Ralph Lauren (RL - Free Report) closed at $377.40 in the latest trading session, marking a -1.19% move from the prior day. This move lagged the S&P 500's daily loss of 0.52%. Elsewhere, the Dow saw a downswing of 1.24%, while the tech-heavy Nasdaq depreciated by 0.21%.
The upscale clothing company's shares have seen an increase of 8.55% over the last month, surpassing the Consumer Discretionary sector's gain of 4.8% and the S&P 500's loss of 1.21%.
The investment community will be paying close attention to the earnings performance of Ralph Lauren in its upcoming release. The company is slated to reveal its earnings on November 5, 2026. The company is forecasted to report an EPS of $4.22, showcasing a 11.35% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $2.13 billion, indicating a 6.06% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $18.79 per share and revenue of $8.73 billion, which would represent changes of +13.26% and +7.58%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Ralph Lauren. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.04% higher. Ralph Lauren is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, Ralph Lauren currently has a Forward P/E ratio of 20.33. This indicates a premium in contrast to its industry's Forward P/E of 16.76.
It's also important to note that RL currently trades at a PEG ratio of 1.43. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Textile - Apparel was holding an average PEG ratio of 1.94 at yesterday's closing price.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 184, putting it in the bottom 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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 primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.
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, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating 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 RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. 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 LaurenThis upscale clothing company is expected to earn $18.79 per share for the fiscal year ending March 2027, which represents no year-over-year change.
Analysts have been steadily raising their estimates for Ralph Lauren. Over the past three months, the Zacks Consensus Estimate for the company has increased 2.5%.
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.
Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Ralph Lauren (RL - Free Report) , which belongs to the Zacks Textile - Apparel industry, could be a great candidate to consider.
When looking at the last two reports, this upscale clothing company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 8.93%, on average, in the last two quarters.
For the last reported quarter, Ralph Lauren came out with earnings of $4.59 per share versus the Zacks Consensus Estimate of $4.3 per share, representing a surprise of 6.74%. For the previous quarter, the company was expected to post earnings of $2.52 per share and it actually produced earnings of $2.8 per share, delivering a surprise of 11.11%.
Price and EPS Surprise
Thanks in part to this history, there has been a favorable change in earnings estimates for Ralph Lauren lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Ralph Lauren currently has an Earnings ESP of +0.56%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #2 (Buy) indicates that another beat is possibly around the corner.
When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Quarterly financial reports play a vital role on Wall Street, as they help investors see how a company has performed and what might be coming down the road in the near-term. And out of all of the metrics and results to consider, earnings is one of the most important.
The earnings figure itself is key, of course, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb and vice versa.
Now that we know how important earnings and earnings surprises are, it's time to show investors how to take advantage of these events to boost their returns by utilizing the Zacks Earnings ESP filter.
The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate.
With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure. The system also utilizes our core Zacks Rank to provide a stronger system for identifying stocks that might beat their next quarterly earnings estimate and possibly see the stock price climb.
When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% annual returns on average, according to our 10 year backtest.
Stocks with a ranking of #3 (Hold), or 60% of all stocks covered by the Zacks Rank, are expected to perform in-line with the broader market. Stocks with rankings of #2 (Buy) and #1 (Strong Buy), or the top 15% and top 5% of stocks, respectively, should outperform the market; Strong Buy stocks should outperform more than any other rank.
Should You Consider Ralph Lauren?The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to quickly look at a qualifying stock. Ralph Lauren (RL - Free Report) holds a #2 (Buy) at the moment and its Most Accurate Estimate comes in at $4.24 a share 17 days away from its upcoming earnings release on November 5, 2026.
RL has an Earnings ESP figure of +0.56%, which, as explained above, is calculated by taking the percentage difference between the $4.24 Most Accurate Estimate and the Zacks Consensus Estimate of $4.22. Ralph Lauren is one of a large database of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
RL is part of a big group of Consumer Discretionary stocks that boast a positive ESP, and investors may want to take a look at Norwegian Cruise Line (NCLH - Free Report) as well.
Norwegian Cruise Line, which is readying to report earnings on October 29, 2026, sits at a Zacks Rank #3 (Hold) right now. Its Most Accurate Estimate is currently $0.92 a share, and NCLH is 10 days out from its next earnings report.
The Zacks Consensus Estimate for Norwegian Cruise Line is $0.90, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +2.55%.
RL and NCLH's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.
Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
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What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
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.
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VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.82% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
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.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
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 and American Living.
RL is a #2 (Buy) 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 13.3% for the current fiscal year.
One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.00 to $18.79 per share. RL boasts an average earnings surprise of +8.7%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, RL should be on investors' short list.
B. Riley Wealth Advisors Inc. purchased a new position in Ralph Lauren Corporation (NYSE:RL – Free Report) during the 3rd quarter, according to its most recent disclosure with the SEC. The fund purchased 1,425 shares of the textile maker’s stock, valued at approximately $506,000.
A number of other large investors also recently modified their holdings of the business. Continuum Advisory LLC bought a new stake in Ralph Lauren in the second quarter valued at about $41,000. Annis Gardner Whiting Capital Advisors LLC boosted its holdings in Ralph Lauren by 154.9% during the first quarter. Annis Gardner Whiting Capital Advisors LLC now owns 130 shares of the textile maker’s stock valued at $45,000 after purchasing an additional 79 shares in the last quarter. Sound Income Strategies LLC acquired a new stake in Ralph Lauren during the first quarter valued at approximately $50,000. SHP Wealth Management bought a new stake in shares of Ralph Lauren in the 4th quarter valued at approximately $54,000. Finally, Parkside Financial Bank & Trust grew its stake in shares of Ralph Lauren by 27.0% in the 2nd quarter. Parkside Financial Bank & Trust now owns 179 shares of the textile maker’s stock valued at $72,000 after purchasing an additional 38 shares during the period. 67.91% of the stock is currently owned by institutional investors and hedge funds.
Ralph Lauren Trading Down 1.5% Shares of NYSE RL opened at $385.25 on Friday. The company’s 50 day simple moving average is $360.50 and its 200 day simple moving average is $370.41. Ralph Lauren Corporation has a fifty-two week low of $306.55 and a fifty-two week high of $421.60. The firm has a market capitalization of $22.95 billion, a P/E ratio of 24.28, a P/E/G ratio of 1.47 and a beta of 1.34. The company has a debt-to-equity ratio of 0.53, a current ratio of 2.04 and a quick ratio of 1.42.
Ralph Lauren (NYSE:RL – Get Free Report) last released its earnings results on Thursday, August 6th. The textile maker reported $4.59 EPS for the quarter, topping analysts’ consensus estimates of $4.32 by $0.27. The firm had revenue of $1.96 billion during the quarter, compared to analyst estimates of $1.87 billion. Ralph Lauren had a net margin of 11.76% and a return on equity of 39.10%. The business’s quarterly revenue was up 13.9% compared to the same quarter last year. During the same quarter in the previous year, the business earned $3.77 EPS. On average, analysts predict that Ralph Lauren Corporation will post 18.79 EPS for the current year. Ralph Lauren Announces Dividend The firm also recently declared a quarterly dividend, which was paid on Friday, October 9th. Shareholders of record on Friday, September 25th were paid a $1.00 dividend. This represents a $4.00 annualized dividend and a yield of 1.0%. The ex-dividend date was Friday, September 25th. Ralph Lauren’s payout ratio is presently 25.20%.
Wall Street Analysts Forecast Growth Several analysts have weighed in on the stock. Deutsche Bank Aktiengesellschaft set a $446.00 price objective on shares of Ralph Lauren in a research note on Friday, August 7th. UBS Group lifted their target price on shares of Ralph Lauren from $511.00 to $520.00 and gave the company a “buy” rating in a research note on Friday, August 7th. Telsey Advisory Group boosted their target price on Ralph Lauren from $460.00 to $470.00 and gave the stock an “outperform” rating in a report on Friday, August 7th. BTIG Research increased their price target on Ralph Lauren from $450.00 to $460.00 and gave the stock a “buy” rating in a research report on Friday, August 7th. Finally, Needham & Company LLC increased their price target on Ralph Lauren from $405.00 to $450.00 and gave the stock a “buy” rating in a research report on Thursday, August 6th. Fifteen analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $449.00.
Check Out Our Latest Analysis on Ralph Lauren
Ralph Lauren Company Profile (Free Report)
Ralph Lauren Corporation (NYSE:RL) is a global lifestyle company that designs, markets, and distributes apparel, accessories, home furnishings, fragrances, and related products. Its portfolio includes the Ralph Lauren, Polo Ralph Lauren, Lauren Ralph Lauren, Purple Label, Double RL, and other brands, which offer products across men’s, women’s, and children’s categories.
The company sells its products through company-operated stores, e-commerce platforms, department stores, specialty retailers, and selected third-party distributors.
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Ralph Lauren (RL - Free Report) closed at $384.94 in the latest trading session, marking a -1.57% move from the prior day. The stock's change was less than the S&P 500's daily loss of 1.09%. Meanwhile, the Dow lost 0.34%, and the Nasdaq, a tech-heavy index, lost 2.15%.
Shares of the upscale clothing company have appreciated by 17.41% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 0.95%, and the S&P 500's gain of 2.44%.
Analysts and investors alike will be keeping a close eye on the performance of Ralph Lauren in its upcoming earnings disclosure. The company is expected to report EPS of $4.21, up 11.08% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.13 billion, up 5.92% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $18.79 per share and a revenue of $8.73 billion, indicating changes of +13.26% and +7.55%, respectively, from the former year.
Any recent changes to analyst estimates for Ralph Lauren should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Ralph Lauren possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Ralph Lauren is currently trading at a Forward P/E ratio of 20.82. This indicates a premium in contrast to its industry's Forward P/E of 16.44.
We can additionally observe that RL currently boasts a PEG ratio of 1.47. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Textile - Apparel industry was having an average PEG ratio of 1.96.
The Textile - Apparel industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 202, placing it within the bottom 18% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Key Takeaways RL's China sales rose more than 40% in fiscal first-quarter 2027 on a constant-currency basis.RL's first Beijing Polo match reached 74 million livestream viewers as Greater China grew to 10% of sales.RL expects mid-teens China growth in fiscal 2027, with low-double-digit growth over its three-year plan.
Ralph Lauren Corporation (RL - Free Report) delivered strong growth in China in the first quarter of fiscal 2027, with sales rising more than 40% on a constant-currency basis. However, management expects growth to moderate as the company faces tougher comparisons in the second half of the fiscal year. Its brand-building initiatives, selective retail expansion and consumer engagement efforts remain central to its China strategy.
China's performance benefited from global marketing campaigns and localized brand activations. The company's first-ever Polo match in Beijing reached 74 million livestream viewers, highlighting the scale of engagement generated by the event. Ralph Lauren is also concentrating on six key Chinese city clusters, with a disciplined retail rollout and continued investment in digital channels. Management said Greater China's share of the company had risen to 10%.
Product demand offers another source of opportunity. Management described the core business in China as strong, with the women's business and handbags delivering disproportionate performance. Globally, women's apparel, outerwear and handbags collectively grew more than 20% in the quarter, outpacing total company growth.
Nevertheless, management does not expect China's recent growth rate to continue at the same pace every quarter. It anticipates mid-teens sales growth in China for fiscal 2027, citing particularly strong comparisons in the second half. Over its three-year Drive strategic plan, the company continues to target low-double-digit growth in China. The broader Asian business also delivered strong results. Regional revenues increased 25% on a constant-currency basis in the fiscal first quarter, while Japan and Korea recorded double-digit growth.
Overall, Ralph Lauren's China business has benefited from brand activations, customer engagement and a focused market strategy. Although the latest growth rate may not be repeated each quarter, management's mid-teens outlook for fiscal 2027 and low-double-digit target over its three-year plan indicate its expectations for continued growth at a more moderate pace.
The Zacks Rundown for RLThis Zacks Rank #3 (Hold) company’s shares have lost 1.5% in the past six months compared with the industry’s 4.3% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, RL trades at a forward price-to-earnings ratio of 18.71 compared with the industry’s average of 15.09.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RL’s current and next fiscal-year earnings implies a rise of 13.3% and 10.6%, respectively, from the year-ago figures.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks have been discussed below:
Vince Holding Corp. (VNCE - Free Report) provides luxury apparel and accessories in the United States and internationally. It operates through Vince Wholesale and Vince Direct-to-Consumer segments. At present, the company carries 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 VNCE’s current fiscal-year sales and earnings implies growth of 14.3% and 175%, respectively, from the year-ago reported figures. VNCE has delivered a trailing four-quarter earnings surprise of 561.4%, on average.
Kontoor Brands, Inc. (KTB - Free Report) , a lifestyle apparel company, designs, manufactures, procures, sells and licenses apparel, footwear and accessories, primarily under the Wrangler, Lee and Helly Hansen brands. At present, KTB carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for KTB’s current fiscal-year sales and earnings implies a decline of 14.3% and 6.1%, respectively, from the year-ago figures. KTB delivered a trailing four-quarter earnings surprise of 21.4%, on average.
G-III Apparel Group, Ltd. (GIII - Free Report) designs, sources, and markets women's and men's apparel in the United States and internationally. GIII currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for GIII’s current financial-year sales and earnings is expected to decline 8.4% and 13.8%, respectively, from the corresponding year-ago reported figures. GIII delivered a trailing four-quarter negative earnings surprise of 1.4%, on average.
The global luxury market shed tens of millions of shoppers in just a few years, and the shockwaves are still moving through five American stocks with very different chances of surviving the reset.
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The Investor’s Podcast Network reported the luxury industry fell from about 400 million customers in 2022 to about 330 million in 2025, losing about 70 million buyers. The reversal traces back to China, where the luxury market tripled from 2017 to 2021. Falling property values left families saving more than 30% of their disposable income, largely to prepay mortgages.
Odd Lots described the industrial side of the same shift in What Everyone Gets Wrong About the Economic Problems in Europe, saying Germany has lost over a million manufacturing jobs since 2021. The episode added: “The Chinese retaliation has been institutionalized, rapid, extensive and increasingly comprehensive. We don’t have that kind of ability to respond.” LVMH and Hermès trade in Paris. Americans can follow the same event through five U.S.-listed names, ordered here by how directly each one depends on the upscale shopper who disappeared.
1. Tapestry: Coach Recruits the Shoppers Others Lost Tapestry (NYSE:TPR | TPR Price Prediction) sells accessible luxury handbags through Coach and Kate Spade, which bring in about 87% of revenue. Coach is still adding buyers. Tapestry won 11 million new consumers in FY26, about 35% of whom were Gen Z. Greater China revenue rose 33% to $352.2 million in the fiscal fourth quarter. Shares traded at $112.50 in Thursday’s premarket, down 11.1% year to date after a 241.9% gain over five years.
Bull case: Coach’s $200 to $500 price range can win shoppers moving down from European houses. Risk: Kate Spade is expected to have a high single-digit decline in fiscal 2027. 2. Estée Lauder: China and Travel Retail Carry the Risk Estée Lauder (NYSE:EL) sells prestige beauty under Clinique, M·A·C and La Mer. China brought in $824 million of fiscal fourth-quarter revenue, up 12%. Travel retail made up about 15% of fiscal 2026 sales. Shares traded at $92.75 premarket, down 10.5% year to date and 67.9% over five years.
Bull case: fiscal 2027 adjusted EPS guidance of $3.10 to $3.35 means growth of 24% to 34%. Risk: travel retail remains exposed to Middle East disruption and retailer changes at Beijing and Shanghai airports. 3. Ralph Lauren: Inclusive Luxury Has Avoided Repricing So Far Ralph Lauren (NYSE:RL) sells “inclusive luxury” across apparel, handbags and home goods. In the fiscal first quarter, Asia revenue rose 24.3% to $589.3 million, and China grew 40%+. Greater China now accounts for 10% of the company’s revenue. The stock closed most recently at $361.14, up 3.0% year to date and 251.6% over five years.
Bull case: average unit retail rose 15% as discounting fell. Risk: management expects China growth to slow to around mid-teens, and tariff pressure builds in the second half. 4. Diageo: Tequila and White Spirits Drag The Investor’s Podcast Network cited Gallup data showing that 54% of Americans enjoy drinking socially, a record low, compared to between 60 and 70% for most of the past 80 years.
Diageo (NYSE:DEO) sells Johnnie Walker, Don Julio, and Guinness in nearly 180 countries. Fiscal 2026 organic net sales fell 2.0%. North America was down 8.4%, and tequila fell about 21%. Diageo’s China exposure comes through Chinese white spirits, which pulled Asia Pacific organic sales down 6.3%. Shares traded at $84.59 in the premarket, down 0.2%. Shares are 1.0% lower year to date and 50.6% lower over five years.
Bull case: free cash flow reached $3.21 billion, and a new operating structure targets about $850 million in savings. Risk: net debt stands at $20.50 billion, and the dividend has already been cut to $0.50 from $1.03. 5. Brown-Forman: Jack Daniel’s Faces a Drier West Brown-Forman (NYSE:BF-B) counts on Jack Daniel’s, Woodford Reserve, and Herradura. Fiscal first-quarter revenue slipped 1.0% to $911 million. Developed International sales fell 8% organically, and emerging markets grew 9%. The stock closed at $25.94, up 2.2% year to date but down 57.2% over five years.
Bull case: 42 consecutive years of dividend increases, plus 20% growth in ready-to-drink products. Risk: fiscal 2027 guidance calls for organic operating income to fall 3% to 5%. Reset or Not: Where the Cycle Stands The market has already reset three of these names. Estée Lauder, Diageo, and Brown-Forman are down 67.9%, 50.6%, and 57.2%, respectively, over five years. Ralph Lauren and Tapestry still hold five-year gains of 251.6% and 241.9%. Tapestry’s slide this year signals early revaluation, while Ralph Lauren remains up year to date.
Luxury may be closer to a bottom. All three U.S. luxury names are growing in China again, suggesting that lost shoppers return first at lower price points. Spirits remain in mid-contraction, as Americans drinking less looks like a long-term shift that could survive a confidence rebound.
Contact [email protected] for any questions or corrections.
Key Takeaways RL's women's apparel, outerwear and handbags grew more than 20% in fiscal first-quarter 2027.RL's outerwear growth was supported by lightweight styles, fleece programs and bold Polo graphics.RL sees further potential as these categories remain early in development across markets including China. Ralph Lauren Corporation (RL - Free Report) is seeing strong momentum in its high-potential categories, particularly women's apparel, outerwear and handbags. Together, these categories grew more than 20% in the first quarter of fiscal 2027, significantly ahead of the company's 13% overall revenue growth. Within outerwear, lightweight styles such as the city jacket and oversized windbreaker, along with fleece programs and bold Polo graphics, are supporting seasonal newness and consumer engagement. Meanwhile, handbag initiatives continue to emphasize the foundational Polo Play and Polo ID collections, complemented by pebbled leathers, denim, beading and seasonal raffia offerings.
The company believes these categories have substantial potential for further development, stating that Ralph Lauren is still at the beginning of its journey across women's apparel, outerwear and handbags. Management noted that the market shares achieved across these three businesses represent only the start of the opportunity, while Ralph Lauren's broad lifestyle portfolio enables it to operate across categories and price points.
The opportunity is also visible geographically. In China, management highlighted disproportionate performance from the women's and handbag businesses and said that the potential in these categories extends globally, including the Chinese market. China sales increased more than 40% in the first quarter of fiscal 2027, although management expects growth of around mid-teens for the full fiscal year as the company faces tougher comparisons in the second half.
Overall, Ralph Lauren's outerwear and handbags are emerging as important growth accelerators within its strategy to drive the core and expand into additional opportunities. These accelerators increased more than 20% in the quarter, combined with management's view that the company remains at an early stage in these categories, points to continued potential for these businesses as Ralph Lauren develops its broader lifestyle portfolio.
The Zacks Rundown for RLThis Zacks Rank #3 (Hold) company’s shares have gained 1.3% in the past six months against the industry’s 3.6% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, RL trades at a forward price-to-earnings ratio of 18.34 compared with the industry’s average of 14.62.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RL’s current and next fiscal-year earnings implies a rise of 13.3% and 10.6%, respectively, from the year-ago figures.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks have been discussed below:
Vince Holding Corp. (VNCE - Free Report) provides luxury apparel and accessories in the United States and internationally. It operates through Vince Wholesale and Vince Direct-to-Consumer segments. At present, the company carries 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 VNCE’s current fiscal-year sales and earnings implies growth of 12.7% and 172.7%, respectively, from the year-ago reported figures. VNCE has delivered a trailing four-quarter earnings surprise of 561.4%, on average.
Kontoor Brands, Inc. (KTB - Free Report) , a lifestyle apparel company, designs, manufactures, procures, sells and licenses apparel, footwear and accessories, primarily under the Wrangler, Lee and Helly Hansen brands. At present, KTB carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for KTB’s current fiscal-year sales and earnings implies a decline of 14.3% and 6.1%, respectively, from the year-ago figures. KTB delivered a trailing four-quarter earnings surprise of 21.4%, on average.
Savers Value Village, Inc. (SVV - Free Report) , a thrift operator, sells second-hand merchandise in retail stores in the United States, Canada and Australia. SVV currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for SVV’s current financial-year sales and earnings is expected to rise 6.1% and 6.7%, respectively, from the corresponding year-ago reported figures. SVV delivered a trailing four-quarter negative earnings surprise of 1.6%, on average.
Ralph Lauren (RL - Free Report) closed at $362.66 in the latest trading session, marking a +2.14% move from the prior day. This move outpaced the S&P 500's daily gain of 0.2%. Meanwhile, the Dow gained 0.04%, and the Nasdaq, a tech-heavy index, added 0.04%.
The upscale clothing company's stock has climbed by 5.52% in the past month, exceeding the Consumer Discretionary sector's loss of 6.95% and the S&P 500's loss of 0.35%.
The investment community will be closely monitoring the performance of Ralph Lauren in its forthcoming earnings report. The company's upcoming EPS is projected at $4.21, signifying a 11.08% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $2.13 billion, reflecting a 5.92% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $18.79 per share and revenue of $8.73 billion, indicating changes of +13.26% and +7.55%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Ralph Lauren should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Ralph Lauren is currently a Zacks Rank #3 (Hold).
In the context of valuation, Ralph Lauren is at present trading with a Forward P/E ratio of 18.9. This denotes a premium relative to the industry average Forward P/E of 14.97.
It is also worth noting that RL currently has a PEG ratio of 1.33. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Textile - Apparel industry had an average PEG ratio of 1.82 as trading concluded yesterday.
The Textile - Apparel industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 164, this industry ranks in the bottom 34% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Key Takeaways RL's global wholesale revenues grew 13% in constant currency in fiscal first-quarter 2027.RL's North America wholesale revenues rose 22%, supported by strong sellouts and replenishment orders.RL is reducing off-price sales and lower-tier stores to strengthen wholesale quality and brand positioning. Ralph Lauren Corporation’s (RL - Free Report) wholesale strategy is supporting top-line momentum while the company continues to improve the quality of sales by emphasizing stronger full-price performance and more selective distribution. In the first quarter of fiscal 2027, the wholesale strategy increasingly emphasized quality, with the company benefiting from stronger full-price wholesale trends while accelerating its planned reduction in off-price sales and exits from lower-tier full-price stores.
In the first quarter of fiscal 2027, global wholesale revenues grew 13% in constant currency. This was led by North America wholesale revenues, which increased 22%, supported by strong spring sellout trends, replenishment orders, resumed shipments to a luxury wholesale account and shipment timing from the fourth quarter of fiscal 2026. Approximately 15 percentage points of the increase came from shipment timing and resumed shipments, while management characterized the underlying growth as healthy.
The company is seeing stronger-than-expected trends in its full-price wholesale business, supporting an acceleration of its strategic reduction in off-price sales and exit from lower-tier full-price stores during the back half of the year. These actions align with the company’s broader efforts to elevate its positioning in the wholesale channel and improve quality of sales. As a result, management continues to expect stronger North American wholesale performance in the first half of fiscal 2027, followed by a more pronounced impact from these strategic reductions in the second half. The company expects these reductions to more than offset underlying full-price growth and result in modest North America wholesale growth for fiscal 2027.
Wholesale continues to play an important role in the company’s strategy, particularly through quality wholesale. Management views quality wholesale as an effective avenue for brand discovery and new consumer recruitment. The company sees quality wholesale as a channel that can facilitate brand discovery and help recruit new consumers, particularly within its key-city ecosystems.
Overall, Ralph Lauren’s refined wholesale approach is focused on strengthening the quality of sales while further elevating the brand’s positioning in the channel. Management continues to view quality wholesale as an important part of its key-city strategy, particularly as a means of supporting brand discovery and new consumer recruitment.
The Zacks Rundown for RLRalph Lauren’s shares have lost 10.2% in the past three months compared with the industry’s 0.5% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, RL trades at a forward price-to-earnings ratio of 18.06 compared with the industry’s average of 14.98. Ralph Lauren currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RL’s current and next fiscal-year earnings implies a rise of 13.3% and 10.6%, respectively, from the year-ago figures.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks have been discussed below:
Vince Holding Corp. (VNCE - Free Report) provides luxury apparel and accessories in the United States and internationally. It operates through Vince Wholesale and Vince Direct-to-Consumer segments. At present, the company carries 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 VNCE’s current fiscal-year sales and earnings implies growth of 12.7% and 172.7%, respectively, from the year-ago reported figures. VNCE has delivered a trailing four-quarter earnings surprise of 561.4%, on average.
Kontoor Brands, Inc. (KTB - Free Report) , a lifestyle apparel company, designs, manufactures, procures, sells and licenses apparel, footwear and accessories, primarily under the Wrangler, Lee and Helly Hansen brands. At present, KTB carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for KTB’s current fiscal-year sales and earnings implies a decline of 14.3% and 6.1%, respectively, from the year-ago figures. KTB delivered a trailing four-quarter earnings surprise of 21.4%, on average.
Savers Value Village, Inc. (SVV - Free Report) , a thrift operator, sells second-hand merchandise in retail stores in the United States, Canada and Australia. SVV currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for SVV’s current financial-year sales and earnings is expected to rise 6.1% and 6.7%, respectively, from the corresponding year-ago reported figures. SVV delivered a trailing four-quarter negative earnings surprise of 1.6%, on average.
In the latest close session, Ralph Lauren (RL - Free Report) was up +1.41% at $339.82. The stock's change was less than the S&P 500's daily gain of 1.49%. Meanwhile, the Dow experienced a rise of 0.71%, and the technology-dominated Nasdaq saw an increase of 2.26%.
The stock of upscale clothing company has fallen by 10.06% in the past month, lagging the Consumer Discretionary sector's loss of 7% and the S&P 500's gain of 0.1%.
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 $4.21, signifying a 11.08% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $2.13 billion, indicating a 5.92% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $18.79 per share and revenue of $8.73 billion, which would represent changes of +13.26% and +7.55%, respectively, from the prior year.
Any recent changes to analyst estimates for Ralph Lauren should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Ralph Lauren holds a Zacks Rank of #3 (Hold).
Digging into valuation, Ralph Lauren currently has a Forward P/E ratio of 17.84. This signifies a premium in comparison to the average Forward P/E of 14.83 for its industry.
One should further note that RL currently holds a PEG ratio of 1.26. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Textile - Apparel industry stood at 1.87 at the close of the market yesterday.
The Textile - Apparel industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 180, which puts it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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.
Key Takeaways RL opened 22 owned and partner stores, including new locations in Los Angeles, Palo Alto and Istanbul.Global DTC comps rose 12%, while Asia sales increased 25% across all key markets.RL's China sales grew more than 40% as the company expanded across top city clusters and digital channels. Ralph Lauren Corporation (RL - Free Report) continued to expand its global retail presence, opening 22 new owned and partner stores during the quarter. The new locations included The Grove in Los Angeles and the Stanford Shopping Center in Palo Alto, marking the company’s second store in the Bay Area ecosystem and first in Silicon Valley. The company also opened in Istanbul, new Polo stores in Sydney and Perth and renovated the Bicester outlet outside London. The Palo Alto store and renovated Bicester outlet also include Ralph’s Coffee.
The company highlighted that its Win in Key Cities strategy focuses on strengthening its presence across the company’s top 30 global cities while laying the groundwork for long-term growth in the next 20 cities.
The strategy was accompanied by strong Direct-to-Customer (DTC) momentum. Global DTC comps increased 12%, led by Ralph Lauren stores and digital commerce. Asia remained the leading region for growth, with sales increasing 25% across all key markets. China continued to perform strongly, with sales increasing more than 40% as the company continued to build its brand in the market. Local activations, including the Polo Cup, supported performance in China, along with further expansion across its top six city clusters and on digital.
However, management is maintaining a disciplined approach to expansion and a prudent view of the consumer environment in Europe, where macroeconomic pressures remain. The company recently opened a new store in Saint-Tropez while continuing to monitor the broader consumer context.
Overall, Ralph Lauren’s continued expansion across key city ecosystems is intended to deepen its presence in important markets, while strong DTC performance and international growth provide continued momentum for the company’s global expansion strategy.
The Zacks Rundown for RLRalph Lauren’s shares have lost 1.2% in the past six months compared with the industry’s 4.5% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, RL trades at a forward price-to-earnings ratio of 16.98 compared with the industry’s average of 14.40. Ralph Lauren currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RL’s current and next fiscal-year earnings implies a rise of 13.3% and 10.6%, respectively, from the year-ago figures.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks have been discussed below:
Kontoor Brands, Inc. (KTB - Free Report) , a lifestyle apparel company, designs, manufactures, procures, sells and licenses apparel, footwear and accessories, primarily under the Wrangler, Lee and Helly Hansen brands. At present, KTB carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for KTB’s current fiscal-year sales and earnings implies a decline of 14.3% and 6.1%, respectively, from the year-ago figures. KTB delivered a trailing four-quarter earnings surprise of 21.4%, on average.
Savers Value Village, Inc. (SVV - Free Report) , a thrift operator, sells second-hand merchandise in retail stores in the United States, Canada and Australia. SVV currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for SVV’s current financial-year sales and earnings is expected to rise 6.1% and 6.7%, respectively, from the corresponding year-ago reported figures. SVV delivered a trailing four-quarter negative earnings surprise of 1.6%, on average.
Vince Holding Corp. (VNCE - Free Report) provides luxury apparel and accessories in the United States and internationally. It operates through Vince Wholesale and Vince Direct-to-Consumer segments. At present, the company carries a Zacks Rank of 2.
The Zacks Consensus Estimate for VNCE’s current fiscal-year sales and earnings implies growth of 12.7% and 172.7%, respectively, from the year-ago reported figures. VNCE has delivered a trailing four-quarter earnings surprise of 561.4%, on average.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Ralph Lauren (RL - Free Report) .
Ralph Lauren currently has an average brokerage recommendation (ABR) of 1.42, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 19 brokerage firms. An ABR of 1.42 approximates between Strong Buy and Buy.
Of the 19 recommendations that derive the current ABR, 14 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 73.7% and 10.5% of all recommendations.
Brokerage Recommendation Trends for RL
Check price target & stock forecast for Ralph Lauren here>>>
While the ABR calls for buying Ralph Lauren, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is RL a Good Investment?In terms of earnings estimate revisions for Ralph Lauren, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $18.79.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Ralph Lauren. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Ralph Lauren.
Ralph Lauren (NYSE:RL – Get Free Report) and Birkenstock (NYSE:BIRK – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, risk, valuation and profitability.
Analyst Ratings This is a summary of current recommendations for Ralph Lauren and Birkenstock, as provided by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Ralph Lauren 0 2 16 0 2.89 Birkenstock 0 6 13 0 2.68 Ralph Lauren currently has a consensus target price of $445.67, suggesting a potential upside of 31.90%. Birkenstock has a consensus target price of $52.50, suggesting a potential upside of 72.62%. Given Birkenstock’s higher possible upside, analysts clearly believe Birkenstock is more favorable than Ralph Lauren.
Risk and Volatility Ralph Lauren has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500. Comparatively, Birkenstock has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500. Earnings and Valuation This table compares Ralph Lauren and Birkenstock”s gross revenue, earnings per share and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Ralph Lauren $8.11 billion 2.48 $941.10 million $15.87 21.29 Birkenstock $2.32 billion 2.33 $385.46 million $2.13 14.28 Ralph Lauren has higher revenue and earnings than Birkenstock. Birkenstock is trading at a lower price-to-earnings ratio than Ralph Lauren, indicating that it is currently the more affordable of the two stocks.
Profitability This table compares Ralph Lauren and Birkenstock’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Ralph Lauren 11.76% 39.10% 14.11% Birkenstock 14.82% 13.36% 7.21% Insider & Institutional Ownership 67.9% of Ralph Lauren shares are owned by institutional investors. Comparatively, 19.9% of Birkenstock shares are owned by institutional investors. 37.2% of Ralph Lauren shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary Ralph Lauren beats Birkenstock on 12 of the 14 factors compared between the two stocks.
About Ralph Lauren (Get Free Report)
Ralph Lauren Corporation designs, markets, and distributes lifestyle products in North America, Europe, Asia, and internationally. The company offers apparel, including a range of men’s, women’s, and children’s clothing; footwear and accessories, which comprise casual shoes, dress shoes, boots, sneakers, sandals, eyewear, watches, fashion and fine jewelry, scarves, hats, gloves, and umbrellas, as well as leather goods, such as handbags, luggage, small leather goods, and belts; home products consisting of bed and bath lines, furniture, fabric and wallcoverings, floor coverings, lighting, tabletop, kitchen linens, floor coverings, dining, decorative accessories, and giftware; and fragrances. It sells apparel and accessories under the Ralph Lauren Collection, Ralph Lauren Purple Label, Polo Ralph Lauren, Double RL, Lauren Ralph Lauren, Polo Golf Ralph Lauren, Ralph Lauren Golf, RLX Ralph Lauren, Polo Ralph Lauren Children, and Chaps brands; women’s fragrances under the Ralph Lauren Collection, Woman by Ralph Lauren, Romance Collection, and Ralph Collection brand names; and men’s fragrances under the Ralph’s Club, Purple Label, Polo Blue, Polo Red, Polo Green, Polo Black, Polo 67, Safari, Polo Sport, and Big Pony Men’s brand names. The company’s restaurant collection includes The Polo Bar in New York City; RL Restaurant in Chicago; Ralph’s in Paris; The Bar at Ralph Lauren located in Milan; Ralph’s Bar located in Chengdu, China; and Ralph’s Coffee concept. It sells its products to department stores, specialty stores, and golf and pro shops, as well as directly to consumers through its retail stores, concession-based shop-within-shops, and its digital commerce sites. The company directly operates retail stores and concession-based shop-within-shops; and operates Ralph Lauren stores and stores and shops through licensing partners. Ralph Lauren Corporation was founded in 1967 and is headquartered in New York, New York.
About Birkenstock (Get Free Report)
Birkenstock Holding plc manufactures and sells footwear products. It also offers sandals, shoes, closed-toe silhouettes, skincare products, and accessories. The company sells its products through e-commerce sites and a network of owned retail stores, as well as business-to-business channels. It operates in the United States, Brazil, Canada, Mexico, Europe, APMA, and internationally. Birkenstock Holding plc was founded in 1774 and is based in London, the United Kingdom. Birkenstock Holding plc is a subsidiary of BK LC Lux MidCo S.à r.l.
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Ralph Lauren (RL - Free Report) closed the most recent trading day at $335.23, moving -1.82% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.45%. At the same time, the Dow lost 0.63%, and the tech-heavy Nasdaq lost 0.78%.
The stock of upscale clothing company has fallen by 9.99% in the past month, lagging the Consumer Discretionary sector's loss of 4.05% and the S&P 500's loss of 1.99%.
Investors will be eagerly watching for the performance of Ralph Lauren in its upcoming earnings disclosure. The company is predicted to post an EPS of $4.21, indicating a 11.08% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.13 billion, up 5.92% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $18.79 per share and revenue of $8.73 billion. These totals would mark changes of +13.26% and +7.55%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Ralph Lauren. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, Ralph Lauren is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Ralph Lauren is presently being traded at a Forward P/E ratio of 18.17. This represents a premium compared to its industry average Forward P/E of 15.42.
We can additionally observe that RL currently boasts a PEG ratio of 1.28. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Textile - Apparel industry held an average PEG ratio of 1.91.
The Textile - Apparel industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 102, this industry ranks in the top 42% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow RL in the coming trading sessions, be sure to utilize Zacks.com.
Key Takeaways RL's marketing investment rose to 8.2% of sales in fiscal 2027's first quarter from 7.5% a year earlier.RL will use global campaigns, fashion shows and Wimbledon activations to deepen consumer engagement.RL expects marketing to remain near 8% of sales in 2027, supported by strong returns from brand building. Ralph Lauren Corporation (RL - Free Report) continues to view marketing investments as important drivers of long-term brand desirability, customer acquisition and lifetime value. In the first quarter of fiscal 2027, marketing increased to 8.2% of sales from 7.5% a year earlier, reflecting higher investment in key brand-building activations around the world. These included the spring global campaign and the men’s fashion show, as the company continued to invest in strengthening its brand and engaging consumers.
The company continues to build brand desirability through distinctive storytelling and immersive marketing initiatives. It is amplifying evergreen platforms such as Wimbledon, including the recently created Grass Court in Central Park, while continuing to launch campaigns aimed at engaging women, luxury and next-generation consumers.
Ralph Lauren expects marketing investment to remain an important part of its growth strategy, supported by what management describes as strong ROI from these activities. The company remains comfortable with its approximately 8% marketing investment guide for fiscal 2027, while noting that marketing is not viewed as having a fixed ceiling.
Management said that the impact and returns from its marketing investments have been an important factor behind its willingness to continue increasing spending over time.
Management remains comfortable with the marketing investment planned for the year, reflecting the strong returns it is seeing from its brand-building activities. Looking ahead, as the company continues to expand operating margins, it expects to further invest in marketing, reinforcing its focus on strengthening brand desirability and consumer engagement. Overall, Ralph Lauren views marketing as a long-term growth investment, with the impact reflected in stronger brand equity, new customer recruitment, retention, customer value.
The Zacks Rundown for RLRalph Lauren’s shares have lost 16% in the past three months compared with the industry’s 3% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, RL trades at a forward price-to-earnings ratio of 17.33 compared with the industry’s average of 14.55. Ralph Lauren currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RL’s current and next fiscal-year earnings implies a rise of 13.3% and 10.6%, respectively, from the year-ago figures.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks have been discussed below:
Kontoor Brands, Inc. (KTB - Free Report) , a lifestyle apparel company, designs, manufactures, procures, sells and licenses apparel, footwear and accessories, primarily under the Wrangler, Lee and Helly Hansen brands. At present, KTB carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for KTB’s current fiscal-year sales and earnings implies a decline of 14.3% and 6.1%, respectively, from the year-ago figures. KTB delivered a trailing four-quarter earnings surprise of 21.4%, on average.
Savers Value Village, Inc. (SVV - Free Report) , a thrift operator, sells second-hand merchandise in retail stores in the United States, Canada and Australia. SVV currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for SVV’s current financial-year sales and earnings is expected to rise 6.1% and 6.7%, respectively, from the corresponding year-ago reported figures. SVV delivered a trailing four-quarter negative earnings surprise of 1.6%, 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 SGC’s current fiscal-year sales and earnings implies growth of 3.1% and 39.1%, respectively, from the year-ago reported figures. SGC delivered a trailing four-quarter negative earnings surprise of 90.2%, on average.
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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.
#1 (Strong Buy) stocks have produced an unmatched +23.8% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
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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.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
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 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 A, forecasting year-over-year earnings growth of 13.3% for the current fiscal year.
Seven analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.45 to $18.79 per share. RL boasts an average earnings surprise of +8.7%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, RL should be on investors' short list.
NEW YORK--(BUSINESS WIRE)--Ralph Lauren Corporation (NYSE:RL) today reported first-year progress against Timeless by Design 2030, the Company's current phase of its Global Citizenship & Sustainability (GC&S) strategy, announced in March 2026. Details of Ralph Lauren's progress can be found on its corporate website and within its annual GC&S Report, which is focused on topics material to Ralph Lauren's operations. Guided by its Purpose — to inspire the dream of a better life through.
Key Takeaways RL added 1.5 million new DTC customers as brand equity metrics continued to improve. Core products grew at a mid-teens rate, while women's apparel, outerwear and handbags rose more than 20%. RL's AUR increased 15% in fiscal first-quarter 2027 after more than nine years of growth. Ralph Lauren Corporation (RL - Free Report) continues to build its position at the intersection of culture, style and luxury, attracting new generations while deepening connections with existing consumers around the world. Ralph Lauren has built strong luxury credentials across geographies, reflected in its consumer base, business performance and continued ability to attract new consumers to the brand. The company occupies a distinct position within luxury through its concept of inclusive luxury, spanning multiple categories and price points across its lifestyle portfolio.
Built on a brand-elevation journey spanning nearly a decade, this strategy has supported more than nine years of Average Unit Retail (AUR) growth, with AUR increasing 15% in the first quarter of fiscal 2027. Brand equity metrics have continued to improve, including higher Net Promoter Scores and luxury perception scores. Consumers continue to see distinctive value across Ralph Lauren’s offerings, from handbags and outerwear to other categories. This positioning gives Ralph Lauren a distinct place within luxury while supporting its connection with consumers across generations, categories and markets.
Ralph Lauren added 1.5 million new DTC customers in the first quarter, led by its stores and digital commerce sites, while brand equity metrics continued to improve, including NPS and luxury perception scores. Social media followers also increased by high single digits to more than 70 million. Core products, representing more than 70% of the business, grew at a mid-teens rate, supported by foundational offerings. Meanwhile, high-potential categories including women’s apparel, outerwear and handbags collectively increased more than 20% in the quarter, outpacing total company growth.
Management believes a healthier luxury market could provide a tailwind by supporting stronger traffic and consideration while aligning with Ralph Lauren’s elevated positioning. Overall, Ralph Lauren’s brand strength and luxury positioning are supporting multiple growth drivers, including new customer recruitment, continued development of high-potential categories and expansion across key markets.
The Zacks Rundown for RLRalph Lauren’s shares have lost 7.7% in the past three months compared with the industry’s 1.3% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, RL trades at a forward price-to-earnings ratio of 17.66 compared with the industry’s average of 14.41. Ralph Lauren currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RL’s current and next fiscal-year earnings implies a rise of 13.3% and 10.6%, respectively, from the year-ago figures.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks have been discussed below:
Kontoor Brands, Inc. (KTB - Free Report) , a lifestyle apparel company, designs, manufactures, procures, sells and licenses apparel, footwear and accessories, primarily under the Wrangler, Lee and Helly Hansen brands. At present, KTB carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for KTB’s current fiscal-year sales and earnings implies a decline of 14.3% and 6.1%, respectively, from the year-ago figures. KTB delivered a trailing four-quarter earnings surprise of 21.4%, on average.
Savers Value Village, Inc. (SVV - Free Report) , a thrift operator, sells second-hand merchandise in retail stores in the United States, Canada and Australia. SVV currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for SVV’s current financial-year sales and earnings is expected to rise 6.1% and 6.7%, respectively, from the corresponding year-ago reported figures. SVV delivered a trailing four-quarter negative earnings surprise of 1.6%, 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 SGC’s current fiscal-year sales and earnings implies growth of 3.1% and 39.1%, respectively, from the year-ago reported figures. SGC delivered a trailing four-quarter negative earnings surprise of 90.2%, on average.
SEOUL, South Korea--(BUSINESS WIRE)--Ralph Lauren (NYSE:RL) today announced a partnership with the Korea National Cancer Center Foundation to establish The Ralph Lauren Center for Patient and Family Recovery at the National Cancer Center of Korea (NCC) in Goyang, South Korea, marking the first Ralph Lauren cancer center in Asia. Building on Ralph Lauren's longstanding support for cancer prevention and treatment efforts, the new center represents the next chapter in its commitment to expanding a.
Groupe la Francaise lowered its position in shares of Ralph Lauren Corporation (NYSE:RL – Free Report) by 14.2% in the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 60,995 shares of the textile maker’s stock after selling 10,118 shares during the period. Groupe la Francaise owned approximately 0.10% of Ralph Lauren worth $24,505,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
A number of other large investors have also recently added to or reduced their stakes in the business. California State Teachers Retirement System grew its position in Ralph Lauren by 38,897.9% in the second quarter. California State Teachers Retirement System now owns 17,584,166 shares of the textile maker’s stock worth $7,058,460,000 after acquiring an additional 17,539,076 shares during the period. Invesco Ltd. raised its position 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 purchasing an additional 275,263 shares during the period. Geode Capital Management LLC lifted its stake in shares of Ralph Lauren by 5.5% in the 4th quarter. Geode Capital Management LLC now owns 1,050,543 shares of the textile maker’s stock valued at $370,852,000 after purchasing an additional 54,686 shares during the last quarter. Orion Porfolio Solutions LLC lifted its stake in shares of Ralph Lauren by 8,937.8% in the 2nd quarter. Orion Porfolio Solutions LLC now owns 963,340 shares of the textile maker’s stock valued at $264,225,000 after purchasing an additional 952,681 shares during the last quarter. Finally, Qube Research & Technologies Ltd lifted its stake in shares of Ralph Lauren by 11.7% in the 3rd quarter. Qube Research & Technologies Ltd now owns 941,832 shares of the textile maker’s stock valued at $295,321,000 after purchasing an additional 98,511 shares during the last quarter. 67.91% of the stock is currently owned by institutional investors and hedge funds.
Analysts Set New Price Targets A number of analysts recently issued reports on the company. UBS Group raised their price objective on Ralph Lauren from $511.00 to $520.00 and gave the stock a “buy” rating in a research report on Friday, August 7th. Needham & Company LLC upped their target price on shares of Ralph Lauren from $405.00 to $450.00 and gave the company a “buy” rating in a research report on Thursday, August 6th. Raymond James Financial reaffirmed an “outperform” rating and set a $425.00 target price on shares of Ralph Lauren in a research note on Friday, August 7th. JPMorgan Chase & Co. boosted their price target on shares of Ralph Lauren from $434.00 to $452.00 and gave the company an “overweight” rating in a research note on Tuesday, August 4th. Finally, Citigroup upped their price objective on shares of Ralph Lauren from $400.00 to $455.00 and gave the stock a “buy” rating in a report on Friday, August 7th. Sixteen equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, Ralph Lauren currently has a consensus rating of “Moderate Buy” and a consensus target price of $445.67.
Check Out Our Latest Stock Analysis on Ralph Lauren Ralph Lauren Price Performance RL opened at $351.08 on Monday. The firm has a market cap of $20.92 billion, a price-to-earnings ratio of 22.12, a PEG ratio of 1.32 and a beta of 1.34. The company has a current ratio of 2.04, a quick ratio of 1.42 and a debt-to-equity ratio of 0.53. The stock’s 50-day moving average price is $378.68 and its 200 day moving average price is $369.98. Ralph Lauren Corporation has a 12-month low of $299.98 and a 12-month high of $421.60.
Ralph Lauren (NYSE:RL – Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The textile maker reported $4.59 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.32 by $0.27. Ralph Lauren had a net margin of 11.76% and a return on equity of 39.10%. The company had revenue of $1.96 billion for the quarter, compared to analyst estimates of $1.87 billion. During the same period in the prior year, the firm earned $3.77 earnings per share. The business’s revenue for the quarter was up 13.9% compared to the same quarter last year. As a group, sell-side analysts expect that Ralph Lauren Corporation will post 18.79 earnings per share for the current year.
Ralph Lauren Company 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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A downtrend has been apparent in Ralph Lauren (RL - Free Report) lately with too much selling pressure. The stock has declined 11.6% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround.
We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.
RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.
Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.
So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefiting from the inevitable rebound.
However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.
Here's Why RL Could Experience a TurnaroundThe heavy selling of RL shares appears to be in the process of exhausting itself, as indicated by its RSI reading of 25.1. So, the trend for the stock could reverse soon for reaching the old equilibrium of supply and demand.
The RSI value is not the only factor that indicates a potential turnaround for the stock in the near term. On the fundamental side, there has been strong agreement among the sell-side analysts covering the stock in raising earnings estimates for the current year. Over the last 30 days, the consensus EPS estimate for RL has increased 2.5%. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.
Moreover, RL currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Key Takeaways RL improved digital user experiences and expanded brand discoverability across key large language models.Ralph Lauren added 1.5 million new direct-to-consumer customers, led by stores and digital commerce sites.AI tests and advanced analytics help RL understand evolving consumer behavior and strengthen engagement. Ralph Lauren Corporation (RL - Free Report) continues to invest strategically in advanced analytics, technology and artificial intelligence to better serve consumers and improve efficiency across its operations. As part of this effort, the company is advancing capabilities designed to enhance creativity, productivity and customer engagement. These investments reflect Ralph Lauren's broader focus on using technology and analytics to strengthen its capabilities while supporting consumers and business operations.
In the first quarter of fiscal 2027, the company continued to advance its digital and AI capabilities by improving user experiences across its digital commerce sites and expanding brand discoverability across key large language models. Ralph Lauren also participated in select AI tests to better understand evolving consumer behavior on these newer platforms. These initiatives reflect the company's efforts to improve brand discoverability on emerging digital platforms and gain a better understanding of how consumers engage with its brands through these platforms.
The company also expanded its direct-to-consumer customer base, adding 1.5 million new customers during the period, led by its digital commerce sites and stores . It continued to make progress across key brand equity measures, including higher Net Promoter Scores and improved luxury perception scores. The company also continued recruiting key consumer groups, including women, luxury consumers and younger customers. Together, these developments indicate continued progress in customer recruitment and key measures of consumer and brand perception.
Overall, Ralph Lauren's AI and digital initiatives appear focused on improving online user experiences, expanding brand discoverability and helping the company better understand evolving consumer behavior. These efforts could support stronger customer engagement and contribute to an improved customer experience over time.
The Zacks Rundown for RLRalph Lauren’s shares have lost 4.2% in the past three months against the industry’s 2% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, RL trades at a forward price-to-earnings ratio of 17.36 compared with the industry’s average of 14.71. Ralph Lauren currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RL’s current and next fiscal-year earnings implies a rise of 13.3% and 10.6%, respectively, from the year-ago figures.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks have been discussed below:
Kontoor Brands, Inc. (KTB - Free Report) , a lifestyle apparel company, designs, manufactures, procures, sells and licenses apparel, footwear and accessories, primarily under the Wrangler, Lee and Helly Hansen brands. At present, KTB carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for KTB’s current fiscal-year sales and earnings implies a decline of 14.3% and 6.1%, respectively, from the year-ago figures. KTB delivered a trailing four-quarter earnings surprise of 21.4%, on average.
Savers Value Village, Inc. (SVV - Free Report) , a thrift operator, sells second-hand merchandise in retail stores in the United States, Canada and Australia. SVV currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for SVV’s current financial-year sales and earnings is expected to rise 6.1% and 6.7%, respectively, from the corresponding year-ago reported figures. SVV delivered a trailing four-quarter negative earnings surprise of 1.6%, 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 SGC’s current fiscal-year sales and earnings implies growth of 3.1% and 39.1%, respectively, from the year-ago reported figures. SGC delivered a trailing four-quarter negative earnings surprise of 90.2%, on average.
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I regretted not bringing my own hat. Alice Tecotzky A vodka-stained, plastic Honey Deuce cup isn't the only badge of US Open honor.
Between its five different merchandise stores, most of which have multiple outposts, the annual tennis tournament also offers a lengthy list of non-alcoholic souvenir options. There are the usual polos and hats, but also racquet-wielding rubber ducks, candles that smell like cocktails, and stuffed bears in pink tennis skirts.
Employees at one of the "US Open Collection" stores said some products were already nearly out of stock, and as I meandered through the racks on Monday, I overheard some shoppers learning that, no, there weren't more sizes in the back.
A somewhat bewildered cashier told me most people spend hundreds of dollars, often on the most basic hats. He said he wouldn't buy anything at the store, though that might be because he doesn't like tennis.
The US Open doesn't share specific sales figures, but a representative said in an email that they're approaching "record-breaking retail sales this year." Here are some of the most popular items, according to employees at the store on August 31.
Anything Honey Deuce
All Honey Deuce merch is apparently a hit. Alice Tecotzky One employee told me that "anything Honey Deuce sells," and pointed out a $48 women's top and a $50 men's top. I spotted a fan wearing one of the shirts outside the store, walking with a friend wearing a new Honey Deuce cap. The store is also selling a citrus and honeysuckle-scented candle for $40.
Crop tops are forever
The black baby tee was nearly sold out. Alice Tecotzky Kudos to whoever suggested selling a crop top. The store started stocking the item last year and is already almost sold out of its stash of black $52 baby tees, the same employee told me.
There were only four left when I stopped by around noon, all in XL, but at least nine were on display when I returned around 3 pm.
Peter Millar polos
Peter Millar polos were especially popular with dads, one employee said. Alice Tecotzky Another employee said Peter Millar polos have been popular this year, especially with dads willing to pay $138. As we were talking, a middle-aged man summoned his shopping companion to compare two pattern options.
The hat wall
Long live the hat wall. Alice Tecotzky After sitting in direct sun for an hour, I, too, was tempted by the hat wall. Two cashiers and a representative for the US Open said that hats, many of which cost $40 or $48, are the most popular items so far this year.
Mojo tees
I overheard a woman asking about whether there were more Big Apple tees in the back. Alice Tecotzky Tees from the brand Mojo are especially popular, one of the employees told me, particularly one with an apple on the back that goes for $44.
Sold-out borough sweatshirt
The sold-out Ralph Lauren sweater was selling for $675 on Poshmark. Poshmark When I stopped into the Polo Ralph Lauren store next door, one employee told me that a nearly $200 white sweatshirt with New York City's boroughs on the back was already sold out. The sweatshirt was sold out online, too, as of Monday night, and listed for $675 on Poshmark.
Varsity jacket
Ralph Lauren's varsity jacket sells for almost $600. Alice Tecotzky The same employee said that the $598 varsity jacket with the same borough design on the back was also super popular. He expected they'd be sold out in a week, even though it's one of the most expensive items in the store.
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Alice Tecotzky You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Alice Tecotzky is a reporter on the Finance desk, based in New York City. She writes about JPMorgan and what it's like to work on Wall Street. Have a tip? Email her at [email protected], reach her on Signal at alicetecotzky.05, or follow her on X @atecotzky.Alice graduated from Columbia University in May 2024 with a degree in English. Before she joined Business Insider, she covered breaking news at the Daily Beast and education at the Atlanta Journal-Constitution.
Companies in the Zacks Textile - Apparel industry are benefiting from improving store traffic and continued digital growth. To enhance customer engagement and meet evolving consumer expectations, industry players are investing in e-commerce platforms, mobile applications, omnichannel fulfillment and AI-driven tools. These initiatives are helping companies integrate physical and digital channels, improve convenience and product discovery, and boost operational efficiency across the customer journey.
Textile-apparel companies are also strengthening brand equity through product innovation, marketing initiatives, licensing agreements, strategic partnerships and portfolio expansion. However, cost pressures, tariffs and geopolitical uncertainties remain challenges, prompting companies to emphasize sourcing efficiencies, supply-chain diversification, inventory discipline and cost controls. 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, AI adoption is enhancing customer engagement, product discovery, inventory management and operational efficiency, enabling greater 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. Companies are also expanding into new categories, geographies and channels to increase brand reach. Strong brands with differentiated offerings are better positioned to drive customer loyalty, expand market share and support sustainable growth.
Cost and Trade Headwinds: Textile-apparel companies continue to operate in an environment marked by cost pressures and trade-related uncertainty. Fluctuations in sourcing expenses, labor costs, transportation rates and tariffs remain areas of concern. In addition, evolving trade policies 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, automation and cost-control initiatives while continuing to invest in growth.
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 #93, which places it in the top 38% of more than 246 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 outperformed the broader Zacks Consumer Discretionary sector but lagged the S&P 500 composite over the past year.
The industry has declined 4.8% compared with the broader sector’s fall of 13.9%. Meanwhile, the S&P 500 has increased 21.3%.
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 14.86X compared with the S&P 500’s 20.37X and the sector’s 16.63X.
Over the past five years, the industry has traded as high as 23.46X and as low as 12.87X, with the median being 16.98X, as the chart shows.
Price-to-Earnings Ratio (Past 5 Years)
4 Must-Watch Textile-Apparel Stocks Crocs: The designer, developer, manufacturer, marketer and distributor of casual lifestyle footwear and accessories currently carries a Zacks Rank #2 (Buy). Crocs continues to leverage its iconic clog franchise while diversifying the product portfolio across sandals, lifestyle, recovery and other categories, alongside expanding personalization, bags and accessories. The company supports brand engagement through product innovation, collaborations, social and digital marketing, social commerce and direct-to-consumer channels, while maintaining a broad wholesale and marketplace presence. Crocs is also expanding its international footprint and strengthening presence across key global markets through localized products, digital engagement and an expanding network of stores and distribution channels. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Crocs’ current fiscal-year EPS has remained unchanged in the past seven days at $13.85. The stock has advanced 45.8% in the past year.
Price and Consensus: CROX
Ralph Lauren: This Zacks Rank #3 (Hold) company is a leading designer, marketer and distributor of premium lifestyle products. Ralph Lauren continues to execute the “Next Great Chapter: Drive” strategy, focused on elevating and energizing the lifestyle brand, strengthening its core offerings while expanding into high-potential categories, and building consumer ecosystems in key cities worldwide. The company leverages its broad lifestyle portfolio, distinctive brand storytelling and immersive experiences to deepen consumer engagement and reinforce brand desirability. Ralph Lauren also continues to expand the direct-to-consumer, digital commerce and quality wholesale channels, while investing in technology, analytics and AI capabilities to enhance consumer experiences and support its global growth.
The Zacks Consensus Estimate for Ralph Lauren’s current fiscal-year EPS has remained unchanged in the past seven days at $18.79. Shares of RL have rallied 29% in the past year.
Price and Consensus: RL
Columbia Sportswear: This Zacks Rank #3 company designs, sources, markets and distributes outdoor, active and lifestyle apparel, footwear and accessories through wholesale and direct-to-consumer channels. The company leverages a portfolio of outdoor brands and focuses on product innovation, performance technologies and elevated design to strengthen its competitive positioning. Its Columbia brand is guided by the multiyear ACCELERATE strategy, which emphasizes outdoor activities, performance, lifestyle versatility and footwear while leveraging the brand’s outdoor heritage. Columbia Sportswear also invests in digital and e-commerce capabilities, international markets, marketing and brand-building initiatives to enhance consumer engagement and support growth. In addition, the company continues to pursue operational efficiencies and disciplined cost management across its business.
The Zacks Consensus Estimate for Columbia Sportswear’s current fiscal-year earnings per share (EPS) has moved down 11 cents in the past seven days to $3.58. Shares of COLM have gained 8.4% in the past year.
Price and Consensus: COLM
G-III Apparel: This Zacks Rank #3 company designs, sources and markets women’s and men’s apparel and accessories through a diversified portfolio of owned and licensed brands. The company is evolving from a primarily licensed model toward a balanced global fashion portfolio, with greater emphasis on building and scaling owned brands while maintaining select licensing partnerships. G-III focuses on brand building, category expansion and international growth, leveraging its global wholesale platform and retail relationships alongside direct-to-consumer channels. The company also continues to invest in digital capabilities, data, AI and omnichannel infrastructure to enhance consumer engagement and profitability. In addition, G-III emphasizes disciplined inventory management, operational efficiency and strategic sourcing to support sustainable growth.
The Zacks Consensus Estimate for GIII’s current fiscal-year EPS has remained unchanged in the past seven days at $2.24. Shares of G-III Apparel have surged 26.5% in the past year.
Investors with an interest in Textile - Apparel stocks have likely encountered both Crocs (CROX) and Ralph Lauren (RL). But which of these two stocks presents investors with the better value opportunity right now?
Companies in the Zacks Textile - Apparel industry are benefiting from improving store traffic and continued digital growth. To enhance customer engagement and meet evolving consumer expectations, industry players are investing in e-commerce platforms, mobile applications, omnichannel fulfillment and AI-driven tools. These initiatives are helping companies integrate physical and digital channels, improve convenience and product discovery, and boost operational efficiency across the customer journey.
Textile-apparel companies are also strengthening brand equity through product innovation, marketing initiatives, licensing agreements, strategic partnerships and portfolio expansion. However, cost pressures, tariffs and geopolitical uncertainties remain challenges, prompting companies to emphasize sourcing efficiencies, supply-chain diversification, inventory discipline and cost controls. These trends position Ralph Lauren Corp., Crocs, Inc., Columbia Sportswear Co. and G-III Apparel Group, Ltd. to capitalize on favorable industry dynamics.
About the IndustryThe 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 IndustryImproved 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, AI adoption is enhancing customer engagement, product discovery, inventory management and operational efficiency, enabling greater 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. Companies are also expanding into new categories, geographies and channels to increase brand reach. Strong brands with differentiated offerings are better positioned to drive customer loyalty, expand market share and support sustainable growth.
Cost and Trade Headwinds:Textile-apparel companies continue to operate in an environment marked by cost pressures and trade-related uncertainty. Fluctuations in sourcing expenses, labor costs, transportation rates and tariffs remain areas of concern. In addition, evolving trade policies 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, automation and cost-control initiatives while continuing to invest in growth.
Zacks Industry Rank Indicates Bright ProspectsThe Zacks Textile – Apparel industry is housed within the broader Zacks Consumer Discretionary sector. The industry currently carries a Zacks Industry Rank #93, which places it in the top 38% of more than 246 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 MarketThe Zacks Textile - Apparel industry has outperformed the broader Zacks Consumer Discretionary sector but lagged the S&P 500 composite over the past year.
The industry has declined 4.8% compared with the broader sector’s fall of 13.9%. Meanwhile, the S&P 500 has increased 21.3%.
Industry's Current ValuationOn the basis of forward 12-month price-to-earnings (P/E), commonly used for valuing consumer discretionary stocks, the industry is currently trading at 14.86X compared with the S&P 500’s 20.37X and the sector’s 16.63X.
Over the past five years, the industry has traded as high as 23.46X and as low as 12.87X, with the median being 16.98X.
4 Must-Watch Textile-Apparel StocksCrocs: The designer, developer, manufacturer, marketer and distributor of casual lifestyle footwear and accessories currently carries a Zacks Rank #2 (Buy). Crocs continues to leverage its iconic clog franchise while diversifying the product portfolio across sandals, lifestyle, recovery and other categories, alongside expanding personalization, bags and accessories.
The company supports brand engagement through product innovation, collaborations, social and digital marketing, social commerce and direct-to-consumer channels, while maintaining a broad wholesale and marketplace presence. Crocs is also expanding its international footprint and strengthening presence across key global markets through localized products, digital engagement and an expanding network of stores and distribution channels. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Crocs’ current fiscal-year EPS has remained unchanged in the past seven days at $13.85. The stock has advanced 45.8% in the past year.
Ralph Lauren: This Zacks Rank #3 (Hold) company is a leading designer, marketer and distributor of premium lifestyle products. Ralph Lauren continues to execute the “Next Great Chapter: Drive” strategy, focused on elevating and energizing the lifestyle brand, strengthening its core offerings while expanding into high-potential categories, and building consumer ecosystems in key cities worldwide.
The company leverages its broad lifestyle portfolio, distinctive brand storytelling and immersive experiences to deepen consumer engagement and reinforce brand desirability. Ralph Lauren also continues to expand the direct-to-consumer, digital commerce and quality wholesale channels, while investing in technology, analytics and AI capabilities to enhance consumer experiences and support its global growth.
The Zacks Consensus Estimate for Ralph Lauren’s current fiscal-year EPS has remained unchanged in the past seven days at $18.79. Shares of RL have rallied 29% in the past year.
Columbia Sportswear:This Zacks Rank #3 company designs, sources, markets and distributes outdoor, active and lifestyle apparel, footwear and accessories through wholesale and direct-to-consumer channels. The company leverages a portfolio of outdoor brands and focuses on product innovation, performance technologies and elevated design to strengthen its competitive positioning.
Its Columbia brand is guided by the multiyear ACCELERATE strategy, which emphasizes outdoor activities, performance, lifestyle versatility and footwear while leveraging the brand’s outdoor heritage. Columbia Sportswear also invests in digital and e-commerce capabilities, international markets, marketing and brand-building initiatives to enhance consumer engagement and support growth. In addition, the company continues to pursue operational efficiencies and disciplined cost management across its business.
The Zacks Consensus Estimate for Columbia Sportswear’s current fiscal-year earnings per share (EPS) has moved down 11 cents in the past seven days to $3.58. Shares of COLM have gained 8.4% in the past year.
G-III Apparel: This Zacks Rank #3 company designs, sources and markets women’s and men’s apparel and accessories through a diversified portfolio of owned and licensed brands. The company is evolving from a primarily licensed model toward a balanced global fashion portfolio, with greater emphasis on building and scaling owned brands while maintaining select licensing partnerships.
G-III focuses on brand building, category expansion and international growth, leveraging its global wholesale platform and retail relationships alongside direct-to-consumer channels. The company also continues to invest in digital capabilities, data, AI and omnichannel infrastructure to enhance consumer engagement and profitability. In addition, G-III emphasizes disciplined inventory management, operational efficiency and strategic sourcing to support sustainable growth.
The Zacks Consensus Estimate for GIII’s current fiscal-year EPS has remained unchanged in the past seven days at $2.24. Shares of G-III Apparel have surged 26.5% in the past year.
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Key Takeaways RL's women's apparel, outerwear and handbags each grew more than 20% during the first quarter.RL sees significant long-term growth potential in women's apparel despite its current scale.RL plans to expand its handbag portfolio with the Blaze collection to support future growth. Ralph Lauren Corporation (RL - Free Report) delivered solid first-quarter fiscal 2027 performance in North America Retail, with comparable sales increasing 9%, supported by strength in its full-price channels. Digital comparable sales also rose 8%, aided by healthy traffic trends. Digital performance further benefited from merchandising optimization and investments in full-funnel marketing activations.
The company also reported strong global retail comparable sales growth, with total company retail comps increasing 12%. Growth was balanced between Ralph Lauren's own digital and brick-and-mortar channels, reflecting strength across both retail formats. Meanwhile, total digital ecosystem sales, including the company's own websites and wholesale digital accounts, grew at a mid-teens rate, with contributions from all regions.
Ralph Lauren continues to focus on technology, AI and analytics to support creativity, productivity and customer engagement. During the first quarter, the company improved user experiences across its digital commerce sites and expanded brand discoverability across key large language models. It is also participating in select AI tests to better understand evolving consumer behavior on newer platforms. These efforts are part of the company's broader strategy to leverage technology and analytics to strengthen consumer engagement and business capabilities.
The company added 1.5 million new customers to its direct-to-consumer (DTC) businesses during the first quarter, led by growth at Ralph Lauren stores and digital commerce sites. Looking ahead, Ralph Lauren expects marketing expense to represent approximately 8% of sales in fiscal 2027.
Overall, Ralph Lauren's digital business showed broad strength during the first quarter, supported by growth in digital traffic, merchandising initiatives, marketing investment and expanding customer engagement efforts. The company also continues to invest in technology, AI and analytics across its consumer ecosystem.
The Zacks Rundown for RLRalph Lauren’s shares have lost 2.4% in the past three months against the industry’s 6.9% growth. The company currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
From a valuation standpoint, RL trades at a forward price-to-earnings ratio of 18.49X compared with the industry’s average of 15.05X. Ralph Lauren currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RL’s current and next fiscal-year earnings implies a rise of 13.3% and 10.6%, respectively, from the year-ago figures.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks have been discussed below:
Kontoor Brands, Inc. (KTB - Free Report) , a lifestyle apparel company, designs, manufactures, procures, sells and licenses apparel, footwear and accessories, primarily under the Wrangler, Lee and Helly Hansen brands. At present, KTB carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for KTB’s current fiscal-year sales and earnings implies a decline of 14.3% and 6.1%, respectively, from the year-ago figures. KTB delivered a trailing four-quarter earnings surprise of 21.4%, on average.
Savers Value Village, Inc. (SVV - Free Report) , a thrift operator, sells second-hand merchandise in retail stores in the United States, Canada and Australia. SVV currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for SVV’s current financial-year sales and earnings is expected to rise 6.1% and 6.7%, respectively, from the corresponding year-ago reported figures. SVV delivered a trailing four-quarter earnings surprise of 1.6%, 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 SGC’s current fiscal-year sales and earnings implies growth of 3.1% and 39.1%, respectively, from the year-ago reported figures. SGC delivered a trailing four-quarter negative earnings surprise of 90.2%, on average.
Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.
In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.
However, it's pretty easy to find cutting-edge growth stocks with the help of 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.
Ralph Lauren (RL - Free Report) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank.
Research shows that stocks carrying the best growth features consistently beat 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).
While there are numerous reasons why the stock of this upscale clothing company is a great growth pick right now, we have highlighted three of the most important factors below:
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 20.4%, investors should actually focus on the projected growth. The company's EPS is expected to grow 13.2% this year, crushing the industry average, which calls for EPS growth of 7.2%.
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 9.3%.
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 2.5% 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 positions Ralph Lauren well for outperformance, so growth investors may want to bet on it.
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.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.8% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
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 A.
Additionally, the company could be a top pick for growth investors. RL has a Growth Style Score of A, forecasting year-over-year earnings growth of 13.3% for the current fiscal year.
Seven analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.45 to $18.79 per share. RL also boasts an average earnings surprise of +8.7%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, RL should be on investors' short list.
Key Takeaways Ralph Lauren trades at 19.37X forward P/E, above the industry's 14.74X but below its 20.54X median.RL shares rose 3.5% in six months, beating the industry's 8.2% dip but trailing the S&P 500's 12.2% gain.Ralph Lauren plans 8% marketing investment and is expanding women's apparel, outerwear and handbags. Ralph Lauren Corporation (RL - Free Report) , a prominent player in the Textile-Apparel industry, is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 19.36X, which is higher than the industry’s average P/E of 14.91X. The stock trades below its five-year median P/E ratio of 15.04X.
Ralph Lauren’s Valuation Picture
Image Source: Zacks Investment Research
RL’s valuation reflects investor confidence as it trades at a premium compared with peers such as Kontoor Brands, Inc. (KTB - Free Report) , Crocs, Inc. (CROX - Free Report) and Superior Group of Companies, Inc. (SGC - Free Report) , which have P/E ratios of 13.81X, 8.62X and 14.61X, respectively.
Ralph Lauren has seen its shares rise 3.5% in the past six months, outperforming the industry’s decline of 8.2% and the broader sector’s 1.1% decline. However, the stock has underperformed the S&P 500 Index’s 12.2% growth in the same period.
RL Stock’s 6-Month Performance
Image Source: Zacks Investment Research
Closing at $378 in the last trading session, Ralph Lauren stock stands 10.3% below its 52-week high of $421.6 reached on June 6, 2026. RL is trading above its 200-day simple moving average of $363, indicating a favorable technical setup.
Image Source: Zacks Investment Research
RL’s Brand Elevation and Investment Strategy Support Long-Term GrowthRalph Lauren’s continued focus on brand elevation, product innovation and strategic investments is strengthening its position for sustainable long-term growth. The company’s brand elevation journey has continued for nearly a decade, with brand equity strengthening across markets and generations. Maintaining this momentum requires more than marketing, as the company sees significant opportunities to continue investing behind its brand. These investments are aimed at supporting long-term growth and sustaining the strength of the brand over time, while building on the progress achieved through its ongoing brand elevation efforts.
The company continues to build brand desirability through distinctive cinematic storytelling and high-impact activations. Evergreen platforms such as Wimbledon remain an important part of this approach, alongside immersive campaigns designed to engage women, luxury and next-generation consumers. The company continues to see strong returns from this ongoing stream of activations, supporting its confidence in the planned 8% marketing investment for the year. Looking ahead, the company expects to further invest in marketing as margin expansion provides additional capacity for brand-building initiatives.
In addition, the company is leveraging the breadth of its product portfolio across core iconic products, which continue to resonate across generations, including younger consumers. At the same time, it is expanding its focus on high-potential categories such as women’s apparel, outerwear and handbags. Management views these categories as being at an early stage of their opportunity, with current market shares providing room for further progress. The company aims to deliver timeless value that remains relevant beyond changing fashion cycles.
Overall, a healthier luxury market could also provide a meaningful tailwind for the company by supporting stronger traffic and customer consideration while aligning with its elevated positioning. Looking ahead, the company remains confident in the strength of its brand and the multiple growth drivers supporting the business. Continued investment alongside ongoing performance is expected to help sustain momentum and support growth and value creation both this year and beyond.
How Have Estimates Shaped Up for RL?The Zacks Consensus Estimate for RL’s current-quarter earnings has been revised upward by 1.9% to $4.21 per share in the past 30 days. The earnings estimate for the current year has moved up by 2.6% to $18.79 per share in the past 30 days.
Image Source: Zacks Investment Research
How to Play RL Stock?RL’s valuation reflects growing confidence in the company’s ability to translate its brand strength and strategic investments into durable earnings growth. While the premium to industry peers signals higher expectations, the discount to its historical valuation suggests that the stock still offers room for appreciation as execution continues to validate the company’s long-term opportunity. This combination points to a favorable risk-reward profile, with valuation providing scope for further upside as investor confidence strengthens.
At present, RL carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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%.RL, AMP, HALO and NVDA 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. Ralph Lauren (RL - Free Report) , Ameriprise Financial (AMP - Free Report) , Halozyme Therapeutics (HALO - Free Report) and NVIDIA (NVDA - 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 to be 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 11 that made it through the screening process. Each of these stocks carries a Zacks Rank #2.
Ralph Lauren's investment case remains compelling, anchored in strengthening fundamentals. Following first-quarter fiscal 2027 results, the company raised its full-year constant-currency revenue growth outlook to approximately 5-6% and lifted adjusted operating margin expansion guidance to 60-80 basis points. AUR growth of 15%, fueled by full-price selling and disciplined promotions, reinforces the brand's durable pricing power. Asia continues to lead geographically, delivering 25% constant-currency growth, with China surging over 40%. Global DTC comparable store sales rose low-double-digits, spanning both digital and brick-and-mortar channels. With $1.9 billion in liquidity, 22 new owned and partnered stores opened in the fiscal first quarter, and 1.5 million new consumers added to its DTC network, Ralph Lauren's structural growth trajectory appears well-supported heading into the fiscal second quarter.
The Zacks Consensus Estimate for RL’s fiscal 2027 earnings has moved 2.5% north to $18.79 per share in the past 30 days. RL surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 8.74%.
Ameriprise Financial is well-positioned for near-term growth, underpinned by a diversifying revenue base and an accelerating technology investment cycle. The firm's $1 billion annual AI and technology spend targets direct advisor workflow integration, already reflected in a record TTM revenue per advisor of $1.2 million. Record firm-wide assets reaching $1.8 trillion, propelled by 14% growth and strong wrap net inflows, support durable fee revenue expansion. The Asset Management segment is improving, with net outflows narrowing 26%, while Retirement and Protection Solutions posted 20% sales growth. Columbia Threadneedle's strong fund performance further aids client retention. Continuous advisor recruitment — including practices bringing $370 million and $470 million in assets — reinforces organic growth prospects for the second half of 2026.
The consensus estimate for the company’s 2026 earnings has moved 2.7% north to $46.12 per share in the past 30 days. AMP’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 5.56%.
Halozyme Therapeutics presents a compelling near-term opportunity underpinned by accelerating platform momentum. In July 2026, the company entered a collaboration with Incyte covering INCA033989, a first-in-class mutant calreticulin-targeted antibody for myeloproliferative neoplasms, with Incyte retaining options for two additional ENHANZE targets. YTD 2026, five collaborations have been signed — surpassing the full-year goal of three — spanning GSK, Vertex, Oruka, Incyte and an undisclosed partner representing the first-ever ENHANZE license for nucleic acid therapeutics. Raised full-year 2026 guidance calls for royalty revenues of $1.22–$1.245 billion and non-GAAP EPS of $8.65-$9. A $1 billion share repurchase program reflects balance sheet confidence. With argenx's VYVGART Hytrulo receiving an expanded FDA approval and Takeda's TAK-881 posting positive pivotal data, near-term royalty tailwinds appear meaningfully strengthened.
The consensus mark for this company’s 2026 earnings has moved north by 2.9% to $8.19 per share in the past 30 days. HALO surpassed the Zacks Consensus Estimate in three of the trailing four quarters while missing the same once, the average negative surprise being 19.12%.
NVIDIA is well-positioned for near-term appreciation, underpinned by high-conviction strategic moves. In August 2026, the company established compute financing platforms with six major financial institutions — Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR — aimed at mobilizing over $500 billion of third-party capital to fund AI infrastructure globally, broadening demand for NVIDIA hardware and software. NVIDIA also secured dedicated capacity at Ohio's PORTS-Pike Technology Campus, reinforcing its AI factory buildout. On the product front, July 2026 brought a long-term partnership with Safe Superintelligence Inc. and the commercial launch of Alpamayo 2 Super for autonomous vehicles. An expanded deal with SK Group on AI factories and next-generation memory, alongside NAVER's planned 200-megawatt AI factory expansion in Korea, signals durable international demand.
The consensus estimate for this company’s fiscal 2027 earnings has remained steady at $8.90 per share in the past 30 days. NVDA’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 5.52%.
Patrice Louvet, president and CEO of Ralph Lauren Corporation (RL -0.28%), disposed of 19,213 shares of Class A Common Stock on August 15, according to a recent SEC Form 4 filing.
Transaction summaryMetricValueTransaction value$7.4 millionShares sold (directly held)19,213Post-transaction shares (directly held)129,485Post-transaction value$49.11 millionTransaction value based on SEC Form 4 weighted average sale price ($387.22).
Key questionsWas the disposal of 19,213 shares a discretionary market sale by the CEO?
The transaction was non-discretionary and was executed specifically to cover tax liabilities associated with the vesting of restricted stock units on August 15. This type of automated tax withholding is a standard component of executive equity compensation.What was the net impact of the vesting and subsequent withholding on Louvet's stake?
In this filing, 23,241 shares vested and 19,213 shares were withheld for taxes, resulting in a net addition to the executive's direct equity position. The reported 13% disposal refers to the portion of the total pre-transaction holdings, which included the newly vested shares, that was used for tax coverage.How significant is the remaining equity interest for Patrice Louvet?
Following the transaction, the CEO maintains a direct ownership stake of 129,485 shares of Class A Common Stock, which is valued at $49.11 million as of the August 17 market close. This reflects a roughly 0.2% ownership interest in Ralph Lauren.Company OverviewMetricValueShare Price (as of market close 2026-08-17)$379.31Market Capitalization$23.1 billionRevenue (TTM)$8.4 billionNet Income (TTM)$982.9 millionCompany SnapshotRalph Lauren Corporation designs, markets, and distributes premium lifestyle products, including apparel for men, women, and children, along with footwear, accessories, eyewear, timepieces, jewelry, and other complementary product categories across multiple global markets.The company operates a diversified business model centered on the creation and distribution of branded luxury goods, generating revenue through direct-to-consumer channels, wholesale partnerships, and licensing arrangements across North America, Europe, Asia, and other international regions.Ralph Lauren targets affluent consumers and fashion-conscious individuals seeking premium lifestyle products, with a customer base spanning developed markets globally and an emphasis on maintaining brand prestige through selective distribution and curated retail experiences.Ralph Lauren Corporation is a globally recognized luxury apparel and lifestyle brand with a market capitalization of $23.1 billion and TTM revenues of $8.4 billion, positioning it as a significant player in the premium consumer goods sector. The company maintains a diversified product portfolio and multi-channel distribution strategy that leverages both owned retail operations and wholesale partnerships to capture market share across key geographies. Ralph Lauren's competitive advantage derives from its iconic brand heritage, design excellence, and ability to command premium pricing through controlled distribution and consistent brand positioning.
What this transaction means for investorsThese shares were withheld to cover taxes on RSUs that vested the same day, and Louvet actually ended the day with more shares than he started with. Ultimately, that's about as far from a conviction sell as insider activity can get.
The more important story is how the business behind it is doing, and Ralph Lauren's first quarter beat its own targets by a wide margin, with revenue up 14% to $1.96 billion and adjusted operating margin expanding 170 basis points to 18.7%. Management liked what it saw enough to raise full-year revenue guidance to 5% to 6% growth in constant currency, up from 4% to 5% back in May.
Asia is doing the heavy lifting here, up 25% with China alone growing more than 40%. But management is hedging with Europe. As CFO Justin Picicci put it, "we maintain an appropriately prudent view on Europe due to the macroeconomic uncertainty." With the stock already up sharply this past year (roughly 33%), a soft European print when the company reports again in November is one risk worth watching, but the firm clearly has momentum on its side.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Chief Financial Officer Justin M. Picicci disposed of 2,245 shares of Ralph Lauren Corporation (RL -0.28%) valued at $387.23 per share on August 15, according to a recent SEC Form 4 filing.
Transaction summaryMetricValueTransaction value~$869,331Shares sold2,245Post-transaction shares (directly held)11,261Post-transaction value$4.27 millionTransaction value based on SEC Form 4 weighted average sale price ($387.23).
Key questionsWhat prompted the disposal of shares by the CFO?
The disposal of 2,245 shares was a non-discretionary transaction performed to satisfy tax withholding requirements. This activity was triggered by the vesting of restricted stock units on August 15 and does not constitute a discretionary trade based on market conditions or company performance.What is the remaining equity exposure for the insider?
Following this transaction, Picicci retains direct ownership of 11,261 shares of Class A common stock. Based on the market close price of $379.31 on August 17, this position is valued at $4.27 million.Are there future liquidity events expected from equity awards?
The recent filing indicates that the insider holds restricted stock units scheduled to vest in three equal annual installments beginning August 15, 2027. Future vesting events are likely to involve similar sell-to-cover transactions to address associated tax liabilities.Company OverviewMetricValueShare Price (as of market close 2026-08-17)$379.31Market Capitalization$23.1 billionRevenue (TTM)$8.4 billionNet Income (TTM)$982.9 millionCompany SnapshotRalph Lauren Corporation designs, markets, and distributes premium lifestyle products, including apparel for men, women, and children, along with footwear, accessories, eyewear, timepieces, jewelry, and other complementary product categories across multiple global markets.The company operates a diversified business model centered on the creation and distribution of branded luxury goods, generating revenue through direct-to-consumer channels, wholesale partnerships, and licensing arrangements across North America, Europe, Asia, and other international regions.Ralph Lauren targets affluent consumers and fashion-conscious individuals seeking premium lifestyle products, with a customer base spanning developed markets globally and an emphasis on maintaining brand prestige through selective distribution and curated retail experiences.Ralph Lauren Corporation is a globally recognized luxury apparel and lifestyle brand with a market capitalization of $23.1 billion and TTM revenues of $8.4 billion, positioning it as a significant player in the premium consumer goods sector. The company maintains a diversified product portfolio and multi-channel distribution strategy that leverages both owned retail operations and wholesale partnerships to capture market share across key geographies. Ralph Lauren's competitive advantage derives from its iconic brand heritage, design excellence, and ability to command premium pricing through controlled distribution and consistent brand positioning.
What this transaction means for investorsThis filing is similar to a same-day filing from the firm's CEO, just with some smaller numbers. As with that disclosure, this is tax withholding tied to the same August 15 RSU vest that hit CEO Patrice Louvet, as well as executives Halide Alagoz, David Lauren, and Robert Ranftl on the same day. That means this clearly isn't a CFO deciding to lighten up on his own stock, especially since 2,245 shares is a rounding error against the position he's building.
More importantly for long-term investors, Ralph Lauren's first quarter, reported August 6, beat its own targets, with revenue up 14% to $1.96 billion and adjusted operating margin expanding 170 basis points to 18.7%. Management raised full-year guidance to 5% to 6% constant currency growth, up from 4% to 5% in May, on the strength of Asia, where China alone grew more than 40%. Still, Picicci called out the one soft spot himself on the earnings call, saying the company "maintain[s] an appropriately prudent view on Europe due to the macroeconomic uncertainty." Ultimately, how that softness pans out and whether strength in Asia can continue to build will matter more for long-term investors.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Robert P. Ranftl, chief operating officer of Ralph Lauren Corporation (RL -0.28%), disposed of 2,255 shares of Class A Common Stock on August 15, as reported in a recent SEC Form 4 filing.
Transaction summaryMetricValueShares sold2,255Transaction value$873,204Post-transaction shares (directly held)10,162Post-transaction value$3.85 millionTransaction value based on SEC Form 4 weighted average sale price ($387.23).
Key questionsDoes this transaction reflect a change in the executive's perspective on the company?
The disposition was a non-discretionary event for tax withholding purposes and does not reflect the insider's view on the stock. This type of automatic activity is standard following the vesting of equity awards and is not typically associated with proactive portfolio changes.What is the current status of the insider's remaining equity incentives?
While Ranftl's direct holdings decreased to 10,162 shares, the executive was granted 2,904 new restricted stock units on the same transaction date. These units are scheduled to begin vesting in August 2027. The insider also holds derivative securities.What is the scale of the executive's current equity stake relative to the firm?
The post-transaction direct holding of 10,162 shares represents a roughly 0.02% ownership stake in the firm. Ralph Lauren currently maintains a market capitalization of $23.1 billion and reported trailing twelve-month revenue of $8.4 billion as of the August 17 market close.Company OverviewMetricValueShare Price (as of market close 2026-08-17)$379.31Market Capitalization$23.1 billionRevenue (TTM)$8.4 billionNet Income (TTM)$982.9 millionCompany SnapshotRalph Lauren Corporation designs, markets, and distributes premium lifestyle products, including apparel for men, women, and children, along with footwear, accessories, eyewear, timepieces, jewelry, and other complementary product categories across multiple global markets.The company operates a diversified business model centered on the creation and distribution of branded luxury goods, generating revenue through direct-to-consumer channels, wholesale partnerships, and licensing arrangements across North America, Europe, Asia, and other international regions.Ralph Lauren targets affluent consumers and fashion-conscious individuals seeking premium lifestyle products, with a customer base spanning developed markets globally and an emphasis on maintaining brand prestige through selective distribution and curated retail experiences.Ralph Lauren Corporation is a globally recognized luxury apparel and lifestyle brand with a market capitalization of $23.1 billion and TTM revenues of $8.4 billion, positioning it as a significant player in the premium consumer goods sector. The company maintains a diversified product portfolio and multi-channel distribution strategy that leverages both owned retail operations and wholesale partnerships to capture market share across key geographies. Ralph Lauren's competitive advantage derives from its iconic brand heritage, design excellence, and ability to command premium pricing through controlled distribution and consistent brand positioning.
What this transaction means for investorsRanftl's shares effectively went to the IRS, as was the case with other Ralph Lauren executives this week. Nothing about the timing or size of these transactions suggests he decided anything about the stock. The more useful window into how Ranftl's actually doing his job is the operating expense line, since that's well within his territory as COO. Ralph Lauren's adjusted operating margin expanded 170 basis points to 18.7% in the first quarter, and 90 basis points of that came from leverage in non-marketing expenses, even as the company stepped up spending on brand campaigns elsewhere. CEO Patrice Louvet summed up the broader quarter simply, saying, "Our iconic brand is resonating around the world."
Ranftl still holds 10,162 shares directly, a small stake relative to the company but not an unusual one for an operations chief this deep into a multiyear equity grant cycle. More importantly for long-term investors, the business is doing well, and its stock reflects that, surging more than 30% this past year, well outpacing the broader market despite lingering uncertainty around the economy and consumers in particular.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Halide Alagoz, the chief product and merchandising officer of Ralph Lauren Corporation (RL -0.28%), disposed of 2,398 shares of Class A Common Stock on August 15, according to an SEC Form 4 filing.
Transaction summaryMetricValueShares sold2,398Transaction value$928,600Post-transaction shares (directly held)19,036Post-transaction value$7.22 millionTransaction value based on SEC Form 4 weighted average sale price ($387.23).
Key questionsWhat prompted this disposition of shares?
This was a non-discretionary transaction executed to satisfy tax withholding requirements tied to the vesting of restricted stock units.What are the terms of the executive's recent equity grant?
Concurrent with the withholding event, Halide Alagoz was awarded 2,583 restricted stock units that are scheduled to vest in three equal annual installments beginning August 15, 2027.What is the current scale of the insider's remaining investment?
The executive continues to hold 19,036 shares of Class A Common Stock directly, representing a 0.03% ownership stake in the company.Company OverviewMetricValueShare Price (as of market close 2026-08-17)$379.31Market Capitalization$23.1 billionRevenue (TTM)$8.4 billionNet Income (TTM)$982.9 millionCompany SnapshotRalph Lauren Corporation designs, markets, and distributes premium lifestyle products, including apparel for men, women, and children, along with footwear, accessories, eyewear, timepieces, jewelry, and other complementary product categories across multiple global markets.The company operates a diversified business model centered on the creation and distribution of branded luxury goods, generating revenue through direct-to-consumer channels, wholesale partnerships, and licensing arrangements across North America, Europe, Asia, and other international regions.Ralph Lauren targets affluent consumers and fashion-conscious individuals seeking premium lifestyle products, with a customer base spanning developed markets globally and an emphasis on maintaining brand prestige through selective distribution and curated retail experiences.Ralph Lauren Corporation is a globally recognized luxury apparel and lifestyle brand with a market capitalization of $23.1 billion and TTM revenues of $8.4 billion, positioning it as a significant player in the premium consumer goods sector. The company maintains a diversified product portfolio and multi-channel distribution strategy that leverages both owned retail operations and wholesale partnerships to capture market share across key geographies. Ralph Lauren's competitive advantage derives from its iconic brand heritage, design excellence, and ability to command premium pricing through controlled distribution and consistent brand positioning.
What this transaction means for investorsAlagoz is in charge of Ralph Lauren's design and merchandising engine, and how that engine is performing matters much more to long-term investors than this filing, which just shows that a relatively small number of shares were automatically withheld to cover taxes on RSUs that vested (which is very standard).
Meanwhile, Alagoz's actual job is part of the reason the label's margins have been climbing. Adjusted gross margin hit 73.6% in the first quarter, up 130 basis points, driven by higher average unit retail and a mix shift toward full price selling, the kind of number a merchandising chief should get credit for. High-potential categories like women's apparel, outerwear, and handbags grew more than 20% in the quarter and are outpacing the rest of the company. On the call, CEO Patrice Louvet summed up the philosophy behind it, saying, "Our design teams continue to honor the heritage and enduring codes of our brand."
For long-term investors, one key question is whether the average unit retail growth holds up if the pricing environment gets tougher, a question CFO Justin Picicci fielded directly on the same call.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
David R. Lauren, the brand's vice chair and chief innovation officer, reported the disposal of 1,711 shares of Ralph Lauren Corporation (RL -0.28%) on August 15, according to an SEC Form 4 filing.
Transaction summaryMetricValueTransaction value$662,551Shares sold1,711Post-transaction shares (directly held)14,243Post-transaction value$5.4 millionTransaction value based on SEC Form 4 weighted average sale price ($387.23).
Key questionsWhat was the primary driver of this transaction?
The disposition was non-discretionary, executed to cover tax obligations, and does not reflect the insider's view on the stock. It was an automated result of restricted stock units vesting under the company's 2019 Long-Term Stock Incentive Plan.How significant is the insider's remaining stake?
Following the sale of 1,711 shares, Lauren retains direct ownership of 14,243 shares of Class A Common Stock. This equity position represents 0.02% of the company and maintains a market value of $5.4 million as of the August 17 close.Are there upcoming vesting events that may impact ownership?
The same filing disclosed a new award of 1,548 restricted stock units that are scheduled to vest in three equal annual installments beginning August 15, 2027. These future vests will likely result in additional equity acquisition and subsequent non-discretionary tax withholding sales.What is the financial context of the issuing company?
Ralph Lauren Corporation, a New York City-based apparel manufacturer, has a market capitalization of $23.1 billion. The firm reported trailing twelve-month revenue of $8.4 billion and net income of $982.9 million as of the most recent financial data.Company OverviewMetricValueShare Price (as of market close 2026-08-17)$379.31Market Capitalization$23.1 billionRevenue (TTM)$8.4 billionNet Income (TTM)$982.9 millionCompany SnapshotRalph Lauren Corporation designs, markets, and distributes premium lifestyle products including apparel for men, women, and children, along with footwear, accessories, eyewear, timepieces, jewelry, and other complementary product categories across multiple global markets.The company operates a diversified business model centered on the creation and distribution of branded luxury goods, generating revenue through direct-to-consumer channels, wholesale partnerships, and licensing arrangements across North America, Europe, Asia, and other international regions.Ralph Lauren targets affluent consumers and fashion-conscious individuals seeking premium lifestyle products, with a customer base spanning developed markets globally and an emphasis on maintaining brand prestige through selective distribution and curated retail experiences.Ralph Lauren Corporation is a globally recognized luxury apparel and lifestyle brand with a market capitalization of $23.1 billion and TTM revenues of $8.4 billion, positioning it as a significant player in the premium consumer goods sector. The company maintains a diversified product portfolio and multi-channel distribution strategy that leverages both owned retail operations and wholesale partnerships to capture market share across key geographies. Ralph Lauren's competitive advantage derives from its iconic brand heritage, design excellence, and ability to command premium pricing through controlled distribution and consistent brand positioning.
What this transaction means for investorsThis was one of five filings this week tied to what appears to be the same event. The 1,711 shares covered taxes on RSUs that vested August 15, the same day other Ralph Lauren executives, including its CEO, had shares withheld for the same reason, a disclosure that reveals effectively nothing about their view on the stock, which has actually been performing well and is up over 30% this past year.
Lauren's role as vice chair and chief innovation officer points to where the more useful information is. According to the latest earnings release, the company's digital ecosystem sales grew mid-teens in the first quarter, with double-digit growth in every region, and the company expanded its presence across large language models to help people discover the brand online. CEO Patrice Louvet described the broader effort on the earnings call, saying the company continues "to drive progress in enhancing our creativity, productivity and customer engagement." The company outperformed its own expectations, with revenue up 14% to nearly $2 billion, which helps explain why the stock has rallied.
Ultimately, Lauren still holds 14,243 shares directly, and the same filing disclosed a new grant of 1,548 units that won't start vesting until 2027. The tax withholding this week isn't worth much attention on its own. Long-term investors should instead focus on how Ralph Lauren's recent momentum holds up.
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About the Author
Jonathan Ponciano is a contributing stock market analyst at The Motley Fool. He has nearly a decade of experience as a financial journalist, most recently as an editor and senior reporter at Forbes focused on markets, technology, and entrepreneurship. Jonathan has also written for Investopedia and the Los Angeles Business Journal. He holds a dual B.A. in Business Journalism and Economics from the University of North Carolina at Chapel Hill and an M.B.A. from Columbia Business School. A North Carolina native now based in New York City, Jonathan has also lived in Mexico City and Los Angeles.
Ralph Lauren (RL - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.
The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.
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, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating 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 bulk investment action 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 RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. 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 LaurenThis upscale clothing company is expected to earn $18.77 per share for the fiscal year ending March 2027, which represents no year-over-year change.
Analysts have been steadily raising their estimates for Ralph Lauren. Over the past three months, the Zacks Consensus Estimate for the company has increased 3.8%.
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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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.
Momentum investors should take note of this Consumer Discretionary stock. RL has a Momentum Style Score of A, and shares are up 6% over the past four weeks.
Six analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.44 to $18.77 per share. RL also boasts an average earnings surprise of +8.7%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, RL should be on investors' short list.
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Investoři očekávali například výsledky za 4Q fiskálního roku 2026 výrobce síťových zařízení Cisco Systems (-7,1 %). Tržby i očištěný zisk na akcii překonaly odhady analytiků. Společnost zároveň představila výhled na fiskální rok 2027 nad konsensem trhu. Investory však zklamal výhled tržeb spojených s AI datovými centry, který podle analytika UBS vyznívá „velmi, velmi konzervativně“.
Dále reportovala Cerebras Systems (-10,1 %), která navrhuje obrovské čipy a staví specializované systémy pro trénování a provoz rozsáhlých modelů umělé inteligence. Očištěné tržby i celoroční výhled ve 2Q překonaly konsensus analytiků, tahounem byl cloudový byznys, jehož tržby se meziročně téměř zčtyřnásobily. Investorům ale zřejmě nestačil výhled vzhledem k vysokému ocenění.
Anthropic podle lidí obeznámených se situací jedná o převzetí startupu Decart AI za přibližně 6 mld. USD.
Dále se daří akciím výrobci serverů Super Micro Computer (+9,5 %), které rostly již včera (+19 %) poté, co společnost v úterý po trhu zveřejnila kvartální výsledky.
Index S&P 500 +0,81 % na 7811,27 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Komunikační služby +1,5 % Energie -0,7 % Reality +1,3 % Průmysl -0,2 % Informační technologie +1,2 % Základní materiály -0,2 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Super Micro Computer (SMCI) +9,5 % Tapestry (TPR) -16 % Western Digital Corp (WDC) +5,6 % Cisco Systems (CSCO) -7,1 % Robinhood Markets (HOOD) +5,2 % Newmont Corp (NEM) -2,3 % Marvell Technology (MRVL) +4,9 % Ralph Lauren Corp (RL) -2,1 % Hewlett Packard Enterprise (HPE) +4,8 % Baker Hughes (BKR) -2,0 %
Zdroj: Bloomberg
Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task.
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, it's pretty easy to find cutting-edge growth stocks with the help of 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.
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 for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.
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 20.4%, investors should actually focus on the projected growth. The company's EPS is expected to grow 13.1% this year, crushing the industry average, which calls for EPS growth of 6%.
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 9.3%.
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 2.4% over the past month.
Bottom LineRalph Lauren has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination positions Ralph Lauren well for outperformance, so growth investors may want to bet on it.
Investors interested in Consumer Discretionary stocks should always be looking to find the best-performing companies in the group. Has Ralph Lauren (RL - Free Report) been one of those stocks this year? 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 260 individual stocks and currently holds a Zacks Sector Rank of #8. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Ralph Lauren is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for RL's full-year earnings has moved 4% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, RL has moved about 12.5% on a year-to-date basis. In comparison, Consumer Discretionary companies have returned an average of -7.4%. This means that Ralph Lauren is performing better than its sector in terms of year-to-date returns.
Another stock in the Consumer Discretionary sector, Acme United Corporation. (ACU - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 42.3%.
In Acme United Corporation.'s case, the consensus EPS estimate for the current year increased 17.1% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Ralph Lauren is a member of the Textile - Apparel industry, which includes 22 individual companies and currently sits at #178 in the Zacks Industry Rank. This group has lost an average of 0.7% so far this year, so RL is performing better in this area.
On the other hand, Acme United Corporation. belongs to the Consumer Products - Discretionary industry. This 28-stock industry is currently ranked #92. The industry has moved +15.6% year to date.
Investors with an interest in Consumer Discretionary stocks should continue to track Ralph Lauren and Acme United Corporation.. These stocks will be looking to continue their solid performance.
Ralph Lauren posted its fourth quarterly EPS beat in a row, as I reiterated my buy rating amid the brand's resilience and growth strategy. RL's bullish thesis is anchored in strong top-line growth, earnings quality, brand durability, low leverage risk, and robust dividend safety and growth. Recent results highlight global expansion, strong growth in Asia and North America, and operating margins 170 bps above last year, with a profit margin outperforming key peers.
