Ralph Lauren Forecasts 11.7% Revenue Growth and 140bps Operating Margin Gain

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Ralph Lauren’s “Next Great Chapter: Drive Plan” has spurred digital transformation and brand elevation, boosting personalization, mobile and omnichannel engagement. For fiscal 2026, RL forecasts high-single to low-double digit revenue growth, 40–80 basis points gross margin expansion, 100–140 basis points operating margin improvement, and 11.7% sales gains.

1. Next Great Chapter: Drive Plan Execution

Ralph Lauren’s Next Great Chapter: Drive Plan focuses on elevating its flagship brand through consumer centricity and operational agility. Investments in personalized digital platforms, mobile apps, omnichannel fulfillment and strategic wholesale partnerships have strengthened engagement across North America, Europe and Asia.

2. Fiscal 2026 Financial Outlook

RL projects revenue growth in the high-single to low-double digits on a constant currency basis for fiscal 2026. Management expects gross margins to widen by 40–80 basis points and operating margins to improve by 100–140 basis points, driven by cost efficiencies and higher full-price selling.

3. Analyst Estimates and Price Targets

Analysts rate RL with a strong buy ranking and have raised the consensus earnings estimate by 5% over the past 30 days. The short-term average price target implies an 11.8% upside, with a range of $341 to $477, signaling potential gains up to 29.2% against downside of 7.6%.

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