Ralph Lauren shares fall as quarterly revenue forecast disappoints
RL•Ralph Lauren shares fell 7% in premarket trading after it forecast third-quarter revenue growth of 3% to 4%, below analysts’ 4.2% estimate. It raised its fiscal 2027 revenue growth outlook to 6% to 7% and reported second-quarter revenue of $2.19 billion and adjusted earnings per share of $4.64, both above estimates.
1. Quarterly forecast misses estimates
Ralph Lauren expects third-quarter revenue to grow 3% to 4%, largely below analysts’ expectation of 4.2%, citing the timing of wholesale shipments and fewer off-price sales. Its shares fell 7% in premarket trading.
2. Annual outlook raised
The company now expects fiscal 2027 revenue to rise 6% to 7%, compared with its previous outlook of 5% to 6%. It expects annual operating margin to grow 80 to 100 basis points on a constant-currency basis, up from its prior forecast of 60 to 80 basis points.
3. Second-quarter results beat estimates
Second-quarter revenue rose 9% to $2.19 billion, above analysts’ estimate of $2.12 billion, while adjusted earnings per share of $4.64 beat the $4.26 estimate. Revenue in China rose 35% in the second quarter.
