Ralph Lauren shares surged 5.04% in pre-market trading after the luxury fashion house reported fiscal first-quarter results that handily beat Wall Street estimates, buoyed by robust sales growth across both direct-to-consumer and wholesale channels.
The company posted adjusted earnings per share of USD 4.59, comfortably exceeding the consensus estimate of USD 4.32. Revenue reached USD 2,000 million, topping the IBES estimate of USD 1,867 million. Gross margin expanded to 73.7% and operating margin stood at 17.5%, reflecting strong pricing power and operational efficiency. Global direct-to-consumer comparable sales rose by low-double-digits, while wholesale sales climbed mid-teens.
Looking ahead, Ralph Lauren provided an optimistic forecast, expecting constant currency revenue growth of 5% to 6% for fiscal 2027 and approximately mid-single digit growth centered around 5% to 6% for the second quarter. The encouraging outlook further fueled investor confidence in the brand's momentum.