Ralph Lauren Reports Strong Q3 Earnings Despite Stock Drop
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Should l Buy RL?
Source: seekingalpha
Ralph Lauren's stock dropped 8.66% and hit a 20-day low amid broader market weakness, with the Nasdaq-100 down 1.28% and the S&P 500 down 0.94%.
Despite the stock decline, Ralph Lauren reported strong Q3 earnings, with a non-GAAP EPS of $6.22, exceeding expectations by $0.41. The company achieved $2.4 billion in revenue, a 12.1% year-over-year increase, reflecting robust consumer demand and brand appeal. Additionally, the company raised its revenue growth outlook for Fiscal 2026, indicating confidence in future performance.
The strong earnings performance highlights Ralph Lauren's resilience in a challenging economic environment, suggesting that the stock's decline may be a result of sector rotation rather than company-specific issues.
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Analyst Views on RL
Wall Street analysts forecast RL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RL is 401.85 USD with a low forecast of 305.00 USD and a high forecast of 473.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
12 Buy
2 Hold
0 Sell
Strong Buy
Current: 338.660
Low
305.00
Averages
401.85
High
473.00
Current: 338.660
Low
305.00
Averages
401.85
High
473.00
About RL
Ralph Lauren Corporation is engaged in the design, marketing, and distribution of luxury lifestyle products, including apparel, footwear and accessories, home, fragrances and hospitality. Its segments include North America, Europe, and Asia. Its brands include Ralph Lauren, Ralph Lauren Collection, Ralph Lauren Purple Label, Polo Ralph Lauren, Lauren Ralph Lauren, Polo Ralph Lauren Children, and Chaps, among others. Its products include apparel and footwear and accessories for men, women, and children, as well as fragrance and home collections, together with its hospitality portfolio. Its range of footwear and accessories include casual shoes, dress shoes, boots, sneakers, sandals, eyewear, watches, scarves, hats and others. Its range of home products includes bed and bath lines, lighting, dining, floor coverings, giftware and more. Its hospitality collection is comprised of its restaurants, including The Polo Bar in New York City, RL Restaurant located in Chicago, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- Market Sentiment Shift: Investor confidence in consumer goods weakened, leading to a drop in related stock prices, indicating concerns over future consumer spending that could impact corporate earnings outlook.
- Industry Impact: The decline in the consumer goods sector may trigger a ripple effect on the stock prices of related companies, especially amid increasing economic uncertainty, potentially leading to greater sales pressure on businesses.
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