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Will Ralph Lauren's Digital Momentum & Global Expansion Power Growth?

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Key Takeaways

  • {\"0\":\"Ralph Lauren\'s Next Great Chapter plan boosts growth through brand strength and innovation.\",\"1\":\"Global direct-to-consumer comparable store sales rose 13% in Q1 fiscal 2026.\",\"2\":\"Digital investments in personalization and loyalty drive deeper consumer engagement.\"}

Ralph Lauren Corporation (RL - Free Report) is benefiting from its unique brand portfolio, product innovations and strategic execution of its Next Great Chapter plan. The company is leveraging advanced data analytics to tailor product recommendations, optimize pricing and refine marketing strategies across regions.

Ralph Lauren is advancing its digital transformation through personalization, data-driven insights and seamless omnichannel experiences. The company is also optimizing distribution, strengthening wholesale partnerships and enhancing its retail network to reinforce its premium positioning. In first-quarter fiscal 2026, global direct-to-consumer comparable store sales increased 13%, backed by positive retail comps in all regions and channels.

The company has been experiencing significant growth in its digital channels across key regions. Continuous investments in personalization, mobile capabilities and loyalty integration have strengthened digital sales, enabling it to make deeper engagements with younger and more diverse consumer segments.

Ralph Lauren’s “Next Great Chapter: Accelerate Plan” serves as the foundation of its growth strategy, emphasizing brand elevation, consumer centricity and operational agility. This strategy is designed to create a more balanced global footprint by expanding into high-growth markets, such as Asia, while strengthening its presence in core regions.

Ralph Lauren’s retail and wholesale operations remain core pillars of its premium lifestyle business, contributing to a balanced and diversified revenue mix. Management is confident that the Next Great Chapter plan will drive sustainable growth, expand market share and strengthen Ralph Lauren’s leadership in the luxury lifestyle space, while maximizing long-term shareholder value.

RL’s Price Performance, Valuation and Estimates

Ralph Lauren’s shares have surged 35% year to date against the industry’s 29.4% decline.

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From a valuation standpoint, RL trades at a forward price-to-earnings ratio of 20.54X compared with the industry’s average of 11.24X.

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Image Source: Zacks Investment Research

The Zacks Consensus Estimate for RL’s fiscal 2026 and fiscal 2027 earnings per share (EPS) indicates year-over-year growth of 19.8% and 8.9%, respectively. The company’s EPS estimate for fiscal 2026 and fiscal 2027 has been stable in the past 30 days.

Zacks Investment Research
Image Source: Zacks Investment Research

Ralph Lauren currently sports a Zacks Rank #1 (Strong Buy).

Other Stocks to Consider in the Consumer Discretionary Space

Boyd Gaming (BYD - Free Report) , which is a gaming company, currently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here

BYD delivered a trailing four-quarter earnings surprise of 9.1%, on average. The Zacks Consensus Estimate for BYD’s current financial-year EPS indicates growth of 5.2% from the year-ago number. 

Guess?, Inc. (GES - Free Report) , which is a designer and marketer of casual apparel and accessories, currently carries a Zacks Rank #2 (Buy). 

GES delivered a trailing four-quarter earnings surprise of 26.7%, on average. The Zacks Consensus Estimate for GES’ current financial-year sales indicates growth of 7% from the year-ago number. 

Hanesbrands Inc. (HBI - Free Report) , which is a designer and manufacturer of apparel essentials for men, women and children in the US and internationally, currently carries a Zacks Rank of 2.

The Zacks Consensus Estimate for HBI’s current financial-year EPS is expected to rise 65% from the corresponding year-ago reported figure. HBI delivered a trailing four-quarter earnings surprise of 56.1%, on average.

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