Ralph Lauren Stock Surges on Strong China Growth and Revenue Beat

Ralph Lauren shares rallied nearly 10% after the luxury retailer delivered a robust fourth-quarter performance, surpassing analyst expectations on both top and bottom lines. The company posted revenue of $1.98 billion, exceeding the $1.85 billion consensus estimate, while adjusted EPS of $2.80 outpaced the $2.55 forecast.

China emerged as the standout growth engine, with sales soaring more than 50% during the Lunar New Year period. "Exceptionally strong" performance in the region contributed significantly to the 12% constant-currency revenue growth, well above management's mid-single-digit guidance.

UBS responded by raising its price target to $511 from $480, maintaining a Buy rating on expectations of continued earnings upside and multiple expansion. The stock, already up 36.7% over the past year prior to the earnings release, extends its bullish momentum despite management's caution about European consumer sentiment and energy cost pressures.