• Fourth quarter total revenue came in at $2 billion, and adjusted earnings per share was $2.80, both of which beat the consensus estimate.
• For fiscal 2027, the company expects 4% to 5% revenue growth on a constant currency basis.
• The board approved a 10% increase in the regular quarterly cash dividend to $1.00 per share.

Shares of U.S. luxury apparel retailer Ralph Lauren (RL) gained on Thursday after the company reported a strong top- and bottom-line beat for its fourth quarter, driven by solid demand in China, and raised its quarterly dividend payout.

At the time of writing, RL stock was up nearly 10% and on track for its biggest one-day percentage gains in over a year.

Notable Highlights From RL’s Q4

Driving the company's momentum was Asia, where revenue rose 31%, particularly from strong growth in China, as shopping activity increased during the Lunar New Year. When looking at its other key markets, Ralph Lauren saw an 8% revenue growth in North America and 18% growth in Europe.

The company highlighted, among other things, that it was selected as the official opening- and closing-ceremony outfitter for Team USA at the 2026 Milan Cortina Winter Olympics during the fourth quarter (Q4).

Ralph Lauren’s board also gave a nod to a 10% increase in the regular quarterly cash dividend to $1.00 per share, which is expected to be paid on July 10, 2026, to shareholders of record at the close of business on June 26, 2026.

RL’s Q4 Results At A Glance

The company’s total revenue rose 17% to $2 billion, ahead of the $1.85 billion consensus estimate polled by Fiscal AI. Adjusted earnings per share (EPS) was $2.80, better than the consensus estimate of $2.54 per share.

Global direct-to-consumer comparable store sales rose 17%, while adjusted gross margin was 69.7%, up 110 basis points.

“While navigating a highly dynamic global operating environment, we exceeded our financial commitments in fiscal 2026,” said CEO Patrice Louvet.

RL’s Guidance For Fiscal 2027

Going into the new fiscal year, CEO Louvet said the company will embrace AI and other new technologies while maintaining operating discipline.

For fiscal 2027, the company expects 4% to 5% revenue growth on a constant currency basis. It also highlighted that gross and operating margin expansion are expected to be stronger in the first half of the fiscal year, largely due to the timing of key marketing activations.

What Retail Thinks About RL

On Stocktwits, retail sentiment about RL turned ‘bullish’ from ‘neutral’ over the last 24 hours.

RL stock is up 3% so far this year and 33% higher over the past 12 months.

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