Ralph Lauren jumps after beating quarterly estimates on strong demand

Ralph Lauren shares rose as much as 8% to $411.19 after the high-end apparel seller beat first-quarter revenue and profit estimates on resilient demand from young and affluent shoppers for its high-priced collections.

The company reported first-quarter revenue of $1.96 billion and adjusted earnings per share of $4.59, beating analysts' estimates of $1.87 billion and $4.32, respectively, according to data compiled by LSEG.

Ralph Lauren raised its fiscal 2027 revenue growth forecast to 5% to 6% from a prior view of 4% to 5%.

CFO Justin Picicci said the company plans to accelerate the reduction of off-price sales and abandon lower-tier full-price stores in the second half.

Morningstar analyst David Swartz said Ralph Lauren's accessible luxury niche is in better shape than pure luxury, adding that others raised prices too much and lost customers to lower-priced alternatives like Ralph Lauren and Coach.

As of the last close, RL was up about 8% year to date.