digit growth. Also, Ralph Lauren’s brand elevation strategy and international expansion played a pivotal role.
For the current fiscal year, ending in March 2026, analysts expect Ralph Lauren to report EPS growth of 19.8% YoY to $14.77, on a diluted basis. The company has a stellar history of surpassing consensus EPS estimates. It has topped the Street’s bottom-line estimates in each of the past four quarters.
Wall Street sentiment toward RL stock remains positive, but slightly more bullish than a month back. The stock has a consensus rating of “Strong Buy,” an upgrade from the “Moderate Buy” rating. Of the 19 analysts offering recommendations currently, 14 are highly bullish, advising a “Strong Buy,” one suggests a “Moderate Buy,” three maintain a “Hold,” and the remaining one has a “Strong Sell” rating.
The upgrade over the past month reflects growing bullish conviction – the number of “Strong Buy” recommendations has ticked up from 13 to 14, while “Moderate Sell” ratings have vanished entirely. Analysts are increasingly confident in RL, signaling optimism about the company’s momentum and market positioning.
Earlier this month, UBS raised RL’s price target to $404 from $385 while reiterating a “Buy” rating. The brokerage firm cited potential EPS surprises and upward estimate revisions. UBS views the shares as attractively valued, supported by strong margins, brand transformation, and upcoming catalysts, such as September’s Investor Day.
Meanwhile, the mean price target of $330.41 represents a premium of 12.7% to RL’s current price. The Street-high price target of $423 suggests an upside potential of 44.3%.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
