Ralph Lauren (RL) Stock Forecast & Price Target

Ralph Lauren Corp. has demonstrated robust growth in its wholesale segment, achieving an 18% increase which reflects both strategic timing in shipment and strong underlying demand. The company has made significant strides in direct-to-consumer (DTC) engagement, gaining 1.5 million new DTC shoppers year-over-year, underscoring consumer preference for its core products and high-potential categories like women's apparel and handbags. Additionally, Ralph Lauren has improved its operating margin expectations to a 60-80 basis point expansion at constant currency, supported by expense leverage, while digital revenue has surged to approximately 26% of overall revenue, showcasing the brand's successful adaptation to changing consumer shopping behaviors.

Ralph Lauren Corp. is experiencing significant pressure on its gross margins due to tariffs and challenging year-over-year comparisons, particularly in the fiscal fourth quarter, which is projected to be the weakest sales period of the year. The company anticipates a decline in sales revenue, particularly in North America, where macroeconomic pressures and a cautious consumer mindset could result in only low-single-digit growth projections. Additionally, despite some encouraging trends, management's strategic reductions in off-price sales alongside the anticipated impact of retail price increases suggest a challenging outlook for the company's financial performance in the latter half of FY26.