Movement Alert|Ralph Lauren Rises 5.15% in Regular Trading, Q1 Earnings Beat Estimates with Full-Year Guidance Raised

Market Focus08-06

On August 6, Ralph Lauren rose 5.15% in regular trading, trading at $399.67/share, with turnover of $60.21 million. The move was driven by the company's FY2027 first fiscal quarter results released pre-market, which exceeded expectations across all key metrics, alongside an upward revision to full-year financial outlook.

Ralph Lauren reported adjusted EPS of $4.59, beating the consensus estimate of $4.32 by 6.25% and representing a 21.75% year-over-year increase. Revenue came in at $1.96 billion, surpassing the $1.867 billion estimate. Global DTC comparable sales grew low double digits, while wholesale revenue recorded mid-double-digit growth. The company simultaneously raised its full-year guidance while maintaining capital expenditure at 4%-5% of revenue.

Additionally, the CFO indicated plans to accelerate the strategic reduction of discount channel sales and exit lower-end full-price stores in H2, aiming to further elevate brand positioning. Heading into earnings, multiple institutions including JPMorgan, Goldman Sachs, UBS, and Wells Fargo had already raised their price targets, with the consensus rating at Overweight.

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