Ralph Lauren (RL) Stock Forecast & Price Target

Ralph Lauren Corporation experienced a robust 18% increase in wholesale revenue, primarily driven by strong underlying demand and improved shipment timing, reflecting the company's effective distribution strategy. The addition of 1.5 million new direct-to-consumer shoppers year-over-year indicates growing consumer engagement with Ralph Lauren's core and high-potential product categories, such as women's apparel and handbags. Furthermore, with a projected expansion in operating margin and a notable increase in average unit retail (AUR) by 12%, the company appears well-positioned for sustained revenue growth and financial health in the coming years.

Ralph Lauren Corp. is experiencing significant pressure on its gross margins, particularly in the second half of the fiscal year, driven by external factors such as tariffs and challenging comparisons from the prior year. The company's outlook for North America, which constituted a substantial portion of its sales, reflects a cautious stance due to anticipated macroeconomic pressures and a tempered sales forecast for the back half of FY26. Although strategic reductions in off-price sales and encouraging sell-out trends have been noted, management remains apprehensive about potential consumer headwinds that could further impact financial performance.