Ralph Lauren stock: strong performance and bullish analyst outlook
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Stock Performance vs. Broader Market
Ralph Lauren RL has significantly outperformed the market over the past year, gaining 46.3% YoY and 19.3% YTD.
The S&P 500 Index (SPX) rose 17.6% YoY and 1.7% in 2025.
RL has also beaten the Consumer Discretionary Select Sector (XLY), which gained 20% YoY but dipped 3% YTD.
Q3 Financials Show Strong Growth
RL stock surged 9.7% after Q3 results on February 6.
Revenue rose 10.8% YoY to $2.1 billion, exceeding expectations of $2 billion.
Gross margin expanded 190 basis points to 68.4%, with gross profits up 14% YoY to $1.5 billion.
Adjusted net income increased 12% YoY to $307.9 million, with EPS of $4.82 beating estimates by 7.6%.
Analysts expect 16.5% EPS growth in fiscal 2025, reaching $12.01 per share.
Wall Street’s Consensus: Moderate Buy
Among 18 analysts covering RL, the consensus rating is “Moderate Buy”.
Ratings breakdown:
12 “Strong Buy”, 1 “Moderate Buy”, 4 “Hold”, 1 “Strong Sell”.
This is more bullish than three months ago, when only 10 analysts rated it a "Strong Buy".
Price Targets Indicate Upside Potential
RL’s mean price target is $299.41, suggesting an 8.6% upside from current levels.
The highest price target is $348, implying a 26.2% upside potential.
Needham analyst Tom Nikic initiated coverage with a “Buy” rating and a $310 target.
Final Verdict: Bullish Outlook for Ralph Lauren
Ralph Lauren’s strong earnings growth, expanding margins, and global sales momentum support its bullish outlook Wall Street’s price targets suggest further upside, making RL an attractive consumer discretionary stock.
Ralph Lauren RL has significantly outperformed the market over the past year, gaining 46.3% YoY and 19.3% YTD.
The S&P 500 Index (SPX) rose 17.6% YoY and 1.7% in 2025.
RL has also beaten the Consumer Discretionary Select Sector (XLY), which gained 20% YoY but dipped 3% YTD.
Q3 Financials Show Strong Growth
RL stock surged 9.7% after Q3 results on February 6.
Revenue rose 10.8% YoY to $2.1 billion, exceeding expectations of $2 billion.
Gross margin expanded 190 basis points to 68.4%, with gross profits up 14% YoY to $1.5 billion.
Adjusted net income increased 12% YoY to $307.9 million, with EPS of $4.82 beating estimates by 7.6%.
Analysts expect 16.5% EPS growth in fiscal 2025, reaching $12.01 per share.
Wall Street’s Consensus: Moderate Buy
Among 18 analysts covering RL, the consensus rating is “Moderate Buy”.
Ratings breakdown:
12 “Strong Buy”, 1 “Moderate Buy”, 4 “Hold”, 1 “Strong Sell”.
This is more bullish than three months ago, when only 10 analysts rated it a "Strong Buy".
Price Targets Indicate Upside Potential
RL’s mean price target is $299.41, suggesting an 8.6% upside from current levels.
The highest price target is $348, implying a 26.2% upside potential.
Needham analyst Tom Nikic initiated coverage with a “Buy” rating and a $310 target.
Final Verdict: Bullish Outlook for Ralph Lauren
Ralph Lauren’s strong earnings growth, expanding margins, and global sales momentum support its bullish outlook Wall Street’s price targets suggest further upside, making RL an attractive consumer discretionary stock.