We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
RL's Retail Comp Acceleration: What's Driving Its Q4 Performance?
Read MoreHide Full Article
Key Takeaways
Ralph Lauren's retail comparable sales rose 17% in Q4, accelerating from the prior quarter.
North America comps gained 16%, Asia rose 25% and Europe increased 5% despite tough comparisons.
Marketing activations and digital gains helped add 1.4 million new direct-to-consumer customers.
Ralph Lauren Corporation’s (RL - Free Report) retail business continued its momentum in fourth-quarter fiscal 2026, highlighting the strength of its brand elevation strategy and growing consumer appeal across key markets. The company has been steadily shifting toward higher-quality sales, attracting younger and less price-sensitive consumers while enhancing full-price selling. These efforts, combined with strong marketing activations and expanding digital capabilities, helped drive broad-based momentum across regions and channels.
The numbers tell a compelling story. Total company retail comparable sales rose 17% in the fourth quarter, accelerating from the prior quarter and building on a strong 13% increase in the year-ago period. North America retail comps jumped 16%, led by a 21% rise in digital comps, while Asia retail comps climbed 25% and Europe retail comps increased 5% despite tough comparisons. Direct-to-consumer revenues remained a key growth driver, with North America DTC sales advancing 14%, while Asia revenues climbed 28% and China sales surged more than 50% year over year.
Several factors fueled this retail acceleration. Ralph Lauren’s high-impact marketing campaigns, including Team USA’s Winter Olympics partnership, fashion presentations in New York, Milan and Paris, and Lunar New Year activations across Asia, strengthened brand engagement and customer acquisition. The company added 1.4 million new direct-to-consumer customers during the quarter, marking a low double-digit increase from the prior year. Continued gains in luxury perception, brand relevance and social media engagement further supported traffic and conversion across stores and digital channels.
Looking ahead, Ralph Lauren appears well positioned to sustain healthy retail momentum. Management remains focused on expanding its key city ecosystem strategy, enhancing customer experiences through AI-enabled tools and driving growth in high-potential categories such as women’s apparel, outerwear and handbags. While macroeconomic uncertainty persists in certain regions, the company’s resilient consumer base, strong brand equity and diversified growth drivers suggest that retail performance should remain a key contributor to growth in fiscal 2027.
RL’s Price Performance, Valuation & Estimates
Ralph Lauren’s shares have gained 19.1% in the past three months compared with the industry’s 0.1% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, RL trades at a forward price-to-earnings ratio of 21.70X compared with the industry’s average of 15.35X.
Image Source: Zacks Investment Research
Ralph Lauren currently carries a Zacks Rank #2 (Buy).
Other Key Picks in the Consumer Discretionary Space
The Zacks Consensus Estimate for COLM’s current financial-year sales is expected to rise 2.6% from the corresponding year-ago reported figure. COLM delivered a trailing four-quarter earnings surprise of 44.1%, on average.
Superior Group of Companies, Inc. (SGC - Free Report) produces, manufactures and sells promotional products and branded uniforms, and healthcare apparel and accessories in the United States and internationally. At present, SGC carries a Zacks Rank of 2.
The Zacks Consensus Estimate for current fiscal-year sales and earnings implies growth of 2% and 28.3%, respectively, from the year-ago reported figures. SGC delivered a trailing four-quarter negative earnings surprise of 81.9%, on average.
Carter’s, Inc. (CRI - Free Report) designs, sources and markets branded children's wear in the United States and internationally. At present, CRI has a Zacks Rank of 2.
The Zacks Consensus Estimate for current fiscal-year sales implies growth of 4.9%, and the same for earnings implies a decline of 10.9% from the year-ago figures. CRI delivered a trailing four-quarter negative earnings surprise of 100.8%, on average.
View the Zacks #1 Rank List
Image: Bigstock
RL's Retail Comp Acceleration: What's Driving Its Q4 Performance?
Key Takeaways
Ralph Lauren Corporation’s (RL - Free Report) retail business continued its momentum in fourth-quarter fiscal 2026, highlighting the strength of its brand elevation strategy and growing consumer appeal across key markets. The company has been steadily shifting toward higher-quality sales, attracting younger and less price-sensitive consumers while enhancing full-price selling. These efforts, combined with strong marketing activations and expanding digital capabilities, helped drive broad-based momentum across regions and channels.
The numbers tell a compelling story. Total company retail comparable sales rose 17% in the fourth quarter, accelerating from the prior quarter and building on a strong 13% increase in the year-ago period. North America retail comps jumped 16%, led by a 21% rise in digital comps, while Asia retail comps climbed 25% and Europe retail comps increased 5% despite tough comparisons. Direct-to-consumer revenues remained a key growth driver, with North America DTC sales advancing 14%, while Asia revenues climbed 28% and China sales surged more than 50% year over year.
Several factors fueled this retail acceleration. Ralph Lauren’s high-impact marketing campaigns, including Team USA’s Winter Olympics partnership, fashion presentations in New York, Milan and Paris, and Lunar New Year activations across Asia, strengthened brand engagement and customer acquisition. The company added 1.4 million new direct-to-consumer customers during the quarter, marking a low double-digit increase from the prior year. Continued gains in luxury perception, brand relevance and social media engagement further supported traffic and conversion across stores and digital channels.
Looking ahead, Ralph Lauren appears well positioned to sustain healthy retail momentum. Management remains focused on expanding its key city ecosystem strategy, enhancing customer experiences through AI-enabled tools and driving growth in high-potential categories such as women’s apparel, outerwear and handbags. While macroeconomic uncertainty persists in certain regions, the company’s resilient consumer base, strong brand equity and diversified growth drivers suggest that retail performance should remain a key contributor to growth in fiscal 2027.
RL’s Price Performance, Valuation & Estimates
Ralph Lauren’s shares have gained 19.1% in the past three months compared with the industry’s 0.1% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, RL trades at a forward price-to-earnings ratio of 21.70X compared with the industry’s average of 15.35X.
Image Source: Zacks Investment Research
Ralph Lauren currently carries a Zacks Rank #2 (Buy).
Other Key Picks in the Consumer Discretionary Space
Columbia Sportswear Company (COLM - Free Report) , which is a marketer and distributor of outdoor and active lifestyle apparel, footwear, accessories and equipment, currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for COLM’s current financial-year sales is expected to rise 2.6% from the corresponding year-ago reported figure. COLM delivered a trailing four-quarter earnings surprise of 44.1%, on average.
Superior Group of Companies, Inc. (SGC - Free Report) produces, manufactures and sells promotional products and branded uniforms, and healthcare apparel and accessories in the United States and internationally. At present, SGC carries a Zacks Rank of 2.
The Zacks Consensus Estimate for current fiscal-year sales and earnings implies growth of 2% and 28.3%, respectively, from the year-ago reported figures. SGC delivered a trailing four-quarter negative earnings surprise of 81.9%, on average.
Carter’s, Inc. (CRI - Free Report) designs, sources and markets branded children's wear in the United States and internationally. At present, CRI has a Zacks Rank of 2.
The Zacks Consensus Estimate for current fiscal-year sales implies growth of 4.9%, and the same for earnings implies a decline of 10.9% from the year-ago figures. CRI delivered a trailing four-quarter negative earnings surprise of 100.8%, on average.