Ralph Lauren Corporation (RL) reported a 15% increase in Average Unit Retail (AUR) for Q1 of fiscal 2027, continuing a nearly decade-long journey of growth. The brand added 1.5 million direct-to-consumer (DTC) customers, fueled by its retail stores and digital platforms, while core products—making up over 70% of its business—grew at a mid-teens rate. Notably, high-potential categories like women’s apparel and handbags collectively increased more than 20% in the same quarter.
Ralph Lauren’s luxury brand positioning is reflected in improving customer engagement metrics, including Net Promoter Scores and social media following, which surpassed 70 million. Despite a slight 7.7% dip in share price over the past three months, the company remains optimistic about future growth driven by a recovering luxury market and new consumer recruitment strategies.
The Zacks Consensus Estimate indicates potential earnings growth of 13.3% for the current fiscal year and 10.6% for the next, with RL’s forward price-to-earnings ratio standing at 17.66 compared to the industry average of 14.41.
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