Ralph Lauren Earnings: Solid Start to Fiscal Year Despite Tough North America Market

Ralph Lauren overcame challenged consumer spending on apparel in North America to beat our sales and EPS estimates in its (June-ended) fiscal 2024 first quarter. Although the near-term outlook for the North America market remains dim, the firm held to its full-year guidance for low-single-digit sales growth and an adjusted operating margin of about 12%. As our estimates align with this outlook, we do not expect to make any material change to our $131 fair value estimate and view Ralph Lauren’s shares as fully valued.