Ralph Lauren Corp (NYSE:RL) shares surged nearly 12% on Thursday after the high-end apparel maker reported fourth-quarter fiscal 2026 revenue and profit that topped analyst expectations, signaling resilient consumer appetite for premium fashion amid ongoing tariff uncertainty.
The company posted revenue of $1.98 billion, ahead of analyst estimates of roughly $1.85 billion, while adjusted earnings per share came in at $2.80, beating the consensus forecast of approximately $2.55
Regional performance was broad-based. North America comparable sales accelerated to 16% from 7% in the third quarter, while Europe rebounded to 5% comparable growth from flat in the prior quarter, a recovery investors had been closely watching. Asia remained the standout, rising 28% in constant currency and accelerating from 22% in the third quarter.
Direct-to-consumer average unit retail prices climbed at a mid-teens rate, supported by product elevation, favorable mix and reduced promotional activity. Jefferies called the quarter a strong beat and said it is biased toward upside to fiscal 2027 guidance based on business momentum and the levers available to management. For fiscal 2027, Ralph Lauren guided revenue growth of mid-single digits in constant currency, centered on 4% to 5%, with operating margin expansion of 40 to 60 basis points.