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New York-based Ralph Lauren Corporation (RL) designs, markets, and distributes lifestyle products. Its offerings include a range of men's, women's, and children's clothing, footwear and accessories. With a market cap of $17.2 billion, Ralph Lauren's operations span North America, Europe, Asia, and internationally.
Ralph Lauren has significantly outperformed the broader market over the past year. RL stock has soared 46.3% over the past year and 19.3% on a YTD basis, outpacing the S&P 500 Index’s ($SPX) 17.6% returns over the past year and 1.7% gains in 2025.
Zooming in further, RL has also outpaced the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 20% surge over the past year and a 3% dip in 2025.
Ralph Lauren’s stock soared 9.7% after the release of its impressive Q3 results on Feb. 6. Driven by strong sales growth in Asia and Europe and resilient performance in North America, the company’s overall topline increased 10.8% year-over-year to $2.1 billion, exceeding the Street’s expectations of $2 billion. Furthermore, RL observed a robust improvement in profitability, its gross margin expanded 190 basis points compared to the year-ago quarter to 68.4% and its gross profits increased 14% year-over-year to $1.5 billion. Meanwhile, its adjusted net income increased nearly 12% year-over-year to $307.9 million and its adjusted EPS of $4.82 surpassed the consensus estimates by 7.6%.
For the current fiscal 2025, ending next month, analysts expect RL to report a 16.5% year-over-year growth in adjusted earnings to $12.01 per share. Moreover, the company has a promising earnings surprise history. It has surpassed the Street’s bottom-line expectations in each of the past four quarters.
Among the 18 analysts covering the RL stock, the consensus rating is a “Moderate Buy.” That’s based on 12 “Strong Buy,” one “Moderate Buy,” four “Hold,” and one “Strong Sell” rating.
This configuration is slightly more bullish than three months ago when only 10 analysts gave “Strong Buy” recommendations.
On Feb. 12, Needham analyst Tom Nikic initiated RL’s coverage with a “Buy” rating and a price target of $310.
RL’s mean price target of $299.41 represents an 8.6% premium to current price levels, while its street-high target of $348 indicates a 26.2% upside potential.
