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Ralph Lauren Continues to Weather Storms and Emerge Victorious

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On Monday, the share price of Ralph Lauren Corporation (RL - Free Report) grew 5.4% to $236.04 in an all-around bright session for the markets. RL breached the $236 mark after languishing in the low $220s for almost three weeks, with the Trump tariff volatility at its highest. While the stock has fallen well below its Feb. 18 peak of $286.74, it has sustained at a level that is 31% higher than a year ago.

The company has been successfully carrying out its brand elevation strategy by focusing on the enhancement of its brand image. Consumers across the globe have reacted extremely positively to RL’s product offerings, leading to accelerated sales growth across markets. The company, thus, has been able to drive above-industry profitable growth.

Ralph Lauren, a Zacks Rank #2 (Buy) company that currently has a VGM score of A, is part of the Zacks Textile – Apparel industry. Over the past year, RL has advanced 29% against a decline of 13.4% in the industry and a fall of 6.6% in its Zacks peer group. Peers like V.F. Corporation (VFC - Free Report) has gained 19.2% and Under Armour, Inc. (UAA - Free Report) declined 6.9% in the same period. VFC currently has a Rank #2, while UAA carries a Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Positive sentiments about its quarterly earnings report have also helped. In the first week of February, RL reported third-quarter fiscal 2025 earnings of $4.82/share, beating the Zacks Consensus Estimate of $4.48. This compares to earnings of $4.17 a year ago. The company also posted revenues of $2.14 billion for the quarter, surpassing the Zacks Consensus Estimate by 6.56%. This compares to year-ago revenues of $1.93 billion. The current consensus earnings per share estimate is $1.99 on $1.6 billion in revenues for the coming quarter and $11.73 on $6.85 billion in revenues for the current fiscal year.

Ralph Lauren’s global expansion efforts have also been paying off, with the company experiencing accelerated sales growth across various regions. It has continued to exceed expectations, with revenues and earnings beating the consensus estimate for 18 straight quarters. Going forward, RL is on track to exceed its top and bottom line targets under the “Next Great Chapter: Accelerate Plan.” This plan includes creating a simplified global organizational structure and rolling out improved technological capabilities. In fact, in a February management call, firm views were expressed on the current tariff environments not having a major impact on the company’s fortunes. The time may just be ripe for an investor to invest in RL if they have not done so already.


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