Ralph Lauren Corporation 4Q Material Beat w/ FY27 Algo The “Starting Point”; OW w/ PT $434

研报英文原文证据摘录

Ralph Lauren Corporation 4Q Material Beat w/ FY27 Algo The “Starting Point”; OW w/ PT $434

o impact to current consumer behavior to date has been

observed), in addition to (ii) softer Middle East tourism related traffic in N/A and

Europe. As a result, management’s outlook reflects a slightly-below algorithm

forecast in Europe (+LSD-MSD% < +MSD% algorithm), while N/A and Asia

remain “on algorithm”.

• Taking this a step further – our math points to potential FY27 revenue growth

upside opportunity of +LDD% (> +4-5% c/c 52-week guidance) assuming

sustained 2-yr stacks c/c stacks from 2H26 (= 22% 2-yr stacked c/c revenue

growth) throughout FY27 and removing the “prudent” macro haircut related to

Europe on our estimates.

• To that end, CEO Louvet cited “we are not, to your question specifically on consumer

changes, our core consumer continues to be resilient. That is true across all three

regions, and we're very encouraged by the underlying growth rates that we're

seeing across EMEA and North America and APAC” with durability of revenue

growth in our view supported by (i) new customer acquisition, (notably among more

elevated, younger, less price sensitive consumers), (ii) strong value proposition (with

RL brand equity scores continuing to increase as the brand has elevated), and (iii)

breadth of category growth (notably with high potential categories growing more

than 20% in 4Q in addition to the Core +mid-teens).

• Further on the bottom-line, management’s outlook reflects reported and constant-

currency operating margins of 16.5% (above Street 16.4%), with the 16.5% margin

rate ~100bps above mgmt’s initial Sept ’25 operating margin target of 15.0-15.5%

c/c by FY28. To that end, management continues to see durability behind bottom-line