Ralph Lauren Corporation (RL) delivered a strong performance in its second quarter, exceeding analysts’ expectations on both earnings and revenue fronts. The luxury fashion house reported adjusted earnings per share of $2.54, surpassing the consensus estimate of $2.41. Revenue for the quarter reached $1.726 billion, outperforming the street’s forecast of $1.677 billion.
This positive performance was driven by the resilience of the company’s diverse growth strategies and a loyal customer base, according to Patrice Louvet, President and Chief Executive Officer. Louvet expressed confidence in Ralph Lauren’s ability to maintain momentum heading into the crucial holiday season.
Looking ahead, Ralph Lauren anticipates constant currency revenue growth of approximately 3% to 4% in the third quarter. The company also expects foreign currency to contribute positively to revenue growth by 10 to 50 basis points.
Following the strong earnings announcement, analysts adjusted their price targets on Ralph Lauren stock, reflecting their bullish outlook. TD Cowen’s John Kernan maintained a Buy rating and raised the price target from $251 to $258. Similarly, UBS analyst Jay Sole also kept a Buy rating while increasing the price target from $287 to $300.
Raymond James analyst Rick Patel maintained an Outperform rating and raised the price target from $215 to $235. Barclays analyst Adrienne Yih also maintained an Overweight rating, boosting the price target from $200 to $257.
The positive sentiment surrounding Ralph Lauren reflects its strong performance, diversification across geographies, and promising outlook. As the holiday season approaches, investors will be watching closely to see how the company’s performance unfolds.
