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Ralph Lauren (RL - Free Report) closed at $371.69 in the latest trading session, marking a -3.99% move from the prior day. This move lagged the S&P 500's daily loss of 1.21%. On the other hand, the Dow registered a loss of 0.97%, and the technology-centric Nasdaq decreased by 2.15%.

Shares of the upscale clothing company witnessed a loss of 6.54% over the previous month, trailing the performance of the Consumer Discretionary sector with its loss of 0.92%, and the S&P 500's gain of 0.42%.

Market participants will be closely following the financial results of Ralph Lauren in its upcoming release. The company plans to announce its earnings on August 6, 2026. The company is forecasted to report an EPS of $4.26, showcasing a 13% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $1.86 billion, indicating a 8.42% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $18.33 per share and revenue of $8.66 billion, which would represent changes of +10.49% and +6.73%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Ralph Lauren. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.02% decrease. Ralph Lauren presently features a Zacks Rank of #3 (Hold).

In terms of valuation, Ralph Lauren is currently trading at a Forward P/E ratio of 21.12. Its industry sports an average Forward P/E of 16.35, so one might conclude that Ralph Lauren is trading at a premium comparatively.

Meanwhile, RL's PEG ratio is currently 1.92. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Textile - Apparel industry stood at 2.26 at the close of the market yesterday.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 182, finds itself in the bottom 27% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

The Consumer Discretionary group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Ralph Lauren (RL - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

Ralph Lauren is a member of the Consumer Discretionary sector. This group includes 259 individual stocks and currently holds a Zacks Sector Rank of #8. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Ralph Lauren is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for RL's full-year earnings has moved 1.7% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, RL has returned 6.5% so far this year. At the same time, Consumer Discretionary stocks have lost an average of 10.7%. This shows that Ralph Lauren is outperforming its peers so far this year.

Another Consumer Discretionary stock, which has outperformed the sector so far this year, is Rush Street Interactive, Inc. (RSI - Free Report) . The stock has returned 77.7% year-to-date.

In Rush Street Interactive, Inc.'s case, the consensus EPS estimate for the current year increased 15.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Ralph Lauren belongs to the Textile - Apparel industry, which includes 22 individual stocks and currently sits at #174 in the Zacks Industry Rank. Stocks in this group have gained about 0.2% so far this year, so RL is performing better this group in terms of year-to-date returns.

In contrast, Rush Street Interactive, Inc. falls under the Gaming industry. Currently, this industry has 41 stocks and is ranked #182. Since the beginning of the year, the industry has moved -15.9%.

Investors interested in the Consumer Discretionary sector may want to keep a close eye on Ralph Lauren and Rush Street Interactive, Inc. as they attempt to continue their solid performance.

Posted by Defense World Staff on Jul 20th, 2026

Boston Common Asset Management LLC reduced its position in Ralph Lauren Corporation (NYSE:RL – Free Report) by 4.5% in the 1st quarter, according to its most recent filing with the SEC. The fund owned 29,187 shares of the textile maker’s stock after selling 1,384 shares during the period. Boston Common Asset Management LLC’s holdings in Ralph Lauren were worth $10,040,000 at the end of the most recent quarter.

A number of other large investors have also recently made changes to their positions in the company. Orion Porfolio Solutions LLC increased its position in Ralph Lauren by 8,937.8% during the second quarter. Orion Porfolio Solutions LLC now owns 963,340 shares of the textile maker’s stock worth $264,225,000 after buying an additional 952,681 shares during the period. Invesco Ltd. lifted its stake in Ralph Lauren by 26.2% in the fourth quarter. Invesco Ltd. now owns 1,324,018 shares of the textile maker’s stock valued at $468,186,000 after buying an additional 275,263 shares during the last quarter. Goldman Sachs Group Inc. boosted its holdings in shares of Ralph Lauren by 40.0% in the fourth quarter. Goldman Sachs Group Inc. now owns 895,017 shares of the textile maker’s stock valued at $316,487,000 after acquiring an additional 255,511 shares during the period. AQR Capital Management LLC boosted its holdings in shares of Ralph Lauren by 38.6% in the fourth quarter. AQR Capital Management LLC now owns 881,360 shares of the textile maker’s stock valued at $311,658,000 after acquiring an additional 245,242 shares during the period. Finally, First Trust Advisors LP grew its position in shares of Ralph Lauren by 70.5% during the fourth quarter. First Trust Advisors LP now owns 586,225 shares of the textile maker’s stock worth $207,295,000 after acquiring an additional 242,386 shares during the last quarter. 67.91% of the stock is owned by institutional investors and hedge funds.

Ralph Lauren Price Performance Ralph Lauren stock opened at $380.64 on Monday. Ralph Lauren Corporation has a 12 month low of $273.04 and a 12 month high of $421.60. The company has a debt-to-equity ratio of 0.51, a current ratio of 2.13 and a quick ratio of 1.57. The business has a 50 day simple moving average of $379.56 and a 200-day simple moving average of $366.38. The stock has a market capitalization of $22.66 billion, a PE ratio of 25.19, a price-to-earnings-growth ratio of 1.89 and a beta of 1.34.

Ralph Lauren (NYSE:RL – Get Free Report) last issued its quarterly earnings results on Thursday, May 21st. The textile maker reported $2.80 earnings per share for the quarter, topping the consensus estimate of $2.52 by $0.28. Ralph Lauren had a return on equity of 38.17% and a net margin of 11.60%.The firm had revenue of $1.98 billion during the quarter, compared to the consensus estimate of $1.85 billion. During the same period last year, the company earned $2.27 earnings per share. The company’s revenue for the quarter was up 16.6% on a year-over-year basis. Equities analysts predict that Ralph Lauren Corporation will post 18.33 earnings per share for the current year.

Ralph Lauren Increases Dividend The company also recently announced a quarterly dividend, which was paid on Friday, July 10th. Stockholders of record on Friday, June 26th were paid a $1.00 dividend. This is a boost from Ralph Lauren’s previous quarterly dividend of $0.91. The ex-dividend date was Friday, June 26th. This represents a $4.00 annualized dividend and a dividend yield of 1.1%. Ralph Lauren’s dividend payout ratio (DPR) is 26.47%.

Analyst Upgrades and Downgrades A number of equities analysts have recently commented on the stock. Barclays lifted their target price on shares of Ralph Lauren from $430.00 to $439.00 and gave the company an “overweight” rating in a report on Friday, May 22nd. Weiss Ratings cut shares of Ralph Lauren from a “buy (b+)” rating to a “buy (b)” rating in a research note on Friday, May 15th. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a $437.00 price objective on shares of Ralph Lauren in a research report on Friday, May 22nd. Wells Fargo & Company lifted their price objective on shares of Ralph Lauren from $400.00 to $415.00 and gave the company an “overweight” rating in a research note on Friday, May 22nd. Finally, Bank of America upped their target price on shares of Ralph Lauren from $400.00 to $450.00 and gave the company a “buy” rating in a report on Thursday, April 16th. Fifteen research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $430.07.

View Our Latest Analysis on RL

Ralph Lauren Profile (Free Report)

Ralph Lauren Corporation (NYSE: RL) is a global designer, marketer and distributor of premium lifestyle products under the Ralph Lauren name and a portfolio of related brands. The company, founded by Ralph Lauren in 1967 and headquartered in New York City, has grown from a single line of men’s neckties into a global lifestyle business that spans apparel, accessories and home goods.

Ralph Lauren’s product assortment includes menswear, womenswear and childrenswear along with footwear, leather goods, eyewear, fragrances and home furnishings.

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Key Takeaways Ralph Lauren is benefiting from premiumization, brand elevation and robust DTC momentum.RL's Next Great Chapter strategy focuses on digital growth and expansion in key markets.RL has outperformed its industry as stronger margins and brand investments drive results. Ralph Lauren Corporation (RL - Free Report) stock has gained roughly 34% over the past year, significantly outperforming the broader market. The rally has been driven by the company’s strong execution of its strategy, robust demand across key markets and consistent improvements in profitability. RL’s focus on premiumization and brand elevation has further strengthened its competitive position.

The company has also benefited from the continued strength of its direct-to-consumer business. Solid growth across both retail stores and digital channels has boosted comparable sales, while strategic investments in customer engagement, marketing and personalized shopping experiences have helped attract younger consumers and reinforce brand loyalty. It continues to invest in premium products and brand-building initiatives while reducing its reliance on promotions and discounts. Higher full-price sales and improved product mix have enhanced pricing power, supporting margin expansion and driving stronger earnings growth.

Ralph Lauren’s Next Great Chapter initiative serves as the foundation of its growth strategy, emphasizing brand elevation, consumer centricity and operational agility. This strategy is designed to create a more balanced global footprint by expanding into high-growth markets, such as Asia, while strengthening its presence in core regions.  The company continues to execute its “Next Great Chapter: Drive Plan,” which focuses on elevating and energizing the lifestyle brand, driving the core and expanding into higher-potential categories, and winning in key cities with its consumer ecosystem.

Digital sales account for an increasingly larger share of Ralph Lauren’s revenues, supported by its ongoing investments in personalization, enhanced mobile capabilities and integrated loyalty programs. These initiatives are aimed at strengthening customer engagement and expanding the brand’s appeal among younger and more diverse consumer groups.

Ralph Lauren continues to optimize its distribution network, deepen relationships with wholesale partners and enhance its retail footprint to reinforce its premium positioning. By balancing the expansion of its direct-to-consumer business with a disciplined approach to distribution, the company is strengthening brand equity and creating a seamless shopping experience across channels.

What’s More for Ralph Lauren?All the aforesaid efforts have been driving the company’s performance for a while. Ralph Lauren’s shares have outperformed the industry’s 8.6% decline over a year.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for RL’s fiscal 2027 and fiscal 2028 earnings per share (EPS) indicates year-over-year growth of 10.5% each. The company’s EPS estimate for both fiscal years has moved north in the past 60 days. The Zacks Consensus Estimate for RL’s fiscal 2027 and fiscal 2028 sales indicates year-over-year growth of 6.7% and 5.9%, respectively. Hence, this sparks optimism about this Zacks Rank #3 (Hold) stock.

Key Picks in the Consumer Discretionary SpaceDuluth Holdings Inc. (DLTH - Free Report) , which deals in casual wear, workwear and accessories for men and women, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Duluth Holdings delivered a trailing four-quarter earnings surprise of 107.5%, on average. The Zacks Consensus Estimate for DLTH’s current financial-year EPS indicates a decline of 11.6% from the year-ago number.

Columbia Sportswear Company (COLM - Free Report) , which engages in the sourcing, marketing and distribution of outdoor and active lifestyle apparel, footwear, accessories and equipment, currently carries a Zacks Rank #2 (Buy).

COLM delivered a trailing four-quarter earnings surprise of 44.1%, on average. The Zacks Consensus Estimate for Columbia Sportswear’s current financial-year sales indicates growth of 2.6% from the year-ago number.

Crocs, Inc. (CROX - Free Report) , which is a leading footwear company, currently carries a Zacks Rank of 2. CROX delivered a trailing four-quarter earnings surprise of 13.6%, on average.

The Zacks Consensus Estimate for Crocs’ current financial-year EPS indicates a rise of 9.3% from the year-ago number.

RL's 36% rally reflects strong brand momentum, DTC gains and Asia growth, but premium valuation and macro risks may favor patience.

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. However, it isn't easy to find a great growth stock.

That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.

However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it pretty easy to find cutting-edge growth stocks.

Ralph Lauren (RL - Free Report) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.

Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).

Here are three of the most important factors that make the stock of this upscale clothing company a great growth pick right now.

Earnings GrowthEarnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Ralph Lauren is 20.5%, investors should actually focus on the projected growth. The company's EPS is expected to grow 10.5% this year, crushing the industry average, which calls for EPS growth of 5.5%.

Cash Flow GrowthCash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds.

Right now, year-over-year cash flow growth for Ralph Lauren is 25.6%, which is higher than many of its peers. In fact, the rate compares to the industry average of 13.6%.

While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 27.6% over the past 3-5 years versus the industry average of 14.1%.

Promising Earnings Estimate RevisionsBeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

The current-year earnings estimates for Ralph Lauren have been revising upward. The Zacks Consensus Estimate for the current year has surged 0.2% over the past month.

Bottom LineWhile the overall earnings estimate revisions have made Ralph Lauren a Zacks Rank #2 stock, it has earned itself a Growth Score of B based on a number of factors, including the ones discussed above.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

This combination indicates that Ralph Lauren is a potential outperformer and a solid choice for growth investors.

Item 1 of 5 Vintage Polo Ralph Lauren T-shirts are displayed at Neng Vintage, a store specializing in Polo Ralph Lauren vintage clothing in Shanghai, China, June 23, 2026. REUTERS/Go Nakamura

[1/5]Vintage Polo Ralph Lauren T-shirts are displayed at Neng Vintage, a store specializing in Polo Ralph Lauren vintage clothing in Shanghai, China, June 23, 2026. REUTERS/Go Nakamura Purchase Licensing Rights, opens new tab

SummaryCompaniesRalph Lauren reported a 50% sales jump in China last quarterThe company operates around 250 stores in ChinaAnalysts say shoppers shifted from top-tier luxury to brands offering stronger valueExecutives say China momentum reflects a multi-year brand overhaul, not a short-term reboundSHANGHAI, June 30 (Reuters) - Collector Xiao Neng says he has spent at least $1 million on Ralph ​Lauren (RL.N), opens new tab clothing over the past four to five years, building a wardrobe so large that he now sells pieces of it in two ‌vintage stores that he opened in downtown Shanghai.

The 23-year-old is part of a growing group of Chinese superfans helping fuel a resurgence for the American brand, which reported a 50% sales jump in the country last quarter, even as the broader luxury market remains subdued by weak consumer confidence, a prolonged property downturn and concerns about jobs and income growth. China's luxury sector is "slowly recovering" in 2026 after ​several years of contraction and flat sales, according to Bain.

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“Ralph Lauren, through clothing, provides people with a way to achieve this American Dream," Neng said. "What ​he makes is clothing with an American Dream feel to it.” He added that the American Dream is not unique to people ⁠from the U.S.; it is an aspirational lifestyle that can be shared by consumers in China.

The company’s recent strength in China, where it has around 250 stores, is ​the bounty of a multi-year overhaul rather than a short-term rebound, executives and analysts say. Chief Executive Patrice Louvet said in a post-earnings call last month the gains were “not a ​one-off” but stemmed from years of work to strengthen brand positioning and local relevance.

“We're in China not just to win this year, but we're in China trying to win for the next 10 and 20 years and really make sure we're building the right foundations for the long term,” he added. Ralph Lauren declined to comment further for this story.

'THEY OFFER GREAT VALUE'Ralph Lauren's brand elevation ​strategy has coincided with a shift in Chinese consumer behaviour away from ultra-high-end luxury toward labels viewed as offering stronger value.

Ralph Lauren’s pricing positions it below European luxury houses, ​many of which have pushed steep price increases in recent years. According to figures from Bernstein, luxury brands as a whole raised prices 36% between 2020 and 2023, led by top-tier players like ‌Chanel and ⁠LVMH Group's (LVMH.PA), opens new tab Dior and Louis Vuitton.

Dresses at Ralph Lauren boutiques in China typically cost a few thousand yuan, with shirts often under 2,000 yuan ($294.24), compared with more than 20,000 yuan for dresses and over 6,000 yuan for shirts at brands like Dior.

“Another advantage is that they offer great value,” Neng said. “The brand's positioning and style are very high-end, meaning you're getting a high-class item for a smaller price.”

According to Jacques Roizen, co-founder of Shanghai-based Foresight Performance Partners, a large group of Chinese luxury shoppers has pulled back from ​top-tier brands as confidence weakened.

“She looks at Hermès ​and the like, and she says ⁠this is above my needs," he said. "The value proposition doesn't match my current confidence in the economy. And you've seen brands like Coach and Ralph Lauren do very, very well as a result."

Roizen said the brand’s recent performance reflects both this shift and years ​of strategic changes.

“You don't overperform the market by 50% because you got lucky," he said. "They've done a lot of things ​right."

Among those changes was ⁠a move away from heavy discounting.

“They’ve walked away from being, first and foremost, a brand that generated revenue on discounts during shopping festivals and all that stuff,” Roizen added.

The company has also invested heavily in upgrading stores and marketing, while adopting a city-by-city strategy that focuses resources on key urban markets like Shanghai, Beijing and Chengdu to deepen customer engagement rather than ⁠expanding uniformly ​nationwide, said Yann Bozec, a former APAC president at Coach-owner Tapestry (TPR.N), opens new tab and founder of consultancy YB Stratis.

"When it ​comes to media spend, stores, events, targeted digital marketing, they will do it in those cities," he said. "It is a sound strategy to be very focused on some cities where they can achieve the reach ​and the frequency that they need in order to create impressions."

($1 = 6.7971 yuan)

Reporting by Casey Hall in Shanghai, additional reporting by Chenxi Yang; Editing by Lisa Jucca and Thomas Derpinghaus

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Casey is the Shanghai bureau chief and a senior correspondent covering companies in China, reporting on the biggest issues facing local and global businesses operating in the world's second largest economy. The Australian-born journalist has been based in Shanghai since 2007.

Key Takeaways RL is executing its Next Great Chapter strategy to drive brand elevation and global expansion.Ralph Lauren is investing in personalization, digital capabilities and omnichannel experiences.RL reported 17% global DTC comps growth in Q4 fiscal 2026, with digital sales gains across regions. Ralph Lauren Corporation (RL - Free Report) continues to strengthen its long-term growth profile through disciplined execution of its Next Great Chapter strategy. The company is advancing its digital transformation through personalization, data-driven insights and seamless omnichannel experiences. RL leverages advanced data analytics to tailor product recommendations, optimize pricing and refine marketing strategies across regions.

Ralph Lauren’s Next Great Chapter initiative serves as the foundation of its growth strategy, emphasizing brand elevation, consumer centricity and operational agility. This strategy is designed to create a more balanced global footprint by expanding into high-growth markets, such as Asia, while strengthening its presence in core regions.  The company continues to execute its “Next Great Chapter: Drive Plan,” which focuses on elevating and energizing the lifestyle brand, driving the core and expanding into higher-potential categories, and winning in key cities with its consumer ecosystem.

Digital sales now represent a growing share of total revenues, supported by continuous investments in personalization, enhanced mobile capabilities and integrated loyalty programs designed to connect with younger and more diverse consumers. Ralph Lauren is optimizing distribution, strengthening wholesale partnerships and enhancing its retail network to reinforce its premium positioning. The company has been experiencing significant growth in its digital channels across key regions. Continuous investments in personalization, mobile capabilities and loyalty integration have strengthened digital sales, enabling it to make deeper engagements with younger and more diverse consumer segments.

In fourth-quarter fiscal 2026, global direct-to-consumer comparable store sales (comps) increased 17%, with positive retail comps across regions and channels. Digital commerce improved 21% in North America, 14% in Europe and 31% in Asia. For fiscal 2027, the company expects constant currency revenues to increase approximately mid-single digits on a 52-week comparable basis, centered around 4-5%, and noted the 53rd week should add about one point to revenue growth and benefit operating margin.

RL’s Price Performance, Valuation and EstimatesRalph Lauren’s shares have gained 14.9% in the past six months against the industry’s 8.1% decline.

Image Source: Zacks Investment Research

From a valuation standpoint, RL is trading at a forward price-to-earnings ratio of 21.83X compared with the industry’s average of 14.92X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for RL’s fiscal 2027 and fiscal 2028 earnings per share (EPS) indicates year-over-year growth of 10.5% each. The company’s EPS estimate for fiscal 2027 and fiscal 2028 has moved north in the past 30 days.

Image Source: Zacks Investment Research

Ralph Lauren currently carries a Zacks Rank #2 (Buy).

Other Key Picks in the Consumer Discretionary SpaceColumbia Sportswear Company (COLM - Free Report) , which engages in the sourcing, marketing and distribution of outdoor and active lifestyle apparel, footwear, accessories and equipment, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

COLM delivered a trailing four-quarter earnings surprise of 44.1%, on average. The Zacks Consensus Estimate for Columbia Sportswear’s current financial-year sales indicates growth of 2.6% from the year-ago number.

Crocs, Inc. (CROX - Free Report) , which is a leading footwear company, currently carries a Zacks Rank of 2. CROX delivered a trailing four-quarter earnings surprise of 13.6%, on average.

The Zacks Consensus Estimate for Crocs’ current financial-year EPS indicates a rise of 9.3% from the year-ago number.

Gildan Activewear Inc. (GIL - Free Report) , which is a designer and marketer of premium quality branded basic activewear, currently has a Zacks Rank of 2.

GIL delivered a negative trailing four-quarter earnings surprise of 1.1%, on average. The Zacks Consensus Estimate for Gildan Activewear’s current financial-year sales indicates growth of 68.3% from the year-ago number.

Key Takeaways Ralph Lauren's retail comparable sales rose 17% in Q4, accelerating from the prior quarter.North America comps gained 16%, Asia rose 25% and Europe increased 5% despite tough comparisons.Marketing activations and digital gains helped add 1.4 million new direct-to-consumer customers. Ralph Lauren Corporation’s (RL - Free Report) retail business continued its momentum in fourth-quarter fiscal 2026, highlighting the strength of its brand elevation strategy and growing consumer appeal across key markets. The company has been steadily shifting toward higher-quality sales, attracting younger and less price-sensitive consumers while enhancing full-price selling. These efforts, combined with strong marketing activations and expanding digital capabilities, helped drive broad-based momentum across regions and channels.

The numbers tell a compelling story. Total company retail comparable sales rose 17% in the fourth quarter, accelerating from the prior quarter and building on a strong 13% increase in the year-ago period. North America retail comps jumped 16%, led by a 21% rise in digital comps, while Asia retail comps climbed 25% and Europe retail comps increased 5% despite tough comparisons. Direct-to-consumer revenues remained a key growth driver, with North America DTC sales advancing 14%, while Asia revenues climbed 28% and China sales surged more than 50% year over year.

Several factors fueled this retail acceleration. Ralph Lauren’s high-impact marketing campaigns, including Team USA’s Winter Olympics partnership, fashion presentations in New York, Milan and Paris, and Lunar New Year activations across Asia, strengthened brand engagement and customer acquisition. The company added 1.4 million new direct-to-consumer customers during the quarter, marking a low double-digit increase from the prior year. Continued gains in luxury perception, brand relevance and social media engagement further supported traffic and conversion across stores and digital channels.

Looking ahead, Ralph Lauren appears well positioned to sustain healthy retail momentum. Management remains focused on expanding its key city ecosystem strategy, enhancing customer experiences through AI-enabled tools and driving growth in high-potential categories such as women’s apparel, outerwear and handbags. While macroeconomic uncertainty persists in certain regions, the company’s resilient consumer base, strong brand equity and diversified growth drivers suggest that retail performance should remain a key contributor to growth in fiscal 2027.

RL’s Price Performance, Valuation & EstimatesRalph Lauren’s shares have gained 19.1% in the past three months compared with the industry’s 0.1% growth.

Image Source: Zacks Investment Research

From a valuation standpoint, RL trades at a forward price-to-earnings ratio of 21.70X compared with the industry’s average of 15.35X.

Image Source: Zacks Investment Research

Ralph Lauren currently carries a Zacks Rank #2 (Buy).

Other Key Picks in the Consumer Discretionary SpaceColumbia Sportswear Company (COLM - Free Report) , which is a marketer and distributor of outdoor and active lifestyle apparel, footwear, accessories and equipment, currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for COLM’s current financial-year sales is expected to rise 2.6% from the corresponding year-ago reported figure. COLM delivered a trailing four-quarter earnings surprise of 44.1%, on average.

Superior Group of Companies, Inc. (SGC - Free Report) produces, manufactures and sells promotional products and branded uniforms, and healthcare apparel and accessories in the United States and internationally. At present, SGC carries a Zacks Rank of 2.

The Zacks Consensus Estimate for current fiscal-year sales and earnings implies growth of 2% and 28.3%, respectively, from the year-ago reported figures. SGC delivered a trailing four-quarter negative earnings surprise of 81.9%, on average.

Carter’s, Inc. (CRI - Free Report) designs, sources and markets branded children's wear in the United States and internationally. At present, CRI has a Zacks Rank of 2.

The Zacks Consensus Estimate for current fiscal-year sales implies growth of 4.9%, and the same for earnings implies a decline of 10.9% from the year-ago figures. CRI delivered a trailing four-quarter negative earnings surprise of 100.8%, on average.

Ralph Lauren (RL - Free Report) closed the most recent trading day at $413.01, moving +2.27% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 1.09%. Meanwhile, the Dow gained 0.14%, and the Nasdaq, a tech-heavy index, added 1.91%.

Coming into today, shares of the upscale clothing company had gained 22.66% in the past month. In that same time, the Consumer Discretionary sector gained 0.45%, while the S&P 500 gained 0.29%.

Analysts and investors alike will be keeping a close eye on the performance of Ralph Lauren in its upcoming earnings disclosure. The company's upcoming EPS is projected at $4.26, signifying a 13.00% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.86 billion, up 8.25% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $18.33 per share and revenue of $8.66 billion. These totals would mark changes of +10.49% and +6.68%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Ralph Lauren. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.37% increase. Ralph Lauren is currently sporting a Zacks Rank of #2 (Buy).

With respect to valuation, Ralph Lauren is currently being traded at a Forward P/E ratio of 22.03. This signifies a premium in comparison to the average Forward P/E of 15.93 for its industry.

It is also worth noting that RL currently has a PEG ratio of 2. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Textile - Apparel industry was having an average PEG ratio of 2.12.

The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 97, finds itself in the top 40% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

Ralph Lauren stock rises and is the best performer in the S&P 500 after the luxury retailer reported fiscal fourth-quarter earnings.

Ralph Lauren Corp (NYSE:RL) shares surged nearly 12% on Thursday after the high-end apparel maker reported fourth-quarter fiscal 2026 revenue and profit that topped analyst expectations, signaling resilient consumer appetite for premium fashion amid ongoing tariff uncertainty.

The company posted revenue of $1.98 billion, ahead of analyst estimates of roughly $1.85 billion, while adjusted earnings per share came in at $2.80, beating the consensus forecast of approximately $2.55.

Regional performance was broad-based. North America comparable sales accelerated to 16% from 7% in the third quarter, while Europe rebounded to 5% comparable growth from flat in the prior quarter, a recovery investors had been closely watching.

Asia remained the standout, rising 28% in constant currency and accelerating from 22% in the third quarter.

Direct-to-consumer average unit retail prices climbed at a mid-teens rate, supported by product elevation, favorable mix and reduced promotional activity.

Jefferies called the quarter a strong beat and said it is biased toward upside to fiscal 2027 guidance based on business momentum and the levers available to management.

For fiscal 2027, Ralph Lauren guided revenue growth of mid-single digits in constant currency, centered on 4% to 5%, with operating margin expansion of 40 to 60 basis points. Margin gains are expected to be stronger in the first half due to marketing timing and a lower tariff rate of 10%.

Jefferies estimated the guidance implies EBIT of approximately $1.41 billion at the midpoints, largely in line with the Street once the extra week is excluded.

For the first quarter of fiscal 2027, the company guided mid-to-high single-digit revenue growth in constant currency, with operating margin expansion of 80 to 120 basis points, ahead of the Street's estimate of 20 basis points. Management said tariff pressures will be offset through higher average unit retail prices, product mix and cost savings.

Ralph Lauren Corporation stands out in an oversold retail sector, delivering robust growth and margin performance amid a challenging macro environment. RL reported Q4 revenue up 17% y/y to $1.98B, sharply beating expectations, with comp sales surging 16% in North America and 25% in Asia. Gross margin expanded to ~70%, and pro forma EPS of $2.80 exceeded consensus by 10%, highlighting RL's operational strength and brand momentum.

Delivering blowout results for its fiscal fourth quarter this morning, Ralph Lauren (RL - Free Report) ) stock soared 14% in Thursday’s trading session.

This comes as the luxury apparel maker beat Wall Street’s expectations on both revenue and earnings, raised its dividend, and issued upbeat guidance — all signs that its multi-year brand elevation strategy continues to work.

The key question for investors is whether the rally still has room to run — or if much of the good news is already priced in.

Image Source: Zacks Investment Research

A Quarter That Checked Every Box

Ralph Lauren reported Q4 revenue of $1.97 billion, up 16% year over year and comfortably ahead of analyst consensus estimates of $1.84 billion. Adjusted earnings per share came in at $2.80, spiking 23% YoY and beating expectations of $2.52 by 11%.

Even more impressive was the breadth of Ralph Lauren’s Q1 strength:

Direct-to-consumer comparable sales jumped 17%Asia revenue surged over 28%China sales skyrocketed more than 50%Gross and operating margins expandedFull-price selling remained strongThe company boosted its quarterly dividend by 10% to $1.00 per shareThis wasn’t simply a case of cost-cutting lifting earnings, as Ralph Lauren chose to reward shareholders by boosting its dividend because demand was genuinely strong across channels, regions, and product categories.

Notably, Ralph Lauren credited its standout quarterly performance to stronger consumer engagement, premium brand positioning, and successful marketing initiatives tied to global sporting and cultural events.

Ralph Lauren Is Becoming a True Luxury Growth StoryFor years, Ralph Lauren was viewed as a mature apparel brand with cyclical exposure, but that perception is changing.

Under CEO Patrice Louvet, the company has steadily repositioned itself toward higher-end consumers, improved pricing power, reduced discounting, and expanded its direct-to-consumer business. The results are now showing up consistently in the numbers.

One of the most encouraging signs is average unit retail (AUR) growth. Consumers are proving they are willing to pay premium prices for Ralph Lauren products even in a mixed macro environment. That indicates the brand has strengthened rather than merely benefited from temporary fashion trends.

As its Q4 results largely illustrated, Ralph Lauren is also gaining traction internationally, especially in Asia, where luxury demand remains a long-term growth driver.

Furthermore, Ralph Lauren’s growth is no longer dependent solely on wholesale department-store relationships as its direct-to-consumer ecosystem continues to expand, which supports both margins and customer loyalty.

RL's Guidance Suggests Momentum ContinuesRalph Lauren’s outlook further reinforced investor confidence, forecasting full-year FY27 revenue growth of 4%-5%. First quarter sales growth is expected in the mid-to-high single digits on an operating margin expansion of 40-60 basis points.  

While those growth rates are more moderate than last quarter, they remain impressive for a global apparel company already generating nearly $8 billion in annual revenue.

Plus, Ralph Lauren also maintains a strong balance sheet with significant cash generation and ongoing shareholder returns through dividends and buybacks.

Is RL Stock Too Expensive After the Rally?Despite a lofty price tag of $375 a share, RL stock is still trading at a reasonable valuation of 18X forward earnings.

This still offers a pleasant discount to the benchmark S&P 500’s 23X and is roughly on par with its Zacks Textile-Apparel Industry average, which includes other prominent names such as Crocs ((CROX - Free Report) ) and Lululemon (LULU - Free Report) ). 

Image Source: Zacks Investment Research

So, Is It Still Time to Buy RL Stock?At the moment, RL stock currently lands a Zacks Rank #3 (Hold). Although Ralph Lauren remains very appealing to long-term investors, there may be better buying opportunities after such a sharp one-day rally.

To that point, RL stock may not be a bargain after its sharp move higher, but its valuation supports the argument for long-term upside. Plus, Ralph Lauren is executing extremely well, growing internationally, expanding margins, and generating strong shareholder returns.

Ralph Lauren Corp (NYSE:RL) on Thursday reported its fiscal fourth-quarter results.

• Ralph Lauren stock is trading at elevated levels. What’s ahead for RL stock?

Here are the key analyst insights:

Needham: Ralph Lauren's "brand-elevation strategy is working very well," and is driving growth in sales, margins and earnings, Nikic said in a note. He mentioned four highlights of the latest quarterly results:

Check out other analyst stock ratings.

Backed by pricing power and a favorable mix, Ralph Lauren's adjusted gross margin expanded by around 110 basis points (bps) year-on-year to 69.7%, the analyst stated. The company's performance was led by Asia, with China growing more than 50% on "strong Lunar New Year demand and continued brand momentum," he further wrote.

RL Price Action: Shares of Ralph Lauren had risen by 0.41% to $376.08 at the time of publication on Friday.

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Ralph Lauren scores higher than Tapestry in strategy, growth runway, and financial health, with a total score of 12 vs. 9 out of 15. RL's focus on high-end brands and reducing wholesale exposure offers a more secure long-term growth runway than TPR's Gen Z-targeted, trend-sensitive strategy. TPR's high leverage (debt-to-equity 715%) and reliance on affordable handbags expose it to fashion cyclicality and profitability risks.

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Ralph Lauren (RL - Free Report) Ralph Lauren Corp. is a major designer, marketer and distributor of premium lifestyle products in North America, Europe, Asia, and internationally. It offers products in the apparel, footwear, accessories, home furnishings, and other licensed product categories. The company possesses a strong portfolio of globally recognized brand names such as Polo Ralph Lauren, Ralph Lauren Purple Label, Ralph Lauren Collection, Double RL, Lauren Ralph Lauren, Polo Golf Ralph Lauren, Ralph Lauren Golf, RLX Ralph Lauren, Polo Ralph Lauren Children, Chaps, Club Monaco and American Living.

RL is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

Additionally, the company could be a top pick for growth investors. RL has a Growth Style Score of B, forecasting year-over-year earnings growth of 9.2% for the current fiscal year.

Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.09 to $18.12 per share. RL also boasts an average earnings surprise of +9.1%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, RL should be on investors' short list.

Investors might want to bet on Ralph Lauren (RL - Free Report) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.

A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.

Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.

As such, the Zacks rating upgrade for Ralph Lauren is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.

Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Ralph Lauren imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.

Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for Ralph LaurenFor the fiscal year ending March 2027, this upscale clothing company is expected to earn $18.23 per share, which is unchanged compared with the year-ago reported number.

Analysts have been steadily raising their estimates for Ralph Lauren. Over the past three months, the Zacks Consensus Estimate for the company has increased 1.1%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Ralph Lauren to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

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Key Takeaways The GARP strategy identifies undervalued stocks with solid growth prospects for maximum returns.GARP combines value metrics like P/E ratios with growth rates between 10% and 25%.GFF, RL, ABBNY and ADSK represent promising GARP opportunities with strong fundamentals. If you are looking for a profitable portfolio of stocks offering the best of value and growth investing, you can try the growth at a reasonable price or GARP strategy.

The strategy helps investors gain exposure to undervalued stocks with impressive prospects. Unlike a blend strategy, a portfolio that uses GARP investing is expected to include stocks that offer the best of value and growth investing. Griffon (GFF - Free Report) , Ralph Lauren (RL - Free Report) , ABB (ABBNY - Free Report) and Autodesk (ADSK - Free Report) are some GARP stocks that hold promise.

GARP Metrics: Mix of Growth & Value MetricsThe GARP strategy seeks to offer an ideal investment by utilizing the best features of value and growth investing. Investors adopting the GARP approach prefer buying stocks priced below the market or any reasonable target determined by fundamental analysis. These stocks also have solid prospects in terms of cash flow, revenues, earnings per share (EPS) and so on.

Growth Metrics

A strong earnings growth history and impressive earnings prospects are the main concepts that GARP investors borrow from the growth investing strategy. However, instead of super-normal growth rates, pursuing stocks with a more stable and reasonable growth rate is a tactic of GARP investors. Hence, growth rates between 10% and 20% are considered ideal under the GARP strategy.

Another metric that growth and GARP investors consider is return on equity (ROE). GARP investors look for a strong and higher ROE than the industry average to identify superior stocks. Stocks with positive cash flows find precedence under the GARP plan.

Value Metrics

GARP investing prioritizes popular value metrics, the price-to-earnings (P/E) and price-to-book (P/B) ratios. Though this investing style picks stocks with higher P/E ratios than value investors, it avoids companies with extremely high P/E ratios.

Using the GARP principle, we ran a screen to identify stocks that should offer solid returns in the near term.

Screening ParametersAlong with the criteria discussed in the above section, we have considered a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

Last 5-year EPS & projected 3-5-year EPS growth rates between 10% and 25% (Strong EPS growth history and prospects ensure improving business.)

ROE (over the past 12 months) greater than the industry average (Higher ROE than the industry average indicates superior stocks.)

P/E and P/B ratios less than the M-industry average (P/E and P/B ratios less than that of the industry indicate that the stocks are undervalued.)

Here are four stocks from the eight that made it through the screening process. Each of the selected stocks given below carry a Zacks Rank #2.

Griffon Corporation is gaining strategic clarity as its pivot to a pure-play North American building products company accelerates. The AMES–ONCAP joint venture—covering the U.S. and Canada operations—is on track to close by the end of June 2026, sharpening focus on its higher-margin core. In second-quarter fiscal 2026, a 5% price-and-mix tailwind largely neutralized a 6% residential volume decline, keeping adjusted EPS from continuing operations flat at $1.05. Free cash flow from continuing operations reached $100.7 million in the first half, enabling $72 million in shareholder returns. Management maintained its fiscal 2026 guidance of $1.8 billion revenues and $458 million adjusted EBITDA. Clopay's May 2026 proprietary switchable-glass door launch expands its premium commercial portfolio, while $247 million in buyback capacity supports capital returns.

The Zacks Consensus Estimate for Griffon’s fiscal 2026 earnings has moved north by 2.6% to $5.17 per share in the past 60 days. Its earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, while missing once, the average surprise being 3.25%.

Ralph Lauren presents a compelling near-term opportunity anchored by strong fiscal 2026 fundamentals and forward momentum. Annual revenues crossed $8 billion for the first time, growing 12% in constant currency, while direct-to-consumer comparable store sales climbed 13% for the year. Full-year adjusted operating margin expanded 140 basis points to 15.4% in constant currency, surpassing internal targets. Average unit retail rose mid-teens, driven by brand elevation and disciplined full-price selling. High-potential categories — women's apparel, outerwear, and handbags — surged over 20% in the fourth quarter. Asia revenues soared 31% in the fiscal fourth quarter. The board approved a 10% dividend increase. For fiscal 2027, management has guided mid-single-digit revenue growth and continued operating margin expansion, consistent with its long-term Next Great Chapter: Drive commitments.

The Zacks Consensus Estimate for RL’s fiscal 2027 earnings has moved north by 1.3% to $18.29 per share in the past 60 days. The company surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 9.14%.

ABB Ltd. presents a compelling near-term investment opportunity underpinned by strong fundamentals. In first-quarter 2026, the company posted record orders of $11.3 billion, up 24% on a comparable basis, with Electrification orders surging 44% and a robust book-to-bill of 1.29. Operational EBITA margins expanded 320 basis points to 23.5%, while free cash flow hit a first-quarter record of $1.25 billion, up 92% year on year. Management has since raised its full-year 2026 guidance, targeting high single-digit to low double-digit comparable revenue growth with continued year-on-year margin improvement. In May 2026, ABB announced a $200 million European investment in medium-voltage manufacturing, reinforcing its grid transformation strategy across data center and utility segments. A $2 billion share buyback program adds further shareholder support.

The consensus estimate for ABB’s 2026 earnings has moved north by 12.9% to $3.6 per share in the past 60 days. Its earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters, while missing twice, the average surprise being 10.72%.

Autodesk enters the near-term with solid fundamental momentum. First-quarter fiscal 2027 revenues grew 18% year over year to $1.93 billion, while free cash flow surged 58% to $876 million. The company's largest segment, AECO, expanded 20% and the Make segment grew 25%. Following this strength, Autodesk raised its full-year FY27 guidance, now targeting revenues of $8.16–$8.22 billion, non-GAAP EPS of $12.40–$12.65, non-GAAP operating margin of approximately 39%, and free cash flow of $2.73–$2.80 billion. The announced $3.6 billion acquisition of MaintainX, alongside the launch of Autodesk Operations Solutions (AOS), meaningfully extends its Design-Make-Operate lifecycle strategy. The May 2026 Autodesk for Small Business initiative broadens addressable markets. Expanding AI-driven Fusion workflows and a current RPO of $7.8 billion, up 9%, reinforce near-term revenue visibility.

The consensus estimate for ADSK’s fiscal 2027 earnings has moved north by 0.2% to $12.4 per share in the past 60 days. The company surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 7.07%.

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Published in consumer-discretionary industrial-products tech-stocks

Companies in the Zacks Textile - Apparel industry are benefiting from improving store traffic and continued growth in digital channels. To enhance customer engagement and meet evolving expectations, companies are investing in e-commerce platforms, mobile applications, omnichannel fulfillment capabilities and AI-driven tools that improve operational efficiency and the overall shopping experience.

Industry players are also strengthening brand equity through product innovation, marketing initiatives, strategic partnerships and portfolio expansion efforts. While cost pressures, tariff uncertainties and geopolitical developments remain challenges, companies are emphasizing supply-chain diversification, sourcing efficiencies and inventory discipline. These trends position Ralph Lauren Corporation (RL - Free Report) , Crocs, Inc. (CROX - Free Report) , Columbia Sportswear Company (COLM - Free Report) and G-III Apparel Group, Ltd. (GIII - Free Report) to capitalize on favorable industry dynamics.

About the Industry The Zacks Textile - Apparel industry includes companies and lifestyle brands that manufacture, design, distribute, source, market and sell apparel, footwear and accessories for men and women. These include fashion apparel like dresses, pants, skirts, shorts, shirts, jackets, blouses and knitwear, and intimate apparel like underwear and shapewear. The industry also comprises companies offering apparel for a healthy lifestyle and athletic activities, such as yoga, running and training. Some companies also deal with fitness-related accessories like gloves, bags, headwear and sports masks. The industry participants operate through direct-to-consumer (brick-and-mortar and online), wholesale and licensing distribution channels. Most players operate through stores and digital networks in the United States and internationally.

3 Trends Shaping the Future of the Textile - Apparel Industry Improved Store Traffic and Strong Digital Trends: As consumers increasingly shift between physical and digital channels, textile-apparel companies are reimagining the end-to-end customer journey. Brands are prioritizing investments to enhance experiences across every touchpoint, revitalizing in-store engagement while capitalizing on the continued growth of e-commerce. This dual focus is driving upgrades to digital platforms, mobile applications and payment systems, along with tighter integration between online and offline operations. To meet rising expectations for convenience and speed, companies are expanding fulfillment capabilities and offering flexible options such as buy online, pick up in-store and curbside delivery. Meanwhile, the adoption of AI technologies is enhancing customer engagement, improving inventory management and streamlining operations, enabling greater efficiency and agility across channels.

Brand-Enhancing Initiatives: Textile-apparel companies continue to strengthen brand equity through diversified marketing efforts, licensing agreements, strategic acquisitions and partnerships. Product innovation remains a key growth driver, with companies introducing new collections, categories and collaborations to stay relevant and meet evolving consumer preferences. Strong brands with differentiated offerings are better positioned to drive customer loyalty, expand market share and support long-term growth.

Cost and Trade Headwinds: Textile-apparel companies continue to operate in an environment marked by cost pressures and trade-related uncertainties. While input and freight costs have eased from peak levels, fluctuations in sourcing expenses, labor costs and transportation rates remain areas of concern. In addition, evolving trade policies, tariff uncertainties and geopolitical tensions can increase operating costs and create complexities across global supply chains, weighing on pricing and margin visibility. To navigate these challenges, companies are emphasizing supply-chain diversification, sourcing efficiencies, inventory discipline and cost-control initiatives while continuing to invest in long-term growth opportunities.

Zacks Industry Rank Indicates Bright Prospects The Zacks Textile – Apparel industry is housed within the broader Zacks Consumer Discretionary sector. The industry currently carries a Zacks Industry Rank #94, which places it in the top 38% of 247 Zacks industries.

The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.

Let’s look at the industry’s performance and current valuation.

Industry vs. Broader Market The Zacks Textile - Apparel industry has underperformed the broader Zacks Consumer Discretionary sector and the S&P 500 composite in the past year.

The industry has declined 15.3% compared with the broader sector’s fall of 12.8%. Meanwhile, the S&P 500 has increased 26.2%.

One-Year Price Performance

Industry's Current Valuation On the basis of forward 12-month price-to-earnings (P/E), commonly used for valuing consumer discretionary stocks, the industry is currently trading at 17.35X compared with the S&P 500’s 21.5X and the sector’s 16.65X.

Over the past five years, the industry has traded as high as 25.52X and as low as 12.87X, with the median being 17.18X, as the chart shows.

Price-to-Earnings Ratio (Past 5 Years)

4 Must-Watch Textile-Apparel Stocks Columbia Sportswear: This Zacks Rank #1 (Strong Buy) company designs, sources, markets and distributes outdoor, active and lifestyle apparel, footwear and accessories. The company operates through a combination of wholesale and direct-to-consumer channels while leveraging its portfolio of outdoor brands. Columbia Sportswear emphasizes product innovation and proprietary performance technologies to strengthen its competitive positioning. It also continues to invest in digital and omnichannel capabilities to enhance the consumer experience and support e-commerce growth. In addition, the company focuses on international expansion, supply-chain efficiency and disciplined cost management, while investing in marketing and brand-building initiatives to support long-term growth. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Columbia Sportswear’s current fiscal-year earnings per share (EPS) has moved up 14 cents in the past 30 days to $3.86. Shares of COLM have gained 2.6% in the past year.

Price and Consensus: COLM

Ralph Lauren: This Zacks Rank #2 (Buy) company is a leading designer, marketer and distributor of premium lifestyle products. Ralph Lauren continues to execute its “Next Great Chapter: Drive” strategy, which is focused on elevating the brand and supporting long-term growth. The company emphasizes expanding its global presence, strengthening consumer engagement and enhancing its digital and technological capabilities. Ralph Lauren is steadily growing its omnichannel ecosystem through investments in e-commerce, mobile platforms and integrated retail experiences. The company also continues to leverage its broad lifestyle product portfolio, invest in marketing and brand-building initiatives, and deepen its presence in key markets worldwide. Looking ahead, management remains focused on enhancing brand desirability and reinforcing Ralph Lauren’s position in the global apparel and luxury lifestyle market.

The Zacks Consensus Estimate for Ralph Lauren’s current fiscal-year EPS has moved up 20 cents in the past 30 days to $18.29. Shares of RL have rallied 46% in the past year.

Price and Consensus: RL

Crocs: The designer, developer, manufacturer, marketer and distributor of casual lifestyle footwear and accessories currently carries a Zacks Rank #3 (Hold). Crocs is progressing with its long-term strategy and key initiatives aimed at delivering sustainable growth. The company is strengthening brand relevance by leveraging and expanding its iconic clog franchise through innovation while also diversifying into sandals, new product categories and personalization offerings. Crocs continues to invest in high-potential markets through targeted marketing, digital engagement and direct-to-consumer channels, alongside expanding its global distribution footprint and strengthening its presence in key international markets.

The Zacks Consensus Estimate for Crocs’ current fiscal-year EPS has remained unchanged in the past 30 days at $13.67. The stock has advanced 21.5% in the past year.

Price and Consensus: CROX

G-III Apparel: This Zacks Rank #3 company designs, sources and markets women's and men's apparel and accessories. G-III Apparel is focused on expanding its portfolio of owned brands, including DKNY, Donna Karan, Karl Lagerfeld, Vilebrequin and Marc Jacobs, while continuing to leverage a diversified portfolio of licensed brands. The company is executing a strategy centered on brand-building, category expansion and global growth opportunities. G-III continues to invest in digital capabilities, direct-to-consumer initiatives and wholesale partnerships to strengthen consumer engagement. The company also emphasizes inventory discipline, operational efficiency and supply-chain optimization to support long-term profitability and sustainable growth.

The Zacks Consensus Estimate for GIII’s current fiscal-year EPS has moved up 16 cents in the past 30 days to $2.23. Shares of G-III Apparel have surged 54.2% in the past year.

Price and Consensus: GIII