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Ralph Lauren Sees Revenue Growth Slowdown, Tops Fiscal Fourth-Quarter Views

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Ralph Lauren Sees Revenue Growth Slowdown, Tops Fiscal Fourth-Quarter Views

Ralph Lauren (RL) outlined a full-year revenue guidance that implied a slowdown annually, while the luxury apparel maker reported better-than-expected fiscal fourth-quarter results.

The company said Thursday it expects fiscal 2027 revenue to rise by roughly mid-single-digits year over year, centered around 4% to 5% in constant currency terms. Sales, excluding the impact of foreign exchange, increased 12% in the year to March 28.

The consensus on FactSet is for reported sales of $8.45 billion.

"While our core consumer has remained resilient exiting fiscal 2026 and into the start of fiscal 2027, our outlook reflects prudence around consumer demand as well as modest cost pressure related to recent energy price volatility," Chief Financial Officer Justin Picicci said on a conference call, according to a FactSet transcript.

Energy prices have surged since the US and Israel attacked Iran at the end of February, with the crucial Strait of Hormuz effectively shut. A fragile ceasefire between Washington and Tehran continues to hold, though the two sides are yet to agree on a framework for a peace deal.

Adjusted EPS climbed to $2.80 for the fiscal fourth quarter from $2.27 a year earlier, surpassing the Street's view for $2.55. Reported revenue grew 17% to $1.98 billion, ahead of the average analyst estimate of $1.85 billion. Excluding foreign exchange tailwinds, sales advanced 12%.

Ralph Lauren's shares rallied nearly 11% in Thursday trade, turning a gain for the year so far.

Reported sales rose 8% in North America to $762.7 million, while Europe and Asia logged gains of 18% and 31%, respectively. Comparable store sales increased 16% in North America, 5% in Europe and 25% in Asia, all at constant currencies.

For the current three-month period, Ralph Lauren expects revenue to increase by roughly mid- to high-single-digits from the prior-year quarter on a constant currency basis. The Street is looking for $1.84 billion in reported sales.

"We remain focused on driving our multiple engines of growth while continuing to lay the groundwork for sustainable growth and value creation," Chief Executive Patrice Louvet said in a statement.

Price: $357.89, Change: $+28.65, Percent Change: +8.70%

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