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Ralph Lauren Corporation RL stock has been trending up the charts in the past year, recording growth of 18%. This growth comfortably outpaces the broader Consumer Discretionary sector’s return of 3.4% and the Zacks Textile - Apparel industry‘s loss of 19.7% in the same period. RL’s shares have also surpassed the S&P 500 index’s appreciation of 9.1% in a year.
RL’s Strategies Aid the Rally
Ralph Lauren’s stock performance is well supported by its progress on ‘Next Great Chapter: Accelerate Plan’ and digital efforts. As part of the plan, the company is focused on elevating its lifestyle brand, expanding core and other businesses, and strengthening its presence in key cities.
RL continues to invest in key priorities like marketing, digital growth and expanding its ecosystem in major cities. The company’s direct-to-consumer channels, including stores and digital commerce, are performing well, with significant progress in mobile, omnichannel and fulfillment investments. In the latest quarter, digital sales were up 14% in Europe and 29% in Asia.
Ralph Lauren delivered strong performance across both retail and wholesale channels, exceeding expectations. The company’s strategic brand elevation, disciplined inventory management and digital investments have been driving its performance across the retail and wholesale channels.
The company is enhancing its global lifestyle brands by offering premium products that align with evolving consumer preferences. Its strategy, which includes product elevation, personalized promotions, disciplined inventory management and a favorable channel and geographic mix, is proving effective.
RL Price Performance
Image Source: Zacks Investment Research
RL’s Earnings Estimate Revisions
Given the tailwinds surrounding the stock, the Zacks Consensus Estimate for fiscal 2025 and fiscal 2026 has been northbound.
In the past 30 days, the consensus estimate for earnings per share (EPS) for the current fiscal year has risen 0.3% to $12.01 and 0.5% to $13.62 for fiscal 2026. This implies a corresponding year-over-year earnings growth of 16.5% and 13.5%, respectively, for fiscal 2025 and 2026.
RL Stock’s Valuation
Going by the price/sales ratio, the stock is currently trading at 1.91 on a forward 12-month basis, higher than 1.90 for the industry. Also, the stock is trading higher than its median of 1.27.
Conclusion
Ralph Lauren’s robust strategies, including the Next Chapter Plan and digital endeavors, position it well for long-term growth. These factors and upward revisions in RL’s earnings estimates bode well for this Zacks Rank #2 (Buy) stock.