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Here's Why Ralph Lauren (RL) Stock Gained 56% in a Year
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Ralph Lauren Corporation (RL - Free Report) appears well poised for growth, thanks to its digital endeavors and other robust strategies. Undoubtedly, management is focused on enhancing digital capabilities, deepening relations with customers via marketing, expanding international markets and efficiently controlling expenses.
Analysts seem quite optimistic about the company. The Zacks Consensus Estimate for fiscal 2024 sales and earnings per share (EPS) is currently pegged at $6.6 billion and $10.23, respectively, implying growth of 2.7% and 22.7% from the year-ago levels. The consensus estimate for fiscal 2025 sales and EPS is presently pegged at $6.9 billion and $11.20, respectively, indicating an increase of 4.2% and 9.5%.
Buoyed by such strengths, shares of this apparel and accessories designer have jumped 56% compared with the industry’s 2.2% growth in a year’s span. A VGM Score of A further adds strength to this Zacks Rank #1 (Strong Buy) company.
Let’s Delve Deeper
Ralph Lauren’s “Next Great Chapter” plan appears encouraging. As part of the plan, it completed the transition of Chaps to a licensed business, thus concluding its portfolio realignment announced last year. The move will likely enable it to focus on core brands, as part of the “Next Great Chapter” elevation strategy.
In addition, the company’s strategy of product elevation, personalized and targeted promotion, disciplined inventory management, and favorable channel and geographic mix bodes well.
Image Source: Zacks Investment Research
It is making significant progress in expanding its digital and omnichannel capabilities through investments in mobile, omnichannel and fulfillment. The company remains focused on further digital investments to continue the creation of content for all platforms, expanding digital capabilities to improve the user experience, and continuing to leverage AI and data to serve consumers more efficiently.
RL added 1.7 million new consumers to its DTC businesses in the fiscal third quarter, up high-single-digits year over year. Its’ followers on social media grew low-double-digits , driven by TikTok, Instagram, WeChat and Douyin. Region-wise, digital sales were up 4% in North America, 12% in Europe and 25% in Asia.
Ralph Lauren continues to scale and expand its connected retail capabilities, including virtual selling appointments, “buy online, pick up in store”, endless aisle product availability and more. It launched its first-ever full catalog Ralph Lauren mobile app last holiday season, efficiently leveraging its connected retail capabilities to deliver most personalized and content-rich platform.
Given the aforesaid positives, Ralph Lauren stock seems to be a decent investment pick now.
The Zacks Consensus Estimate for GIII Apparel’s current financial-year EPS implies growth of 39.3% from the year-ago figure.
lululemon athletica is a yoga-inspired athletic apparel company. LULU carries a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for lululemon athletica’s current financial-year sales and EPS indicates growth of 18.4% and 23.7%, respectively, from the year-ago figures. LULU has a trailing four-quarter earnings surprise of 9.2%, on average.
Royal Caribbean caries a Zacks Rank of 2 at present. RCL has a trailing four-quarter earnings surprise of 28.3%, on average.
The Zacks Consensus Estimate for RCL’s 2024 sales and EPS indicates an increase of 13.7% and 38.1%, respectively, from the year-ago reported levels.
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Here's Why Ralph Lauren (RL) Stock Gained 56% in a Year
Ralph Lauren Corporation (RL - Free Report) appears well poised for growth, thanks to its digital endeavors and other robust strategies. Undoubtedly, management is focused on enhancing digital capabilities, deepening relations with customers via marketing, expanding international markets and efficiently controlling expenses.
Analysts seem quite optimistic about the company. The Zacks Consensus Estimate for fiscal 2024 sales and earnings per share (EPS) is currently pegged at $6.6 billion and $10.23, respectively, implying growth of 2.7% and 22.7% from the year-ago levels. The consensus estimate for fiscal 2025 sales and EPS is presently pegged at $6.9 billion and $11.20, respectively, indicating an increase of 4.2% and 9.5%.
Buoyed by such strengths, shares of this apparel and accessories designer have jumped 56% compared with the industry’s 2.2% growth in a year’s span. A VGM Score of A further adds strength to this Zacks Rank #1 (Strong Buy) company.
Let’s Delve Deeper
Ralph Lauren’s “Next Great Chapter” plan appears encouraging. As part of the plan, it completed the transition of Chaps to a licensed business, thus concluding its portfolio realignment announced last year. The move will likely enable it to focus on core brands, as part of the “Next Great Chapter” elevation strategy.
In addition, the company’s strategy of product elevation, personalized and targeted promotion, disciplined inventory management, and favorable channel and geographic mix bodes well.
Image Source: Zacks Investment Research
It is making significant progress in expanding its digital and omnichannel capabilities through investments in mobile, omnichannel and fulfillment. The company remains focused on further digital investments to continue the creation of content for all platforms, expanding digital capabilities to improve the user experience, and continuing to leverage AI and data to serve consumers more efficiently.
RL added 1.7 million new consumers to its DTC businesses in the fiscal third quarter, up high-single-digits year over year. Its’ followers on social media grew low-double-digits , driven by TikTok, Instagram, WeChat and Douyin. Region-wise, digital sales were up 4% in North America, 12% in Europe and 25% in Asia.
Ralph Lauren continues to scale and expand its connected retail capabilities, including virtual selling appointments, “buy online, pick up in store”, endless aisle product availability and more. It launched its first-ever full catalog Ralph Lauren mobile app last holiday season, efficiently leveraging its connected retail capabilities to deliver most personalized and content-rich platform.
Given the aforesaid positives, Ralph Lauren stock seems to be a decent investment pick now.
Other Key Picks
Some other top-ranked companies are GIII Apparel (GIII - Free Report) , lululemon athletica (LULU - Free Report) and Royal Caribbean (RCL - Free Report) .
GIII Apparel, an accessories dealer, sports a Zacks Rank #1 at present. GIII has a trailing four-quarter earnings surprise of 541.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GIII Apparel’s current financial-year EPS implies growth of 39.3% from the year-ago figure.
lululemon athletica is a yoga-inspired athletic apparel company. LULU carries a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for lululemon athletica’s current financial-year sales and EPS indicates growth of 18.4% and 23.7%, respectively, from the year-ago figures. LULU has a trailing four-quarter earnings surprise of 9.2%, on average.
Royal Caribbean caries a Zacks Rank of 2 at present. RCL has a trailing four-quarter earnings surprise of 28.3%, on average.
The Zacks Consensus Estimate for RCL’s 2024 sales and EPS indicates an increase of 13.7% and 38.1%, respectively, from the year-ago reported levels.