BTIG Positive on Ralph Lauren (RL), Citing Margin Expansion

Core Insights - Ralph Lauren Corporation (NYSE:RL) is recognized as one of the 14 Best Consumer Discretionary Stocks to Buy currently, with a target price increase of 8.8% to $435 by BTIG analyst Bob Drbul, who maintains a Buy recommendation on the stock [1][7]. Financial Performance - Ralph Lauren reported a net income growth of 21.6% year-over-year (YoY) to $361.6 million in Q3 FY2026, up from $297.4 million [2]. - Earnings per diluted share increased by 24.9% YoY to $5.82, compared to $4.66 in the previous year [2]. - Revenue grew by 12% YoY, with Asia being the fastest-growing segment at 22% YoY [3]. Margin Expansion - The company experienced margin expansion, with operating margins increasing by 220 basis points to 20.9% and gross margins improving by 150 basis points YoY to 69.9% [1][3]. - This margin growth was attributed to a favorable product mix, lower cotton prices, and an increase in average selling prices in the high-teens, which offset the negative impact of new US tariffs [3].