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RL vs. PVH: Which Apparel Stock is Poised to Lead the Market Next?
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Key Takeaways
RL is executing its growth plan with premium products, strong brand momentum, and global expansion.
PVH is advancing its PVH+ Plan but faces macro pressures, shipment delays, and softer demand in key regions.
RL's 2026 EPS is expected to grow 10.9% year over year, while PVH's 2025 EPS is projected to decline 5.9%.
Ralph Lauren Corporation (RL - Free Report) and PVH Corporation (PVH - Free Report) are leading forces in the Textile-Apparel industry, but both approach the market with distinct strategies and brand identities. Ralph Lauren, long celebrated for its timeless American aesthetic, focuses on premium quality, heritage, and sophisticated lifestyle appeal. In contrast, PVH thrives through globally recognized fashion-forward brands like Calvin Klein and Tommy Hilfiger, catering to a more modern and urban audience.
Despite differences in brand positioning and consumer focus, both companies are industry powerhouses, shaping fashion trends, retail strategies, and sustainability efforts worldwide. As global consumer demand evolves, these companies are actively transforming through digital innovation, supply chain agility and direct-to-consumer expansion. Both companies are strengthening their omnichannel strategies to integrate their physical and digital platforms seamlessly.
As the industry undergoes rapid change driven by shifting consumer preferences, digital disruption, and macroeconomic uncertainties, investors are faced with a compelling question: Which company offers a more attractive long-term value proposition?
The Case for RL Stock
Ralph Lauren is demonstrating strong brand and product momentum by executing its long-term strategy effectively across geographies, channels, and categories. By expanding brand assortments, introducing innovative products, and optimizing distribution channels, the company is well-positioned for sustained growth.
Ralph Lauren's disciplined approach focuses on brand elevation, geographic diversification, and personalized promotions, and supports growth and cost management. The company is investing in city-focused marketing campaigns, premium in-store experiences, and strategic real estate to fuel long-term growth. Its door-by-door brand evaluation ensures continued relevance and premium positioning globally.
Ralph Lauren’s fourth-quarter fiscal 2025 results mark a successful close to the Next Great Chapter: Accelerate plan, emphasizing brand elevation, core growth, and key city expansion. The company is streamlining its global structure and enhancing tech capabilities to drive efficiency and agility. Its strategy centers on offering modern, high-quality lifestyle products, strengthening core categories, and optimizing pricing, product mix, and inventory. This is setting the stage for continued growth in fiscal 2026 through diversified category, geographic and channel expansion.
The company anticipates low-single-digit revenue growth in constant currency, with momentum expected to be stronger in the first half of fiscal 2026. First-half revenues are predicted to be up roughly mid-single-digits. Growth in the company’s Asia and Europe businesses is likely to aid revenues.
For 2026, gross margin is projected to remain flat, as AUR growth, lower cotton costs, and a favorable mix offset headwinds from higher tariffs and non-cotton material costs. While tariffs are likely to hurt gross margins starting in the second half, RL looks to manage cost inflation headwinds, including supply-chain diversification. Ralph Lauren has been assessing additional pricing actions for fall 2025 and spring 2026 to navigate the potential tariff impacts.
The Case for PVH Stock
PVH Corp., the parent company of globally iconic brands Calvin Klein and Tommy Hilfiger, holds a dominant position in the premium and lifestyle apparel industry. Its international reach and strong multi-brand portfolio allow it to adapt swiftly to consumer trends across regions. With a diversified business model spanning direct-to-consumer, wholesale, and licensing, PVH maintains resilience even in dynamic market environments. Calvin Klein and Tommy Hilfiger continue to resonate deeply with consumers worldwide, offering a balanced mix of heritage appeal and modern design sensibility.
The company’s growth is propelled by its multi-year transformation strategy, the PVH+ Plan, which focuses on brand elevation, digital acceleration, and operational efficiency. This strategy has already begun to yield results, particularly through enhanced marketing campaigns, product innovation, and retail execution. Calvin Klein is gaining traction by infusing freshness into its core categories like underwear and denim, while Tommy Hilfiger is driving renewed engagement through lifestyle-led storytelling and high-profile cultural moments. In North America and Europe, PVH is strengthening its marketplace presence through elevated in-store experiences and tighter brand control, while in Asia, it remains focused on long-term brand building despite current headwinds.
PVH is also a leader in digital innovation, leveraging technology to offer AI-powered personalization and seamless omnichannel experiences. Its strong presence across digital commerce platforms and strategic licensing partnerships further amplifies its reach and relevance. By aligning creative excellence with operational discipline, PVH is positioning itself to capture emerging market opportunities, expand its loyal customer base, and deliver lasting shareholder value. The company’s ability to evolve with cultural shifts, while staying rooted in brand authenticity, makes it a compelling investment in the global apparel landscape.
Despite its strong brand portfolio and global presence, PVH faces several headwinds that could hinder its near-term performance. The company is navigating a challenging macroeconomic environment, marked by soft consumer sentiment, particularly in North America and China, which has led to declining store traffic and elevated promotional activity. Additionally, tariff pressures and operational disruptions related to the centralization of Calvin Klein’s global product development have impacted margins and caused shipment delays. While PVH is taking steps to mitigate these issues through cost-saving initiatives and strategic adjustments, these factors continue to pose a risk to short-term profitability and execution consistency.
How Does the Zacks Consensus Estimate Compare for RL & PVH?
The Zacks Consensus Estimate for Ralph Lauren’s fiscal 2026 sales and EPS implies year-over-year growth of 3.5% and 10.9%, respectively. The EPS estimates have moved up by 0.6% in the past 30 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for PVH's fiscal 2025 sales suggests year-over-year growth of 1.4%, whereas that for EPS indicates a decline of 5.9%. The EPS estimate has moved down by 2.2% in the past seven days.
Image Source: Zacks Investment Research
Stock Price Performance & Valuation of RL & PVH
RL is trading at a forward price-to-earnings multiple of 18.65X, the Zacks Textile – Apparel industry average of 11.22X. In contrast, PVH trades at a multiple of 5.55, below the industry average.
Image Source: Zacks Investment Research
PVH stock looks cheap from a valuation perspective. Its expanding owned-brand portfolio and reduced reliance on licensed labels, sustainability, digital transformation and omnichannel strategy support long-term growth ambitions. However, the stock’s discounted valuation may reflect limited near-term visibility amid ongoing macroeconomic headwinds and consumer uncertainty.
Ralph Lauren does seem pricey. However, its valuations reflect its focus on investments in digital transformation, omnichannel expansion and product diversification, positioning it for long-term growth. If the company sustains its execution, the premium could be warranted.
In the past three months, Ralph Lauren’s stock has gained 18.2%, outperforming PVH and the broader industry’s decline of 4.1% and 13.6%, respectively. This outperformance, combined with a significantly higher valuation and strategic execution of its Next Great Chapter: Accelerate plan, positions RL as a more attractive investment proposition.
Image Source: Zacks Investment Research
Conclusion
RL and PVH are both pursuing transformative strategies to navigate a rapidly evolving global apparel landscape. However, RL stands out as the stronger contender in 2025, primarily due to its consistent strategic execution, strong brand equity, and promising financial outlook. The company is expanding at a faster pace, driven by premium product offerings, and expanding its direct-to-consumer and digital capabilities. Adding to its appeal, Ralph Lauren’s share price momentum and estimate revisions suggest investor optimism about the ongoing initiatives and brand traction across global markets.
For investors seeking stability, consistent brand-driven growth in the near term, along with long-term value creation, RL is a promising bet. RL currently carries a Zacks Rank #3 (Hold), whereas PVH has a Zacks Rank #4 (Sell).
Image: Bigstock
RL vs. PVH: Which Apparel Stock is Poised to Lead the Market Next?
Key Takeaways
Ralph Lauren Corporation (RL - Free Report) and PVH Corporation (PVH - Free Report) are leading forces in the Textile-Apparel industry, but both approach the market with distinct strategies and brand identities. Ralph Lauren, long celebrated for its timeless American aesthetic, focuses on premium quality, heritage, and sophisticated lifestyle appeal. In contrast, PVH thrives through globally recognized fashion-forward brands like Calvin Klein and Tommy Hilfiger, catering to a more modern and urban audience.
Despite differences in brand positioning and consumer focus, both companies are industry powerhouses, shaping fashion trends, retail strategies, and sustainability efforts worldwide. As global consumer demand evolves, these companies are actively transforming through digital innovation, supply chain agility and direct-to-consumer expansion. Both companies are strengthening their omnichannel strategies to integrate their physical and digital platforms seamlessly.
As the industry undergoes rapid change driven by shifting consumer preferences, digital disruption, and macroeconomic uncertainties, investors are faced with a compelling question: Which company offers a more attractive long-term value proposition?
The Case for RL Stock
Ralph Lauren is demonstrating strong brand and product momentum by executing its long-term strategy effectively across geographies, channels, and categories. By expanding brand assortments, introducing innovative products, and optimizing distribution channels, the company is well-positioned for sustained growth.
Ralph Lauren's disciplined approach focuses on brand elevation, geographic diversification, and personalized promotions, and supports growth and cost management. The company is investing in city-focused marketing campaigns, premium in-store experiences, and strategic real estate to fuel long-term growth. Its door-by-door brand evaluation ensures continued relevance and premium positioning globally.
Ralph Lauren’s fourth-quarter fiscal 2025 results mark a successful close to the Next Great Chapter: Accelerate plan, emphasizing brand elevation, core growth, and key city expansion. The company is streamlining its global structure and enhancing tech capabilities to drive efficiency and agility. Its strategy centers on offering modern, high-quality lifestyle products, strengthening core categories, and optimizing pricing, product mix, and inventory. This is setting the stage for continued growth in fiscal 2026 through diversified category, geographic and channel expansion.
The company anticipates low-single-digit revenue growth in constant currency, with momentum expected to be stronger in the first half of fiscal 2026. First-half revenues are predicted to be up roughly mid-single-digits. Growth in the company’s Asia and Europe businesses is likely to aid revenues.
For 2026, gross margin is projected to remain flat, as AUR growth, lower cotton costs, and a favorable mix offset headwinds from higher tariffs and non-cotton material costs. While tariffs are likely to hurt gross margins starting in the second half, RL looks to manage cost inflation headwinds, including supply-chain diversification. Ralph Lauren has been assessing additional pricing actions for fall 2025 and spring 2026 to navigate the potential tariff impacts.
The Case for PVH Stock
PVH Corp., the parent company of globally iconic brands Calvin Klein and Tommy Hilfiger, holds a dominant position in the premium and lifestyle apparel industry. Its international reach and strong multi-brand portfolio allow it to adapt swiftly to consumer trends across regions. With a diversified business model spanning direct-to-consumer, wholesale, and licensing, PVH maintains resilience even in dynamic market environments. Calvin Klein and Tommy Hilfiger continue to resonate deeply with consumers worldwide, offering a balanced mix of heritage appeal and modern design sensibility.
The company’s growth is propelled by its multi-year transformation strategy, the PVH+ Plan, which focuses on brand elevation, digital acceleration, and operational efficiency. This strategy has already begun to yield results, particularly through enhanced marketing campaigns, product innovation, and retail execution. Calvin Klein is gaining traction by infusing freshness into its core categories like underwear and denim, while Tommy Hilfiger is driving renewed engagement through lifestyle-led storytelling and high-profile cultural moments. In North America and Europe, PVH is strengthening its marketplace presence through elevated in-store experiences and tighter brand control, while in Asia, it remains focused on long-term brand building despite current headwinds.
PVH is also a leader in digital innovation, leveraging technology to offer AI-powered personalization and seamless omnichannel experiences. Its strong presence across digital commerce platforms and strategic licensing partnerships further amplifies its reach and relevance. By aligning creative excellence with operational discipline, PVH is positioning itself to capture emerging market opportunities, expand its loyal customer base, and deliver lasting shareholder value. The company’s ability to evolve with cultural shifts, while staying rooted in brand authenticity, makes it a compelling investment in the global apparel landscape.
Despite its strong brand portfolio and global presence, PVH faces several headwinds that could hinder its near-term performance. The company is navigating a challenging macroeconomic environment, marked by soft consumer sentiment, particularly in North America and China, which has led to declining store traffic and elevated promotional activity. Additionally, tariff pressures and operational disruptions related to the centralization of Calvin Klein’s global product development have impacted margins and caused shipment delays. While PVH is taking steps to mitigate these issues through cost-saving initiatives and strategic adjustments, these factors continue to pose a risk to short-term profitability and execution consistency.
How Does the Zacks Consensus Estimate Compare for RL & PVH?
The Zacks Consensus Estimate for Ralph Lauren’s fiscal 2026 sales and EPS implies year-over-year growth of 3.5% and 10.9%, respectively. The EPS estimates have moved up by 0.6% in the past 30 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for PVH's fiscal 2025 sales suggests year-over-year growth of 1.4%, whereas that for EPS indicates a decline of 5.9%. The EPS estimate has moved down by 2.2% in the past seven days.
Image Source: Zacks Investment Research
Stock Price Performance & Valuation of RL & PVH
RL is trading at a forward price-to-earnings multiple of 18.65X, the Zacks Textile – Apparel industry average of 11.22X. In contrast, PVH trades at a multiple of 5.55, below the industry average.
Image Source: Zacks Investment Research
PVH stock looks cheap from a valuation perspective. Its expanding owned-brand portfolio and reduced reliance on licensed labels, sustainability, digital transformation and omnichannel strategy support long-term growth ambitions. However, the stock’s discounted valuation may reflect limited near-term visibility amid ongoing macroeconomic headwinds and consumer uncertainty.
Ralph Lauren does seem pricey. However, its valuations reflect its focus on investments in digital transformation, omnichannel expansion and product diversification, positioning it for long-term growth. If the company sustains its execution, the premium could be warranted.
In the past three months, Ralph Lauren’s stock has gained 18.2%, outperforming PVH and the broader industry’s decline of 4.1% and 13.6%, respectively. This outperformance, combined with a significantly higher valuation and strategic execution of its Next Great Chapter: Accelerate plan, positions RL as a more attractive investment proposition.
Image Source: Zacks Investment Research
Conclusion
RL and PVH are both pursuing transformative strategies to navigate a rapidly evolving global apparel landscape. However, RL stands out as the stronger contender in 2025, primarily due to its consistent strategic execution, strong brand equity, and promising financial outlook. The company is expanding at a faster pace, driven by premium product offerings, and expanding its direct-to-consumer and digital capabilities. Adding to its appeal, Ralph Lauren’s share price momentum and estimate revisions suggest investor optimism about the ongoing initiatives and brand traction across global markets.
For investors seeking stability, consistent brand-driven growth in the near term, along with long-term value creation, RL is a promising bet. RL currently carries a Zacks Rank #3 (Hold), whereas PVH has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.