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Ralph Lauren Corporation RL has been showing impressive upward momentum, trading above its 200-day and 50-day simple moving averages (SMA), which are the key indicators of price stability and long-term bullish trends. Trading at $286.50, RL surpassed both its 200-day SMA of $199.54 and 50-day SMA of $246.2, highlighting a continued uptrend.
RL Stock Trading Above 200 & 50-Day SMA
Image Source: Zacks Investment Research
SMA is a key tool in technical analysis used to assess price trends by smoothing out short-term fluctuations, offering a clearer view of the stock's longer-term direction. This technical strength, along with the stock's sustained momentum, reflects positive market sentiment and investor confidence in Ralph Lauren financial health and growth prospects.
Shares of Ralph Lauren have risen 67.2% in the past six months, outpacing the industry’s growth of 23.9%. It has outperformed the broader sector and the S&P 500 index, which posted growth of 28.2% and 10.5%, respectively.
RL Stock's Price Performance in Last Three Months
Image Source: Zacks Investment Research
Ralph Lauren's Strong Growth and Digital Expansion
Ralph Lauren is on track to exceed its growth targets under the "Next Great Chapter: Accelerate Plan," which focuses on simplifying operations, improving technology and strengthening the brand. The company is enhancing its brand appeal, expanding core products while reaching new markets and improving customer experience in key cities. As part of its portfolio update, it transitioned Chaps to a licensed business. Its focus on high-quality products, personalized promotions, efficient inventory management, and a strong global presence is driving success.
By investing in mobile, online sales and better order fulfillment, Ralph Lauren is making strong progress in expanding its digital and omnichannel shopping experience. Its digital business, including its own websites, department store platforms, online retailers and social commerce, is performing well. In the third quarter, it added 1.9 million new customers to its direct-to-consumer business, a low double-digit increase from last year. Most of this growth came from younger, high-value shoppers who are less focused on price, showing the brand's growing appeal to the next generation.
Ralph Lauren also saw improvements in consumer loyalty and brand perception, with more people considering, purchasing and recommending the brand. Social media followers grew by a low double-digit percentage to over 64 million, driven by platforms like TikTok, Threads, Instagram, Line and Douyin. The company remains focused on digital investments to continue content creation for all platforms, enhancing digital capabilities to improve the user experience and leveraging AI and data to serve its consumers more efficiently.
By delivering strong performance across both retail and wholesale channels, Ralph Lauren exceeded expectations. In North America, retail sales saw solid growth, with brick-and-mortar sales rising and digital sales improving due to targeted marketing and website enhancements. Wholesale revenues also increased, driven by higher prices and strong full-price sales. Europe performed even better, with strong retail sales and wholesale growth supported by high reorder rates and brand momentum. In Asia, retail sales saw significant growth, particularly in China, where both digital and in-store sales were strong. Overall, the company’s brand elevation, efficient inventory management and digital investments fueled its continued success.