Ralph Lauren Corporation RL is set to report fourth-quarter fiscal 2026 results results on May 21, before market open. The Zacks Consensus Estimate for revenues is pegged at $1.84 billion, which indicates an increase of 8.3% from the year-ago quarter’s figure.
The consensus estimate for earnings is pegged at $2.50 per share, which indicates growth of 10.1% from the year-earlier actual. The consensus mark for earnings has moved up a penny in the past seven days.
In the last reported quarter, the company’s bottom line surpassed the Zacks Consensus Estimate by 7.2%. Ralph Lauren has a trailing four-quarter earnings surprise of 9.7%, on average.
Factors Likely to Have Impacted RL’s Q4 Performance
Ralph Lauren’s quarterly performance is likely to have reflected gains from its strong brand recognition, broad product portfolio and expanding e-commerce operations, all of which have helped strengthen its position. The company’s expanding store network, along with continued investments in innovation and AI integration, highlights its efforts to stay competitive in the rapidly evolving retail landscape and drive growth.
The company’s “Next Great Chapter” initiative has strategically positioned it for success. This initiative aims to bolster the company’s core business and prepare it to seize market opportunities. Ralph Lauren has been experiencing growth in its digital and omnichannel business, significantly increasing customer acquisition and loyalty. Retail and wholesale divisions have been the key pillars, with flagship stores, premium distribution and partnerships expected to have boosted comparable store sales (comps). The Zacks Consensus Estimate for comps growth stands at 10.5% for the quarter. The consensus mark for RL’s retail and wholesale revenues stands at $1.2 billion and $633 million, respectively, up 9.1% and 5% year over year.
It is making significant progress through investments in mobile, omnichannel and fulfillment. The company’s digital strength enables the brand to deepen engagement and expand its reach globally. Digital sales represent a growing share of total revenues, supported by continuous investments in personalization, enhanced mobile capabilities and integrated loyalty programs designed to connect with younger and more diverse consumers. Such positives are expected to reflect in its top and bottom-line results in the quarter under review.
On the flip side, management had been cautious on the North American operating backdrop. It had earlier projected Q4 revenue growth to be moderate on a sequential basis, reflecting its planned strategic reductions in off-price wholesale and later timing of spring receipts. Management had further anticipated a decline in fourth-quarter gross and operating margins, due to elevated tariffs, timing of marketing campaigns and timing shifts. The company is also witnessing elevated operating expenses due to investments in brand activations, technology, digital acceleration and store expansions.
Ralph Lauren Corporation Price and EPS Surprise
Ralph Lauren Corporation price-eps-surprise | Ralph Lauren Corporation Quote
What the Zacks Model Unveils for RL
Our proven model conclusively predicts an earnings beat for Ralph Lauren this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Ralph Lauren currently has an Earnings ESP of +0.65% and a Zacks Rank of 3.
Valuation Picture of RL Stock
Going by the price/earnings ratio, RL stock is currently trading at 17.85 on a forward 12-month basis, higher than 16.33 of the Textile - Apparel industry. The stock boasts a high of 24.74.
The recent market movements show that RL’s shares have risen 17.7% in the past year against the industry's 24.5% decline.
More Stocks With the Favorable Combination
Here are three more companies, which according to our model, also have the right combination of elements to beat on earnings this reporting cycle:
Hasbro, Inc. HAS currently has an Earnings ESP of +7.14% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for first-quarter 2026 earnings per share is pegged at $1.12, up 7.7% year over year. Hasbro’s top line is also expected to have increased year over year. The consensus estimate for quarterly revenues is pegged at $984.2 million, which indicates an increase of almost 11% from the figure reported in the prior-year quarter. HAS delivered a trailing four-quarter earnings surprise of 43.9%, on average.
lululemon athletica inc. LULU currently has an Earnings ESP of +0.47% and a Zacks Rank of 3. The company is likely to register top-line growth when it reports first-quarter fiscal 2026 numbers. The Zacks Consensus Estimate for LULU’s quarterly earnings per share of $1.69 indicates a decrease of 35% year over year.
LULU has a trailing four-quarter earnings surprise of 7.9%, on average. The consensus estimate for LULU’s quarterly revenues is pegged at $2.44 billion, indicating a rise of 2.8% from the figure reported in the prior-year quarter.
PVH Corp. PVH currently has an Earnings ESP of +0.18% and a Zacks Rank of 3. The company is likely to register top-line growth when it reports first-quarter fiscal 2026 numbers. The Zacks Consensus Estimate for PVH’s quarterly earnings per share of $1.80 indicates a decrease of 21.7% year over year.
PVH has a trailing four-quarter earnings surprise of 14.2%, on average. The consensus estimate for PVH’s quarterly revenues is pegged at $2.00 billion, indicating a rise of 0.7% from the figure reported in the prior-year quarter.
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Hasbro, Inc. (HAS): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).