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Ralph Lauren Corporation (RL), headquartered in New York, designs, sells, and distributes luxury lifestyle products. Valued at $14.9 billion by market cap, the company provides luxury products such as apparel, footwear, accessories, home goods, fragrances, and hospitality services under iconic brands like Polo Ralph Lauren, Ralph Lauren Collection, and Double RL. The leading luxury lifestyle company is expected to announce its fiscal third-quarter earnings for 2025 before the market opens on Thursday, Feb. 6.
Ahead of the event, analysts expect RL to report a profit of $4.48 per share on a diluted basis, up 7.4% from $4.17 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect RL to report EPS of $11.75, up 14% from $10.31 in fiscal 2024. Its EPS is expected to rise 10.9% year over year to $13.03 in fiscal 2026.
RL stock has outperformed the S&P 500’s ($SPX) 26.5% gains over the past 52 weeks, with shares up 75.7% during this period. Similarly, it outperformed the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 33.1% gains over the same time frame.
RL's outperformance is fueled by its strong global brand reputation, strategic investments, successful execution of its "Accelerate Plan," and success in its direct-to-consumer (DTC) channel, effectively engaging with consumers. Its focus on product enhancements, personalized promotions, and efficient inventory management, combined with its digital expansion and fulfillment investments in omnichannel capabilities have boosted its online business, driving growth.
On Nov. 7, RL shares closed up more than 6% after reporting its Q2 results. The company’s revenue was $1.73 billion, beating Wall Street forecasts of $1.67 billion. Its adjusted EPS of $2.54, surpassed analyst estimates of $2.43.
Analysts’ consensus opinion on RL stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 16 analysts covering the stock, 11 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” three give a “Hold,” and one recommends a “Strong Sell.” RL’s average analyst price target is $246.06, indicating a potential upside of 2.3% from the current levels.
