Ralph Lauren Analyst Expects Beat-And-Raise Q2, Says Concerns Are ‘Overblown’

Ralph Lauren Corp (NYSE: RL) is expected to report better-than-expected Q2 fiscal 2027 earnings, with analyst Kendall Toscano from BofA Securities predicting a beat-and-raise outcome. Toscano maintains a Buy rating with a price target of $450, citing the company's resilience amidst freight concerns and a weakening U.S. consumer backdrop. He anticipates a 90 basis point year-on-year expansion in EBIT margin and a 60 basis point increase in gross margin, driven by growth in average unit retail prices. Despite a slight decline in stock price to $372.86, Toscano believes the company's higher-income customer base remains strong and is likely to gain market share in Europe.