Ralph Lauren Corporation: 1Q Beat & Raise w/ Buckets of Incremental Upside; CFO Follow-Up Takes; OW Raising PT to $463

研报英文原文证据摘录

J P M O R G A N

North America Equity Research

06 August 2026

Ralph Lauren Corporation

1Q Beat & Raise w/ Buckets of Incremental Upside;

CFO Follow-Up Takes; OW Raising PT to $463

Overweight

RL, RL US

Price (05 Aug 26):$380.78

▲Price Target (Dec-27):$463.00

Prior (Dec-27):$452.00

I. 1Q Top/Bottom-Line Beat Above Consensus: RL reported 1Q adj. EPS of

$4.59 (above Consensus $4.32) based on +13.4% revenue growth c/c

(exceeding our previewed +9.5% c/c forecast, Consensus +7.9%, and

roughly doubling mgmt’s +mid-to-high-single-digit growth outlook) and

operating margin expansion of +163bps to 18.7% (> Street 18.4%).

Consistent 2-Yr Stacked DTC Comp Momentum Maintained: DTC samestore-sales grew +12.0% c/c (above our raised +9.5% c/c forecast & Street

+7.8%), translating to a 2-year stack of +25.0% (consistent with 2H26’s

+25.5% 2-yr stacked growth), and supported by global AUR growth +15%

c/c reflecting continued brand elevation and strong full-price selling trends,

with lower than planned promotions.

N/A and Asia Driven Comp Outperformance…: Consistent with

our previewed expectations – N. America and Asia drove outperformance

relative to mgmt’s plan & Consensus, including N/A SSS +9% (> Street

+6.7%) and Asia +23% (well-above Street +12.6%). Both regions also

showed consistency on a 2-yr stacked basis, including N/A +21% 2-yr

stacked comps (vs. 2H26’s +20% 2-yr stack) and Asia +41% 2-yr stacked

comps (> 2H26’s +37% 2-yr stack).

…With Europe “On Internal Plan”: Europe DTC comps grew

+1.0%, consistent with mgmt’s internal plan, with a slight increase in

brick/mortar stores and +6% growth in ecommerce, and representing a 2-yr

stacked comp of +11% relative to 2H26 +20%, and mgmt citing

outperformance against market trends with increased conversion rates &

basket sizes supported by the brand elevation strategy, despite store traffic

impacted by the broader macro environment.

Gross Margin Driven Beat On AUR Upside: RL reported 1Q GPM

expansion of +140bps Y/Y to 73.7% (above Street 73.3%) driven by aboveplan AUR growth (+15% double mgmt’s +HSD% outlook), favorable

channel, and geographic mix shifts, more than offsetting incremental pressure

…