By Kit Norton
Shares of Ralph Lauren soared Thursday after the luxury retailer reported better-than-expected fiscal fourth-quarter earnings and issued solid fiscal 2027 revenue guidance.
Ralph Lauren stock jumped 11% to $363.37 on Thursday, leading the S&P 500 for the trading session and putting it on pace for its best daily percentage gain in more than a year, according to Dow Jones Market Data.
Guggenheim analyst Simeon Siegel wrote Thursday that Ralph Lauren's "strong top and bottom line beat" are positives for the stock.
"We have been fielding an uptick of what we believe were increasingly negative investor sentiment into results," Siegel wrote.
Siegel added that he expects "shares to respond well to the strength of today's ongoing results, with investors likely to subsequently return to questioning what is necessary to take shares meaningful higher from here."
The luxury retailer on Thursday posted adjusted earnings of $2.80 a share for the quarter ended March 28. That compares to $2.27 a share in profit a year ago and well above Wall Street' estimates of $2.55.
Ralph Lauren reported quarterly revenue grew 16% to $1.98 billion, beating the analyst consensus call for $1.85 billion, according to FactSet.
The company also announced a 10% increase to its quarterly dividend to $1 a share.
Looking ahead, Ralph Lauren forecasts fiscal first-quarter sales rising in the mid-to-high-single digit percentages. For the full-fiscal year, the retailer expects 4% to 5% revenue growth, inline with Wall Street's predictions.
"We remain focused on driving our multiple engines of growth while continuing to lay the groundwork for sustainable growth and value creation into the future," CEO Patrice Louvet said in the earnings release.
Overall, Ralph Lauren stock has risen just 2.5% in 2026, underperforming the S&P 500 index's 8% gain. However, Wall Street broadly remains bullish on the stock.
Of the 21 analysts polled by FactSet, Ralph Lauren stock has an average Overweight rating with a $429.64 price target. That average price target implies 18% upside from current trading levels.
Write to Kit Norton at kit.norton@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
May 21, 2026 10:55 ET (14:55 GMT)
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