Ralph Lauren stock climbed modestly on Thursday, near potential entries, after the premium apparel retailer cleared estimates for Q4 results. Shares are working toward a buy point around record highs.
Ralph Lauren reported a 33% increase in adjusted earnings per share to $2.27 per share. Revenue increased 8% to $1.697 billion. FactSet expected earnings of $2.04 per share adjusted on $1.649 billion in revenue.
Total comparable sales increased 13% for the quarter, greatly outpacing the 6.1% comparable sales growth that analysts expected.
CEO Patrice Louvet said that Ralph Lauren expects to "remain on offense" in 2026 and will focus on multiple engines of growth across its lifestyle categories, geographies and channels. The company says it will remain agile and lean into its diversified supply chain, operating discipline and strong balance sheet to navigate the current macroeconomic uncertainty.
Ralph Lauren also expects to expand its operating margin modestly, while including President Donald Trump's tariffs. However, the retailer said it is offering only a preliminary outlook due to ongoing trade negotiations. Other weighing factors include inflationary pressures, supply chain disruptions and consumer-spending headwinds.
Ralph Lauren expects Q1 revenue to increase in the high single digits, while the company's operating margin expands by 150 to 200 basis points.
FactSet analysts forecast Q1 earnings increase about 13% to $3.05 per share on 5.2% revenue growth to $1.59 billion.
Retail Leader Vaults Above Buy Point On Strong Earnings
Ralph Lauren Stock Eyes A Buy Point
RL stock rose 1.3% to 277.42 on Thursday.
Shares are working toward a 289.33 buy point for a 15 week cup base. The entry matches Ralph Lauren's record high from Feb. 6. Investors could use Tuesday's intraday high of 283.68 as an early entry.
Ralph Lauren stock closed Wednesday more than 20% above its 50-day moving average, so a handle or longer pause would be constructive.
Ralph Lauren has rallied more than 57% from its April 9 low and has a year-to-date gain of 20%.
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