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lululemon vs. Ralph Lauren: Which Premium Apparel Brand Holds the Edge?
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Key Takeaways
Ralph Lauren's 11.1% three-month return pairs with fiscal 2026 growth in both sales and earnings.
RL's upward estimate revisions reflect strong fundamentals and confidence in global expansion.
LULU sees sales growth but faces an earnings decline and slight downward estimate revisions.
In the competitive world of premium apparel, lululemon athletica inc. (LULU - Free Report) and Ralph Lauren Corporation (RL - Free Report) occupy distinct yet intersecting lanes, each commanding loyal followings and powerful brand equity.
lululemon, the athleisure innovator, has built its dominance on performance-driven products and a fast-growing direct-to-consumer model, steadily expanding its global market share in activewear. Ralph Lauren, a heritage powerhouse in lifestyle luxury, blends timeless design with aspirational branding to retain its stronghold in premium fashion.
As shifting consumer preferences, digital acceleration and global expansion reshape the industry, both brands are leveraging their unique strengths to defend market position and capture growth, setting the stage for a compelling face-off in the evolving retail landscape.
The Case for lululemon
LULU continues to strengthen its leadership in the premium activewear segment, holding a commanding share within the consumer discretionary industry’s apparel and athleisure category. The brand’s market position is underpinned by robust international growth, particularly in China and other Rest-of-World markets, while maintaining market share gains in North America despite softer consumer sentiment. Its portfolio spans performance wear and lifestyle apparel, appealing to a wide target demographic, from high-performance athletes to everyday consumers seeking elevated comfort.
Strategically, lululemon focuses on product innovation, category expansion, and digital excellence. Popular launches like the No Line Align and Daydrift trousers are complemented by investments in e-commerce, personalization, and storytelling, which deepen engagement and drive direct-to-consumer penetration. The company’s global footprint and digital leadership help counter retail headwinds, while brand positioning as a premium, community-driven label fosters strong pricing power and loyalty. Tariff-related cost pressures have been met with selective price increases, sourcing diversification, and efficiency measures to protect margins without eroding brand equity.
In first-quarter fiscal 2025, LULU delivered revenue growth at the high end of guidance and healthy profitability, supported by disciplined inventory management and reduced markdowns. With a strategy that blends innovation, international expansion, and digital acceleration, lululemon is well-positioned to capture long-term growth in the evolving consumer discretionary space, while maintaining resilience against macroeconomic and competitive pressures.
The Case for Ralph Lauren
RL remains a prominent player in the global premium lifestyle and apparel segment, holding a meaningful share of the consumer discretionary industry through its diverse portfolio spanning apparel, accessories, and home. Its strong market position is anchored in timeless brand equity, a loyal multi-generational customer base, and a balanced channel mix across retail, wholesale and digital. Targeting aspirational and luxury-oriented consumers, RL maintains a competitive edge through elevated designs, premium pricing power and broad geographic reach.
Ralph Lauren is investing in brand elevation, digital acceleration and international expansion. Digital channels are a growing share of sales, fueled by personalization, enhanced mobile capabilities and loyalty integration to capture younger, globally diverse audiences. RL’s ongoing product and merchandising initiatives ensure relevance while maintaining premium appeal. In response to tariff pressures, the company is optimizing sourcing and leveraging its pricing strategy to protect margins.
In first-quarter fiscal 2026, the company’s results reflected positive direct-to-consumer comparable sales across all regions, offsetting wholesale softness in some markets. Strong growth in Asia and Europe, coupled with disciplined inventory management, supported profitability. With a strategy that combines heritage-driven brand strength and modern digital innovation, Ralph Lauren is well-positioned to navigate macro challenges while driving long-term shareholder value.
How Does Zacks Consensus Estimate Compare for RL & LULU?
The Zacks Consensus Estimate for Ralph Lauren’s fiscal 2026 sales and EPS implies year-over-year growth of 4.6% and 18.2%, respectively. The EPS estimate has moved up 4.8% in the past seven days.
RL’s Estimate Revision Trend
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for lululemon’s fiscal 2025 sales suggests year-over-year growth of 5.6%, while that for EPS indicates a decline of 1.5%. The EPS estimate has edged down 0.5% in the past 30 days.
LULU’s Estimate Revision Trend
Image Source: Zacks Investment Research
The latest estimates for Ralph Lauren and lululemon suggest that while both companies are poised for growth, Ralph Lauren may hold a near-term edge. RL’s projected fiscal 2026 performance reflects balanced top-line expansion and robust earnings momentum, with upward estimate revisions signaling growing analyst confidence. In contrast, LULU’s anticipated sales growth is offset by an expected dip in earnings and slight downward revisions, pointing to potential margin pressures. This positions Ralph Lauren as the stronger pick in the current market landscape.
Price Performance & Valuation of LULU & RL
In the past three months, the Ralph Lauren stock had the edge in terms of performance, recording a total return of 11.1%. This has noticeably outpaced lululemon’s decline of 38.9% and the benchmark S&P 500’s return of 8.8%.
LULU vs. RL: 3-Month Price Performance
Image Source: Zacks Investment Research
From a valuation perspective, lululemon trades at a forward price-to-earnings (P/E) multiple of 12.87X, which is below its 3-year median of 27.04X. Moreover, the lululemon stock trades below Ralph Lauren’s forward 12-month P/E multiple of 20.25X and a 5-year median of 14.24X.
lululemon’s stock looks cheap from a valuation perspective. Moreover, investments in product innovation, guest experience and market expansion, as part of the Power of Three X2 growth plan, highlight its growth prospects.
Image Source: Zacks Investment Research
Ralph Lauren does seem pricey. However, its valuations reflect investor confidence in its enduring brand equity, disciplined execution and ability to deliver profitable growth across market cycles. It underscores expectations for sustained demand in the luxury lifestyle segment, successful digital and international expansion and resilience against macro headwinds. If the company sustains its execution, the premium can be warranted.
The Verdict
Ralph Lauren emerges as the stronger contender, backed by a solid three-month return, healthy growth prospects and a consistent record of executing strategic initiatives. The brand’s blend of heritage appeal and modern digital innovation is resonating globally, while its broad-based sales growth and disciplined inventory management signal operational strength. Notably, positive estimate revisions point to rising analyst confidence in the company’s earnings trajectory.
While lululemon continues to impress with product innovation, a loyal customer base and a growing international footprint, recent downward estimate revisions and projected earnings softness highlight potential near-term pressures. Ralph Lauren’s upward momentum in earnings expectations, coupled with its strong market position and execution consistency, tilts the balance in its favor. Despite trading at a premium, the valuation reflects investor optimism and confidence in its ability to sustain profitable growth, giving RL the edge in this matchup.
Ralph Lauren sports a Zacks Rank #1 (Strong Buy), while lululemon currently carries a Zacks Rank #4 (Sell).
Image: Bigstock
lululemon vs. Ralph Lauren: Which Premium Apparel Brand Holds the Edge?
Key Takeaways
In the competitive world of premium apparel, lululemon athletica inc. (LULU - Free Report) and Ralph Lauren Corporation (RL - Free Report) occupy distinct yet intersecting lanes, each commanding loyal followings and powerful brand equity.
lululemon, the athleisure innovator, has built its dominance on performance-driven products and a fast-growing direct-to-consumer model, steadily expanding its global market share in activewear. Ralph Lauren, a heritage powerhouse in lifestyle luxury, blends timeless design with aspirational branding to retain its stronghold in premium fashion.
As shifting consumer preferences, digital acceleration and global expansion reshape the industry, both brands are leveraging their unique strengths to defend market position and capture growth, setting the stage for a compelling face-off in the evolving retail landscape.
The Case for lululemon
LULU continues to strengthen its leadership in the premium activewear segment, holding a commanding share within the consumer discretionary industry’s apparel and athleisure category. The brand’s market position is underpinned by robust international growth, particularly in China and other Rest-of-World markets, while maintaining market share gains in North America despite softer consumer sentiment. Its portfolio spans performance wear and lifestyle apparel, appealing to a wide target demographic, from high-performance athletes to everyday consumers seeking elevated comfort.
Strategically, lululemon focuses on product innovation, category expansion, and digital excellence. Popular launches like the No Line Align and Daydrift trousers are complemented by investments in e-commerce, personalization, and storytelling, which deepen engagement and drive direct-to-consumer penetration. The company’s global footprint and digital leadership help counter retail headwinds, while brand positioning as a premium, community-driven label fosters strong pricing power and loyalty. Tariff-related cost pressures have been met with selective price increases, sourcing diversification, and efficiency measures to protect margins without eroding brand equity.
In first-quarter fiscal 2025, LULU delivered revenue growth at the high end of guidance and healthy profitability, supported by disciplined inventory management and reduced markdowns. With a strategy that blends innovation, international expansion, and digital acceleration, lululemon is well-positioned to capture long-term growth in the evolving consumer discretionary space, while maintaining resilience against macroeconomic and competitive pressures.
The Case for Ralph Lauren
RL remains a prominent player in the global premium lifestyle and apparel segment, holding a meaningful share of the consumer discretionary industry through its diverse portfolio spanning apparel, accessories, and home. Its strong market position is anchored in timeless brand equity, a loyal multi-generational customer base, and a balanced channel mix across retail, wholesale and digital. Targeting aspirational and luxury-oriented consumers, RL maintains a competitive edge through elevated designs, premium pricing power and broad geographic reach.
Ralph Lauren is investing in brand elevation, digital acceleration and international expansion. Digital channels are a growing share of sales, fueled by personalization, enhanced mobile capabilities and loyalty integration to capture younger, globally diverse audiences. RL’s ongoing product and merchandising initiatives ensure relevance while maintaining premium appeal. In response to tariff pressures, the company is optimizing sourcing and leveraging its pricing strategy to protect margins.
In first-quarter fiscal 2026, the company’s results reflected positive direct-to-consumer comparable sales across all regions, offsetting wholesale softness in some markets. Strong growth in Asia and Europe, coupled with disciplined inventory management, supported profitability. With a strategy that combines heritage-driven brand strength and modern digital innovation, Ralph Lauren is well-positioned to navigate macro challenges while driving long-term shareholder value.
How Does Zacks Consensus Estimate Compare for RL & LULU?
The Zacks Consensus Estimate for Ralph Lauren’s fiscal 2026 sales and EPS implies year-over-year growth of 4.6% and 18.2%, respectively. The EPS estimate has moved up 4.8% in the past seven days.
RL’s Estimate Revision Trend
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for lululemon’s fiscal 2025 sales suggests year-over-year growth of 5.6%, while that for EPS indicates a decline of 1.5%. The EPS estimate has edged down 0.5% in the past 30 days.
LULU’s Estimate Revision Trend
Image Source: Zacks Investment Research
The latest estimates for Ralph Lauren and lululemon suggest that while both companies are poised for growth, Ralph Lauren may hold a near-term edge. RL’s projected fiscal 2026 performance reflects balanced top-line expansion and robust earnings momentum, with upward estimate revisions signaling growing analyst confidence. In contrast, LULU’s anticipated sales growth is offset by an expected dip in earnings and slight downward revisions, pointing to potential margin pressures. This positions Ralph Lauren as the stronger pick in the current market landscape.
Price Performance & Valuation of LULU & RL
In the past three months, the Ralph Lauren stock had the edge in terms of performance, recording a total return of 11.1%. This has noticeably outpaced lululemon’s decline of 38.9% and the benchmark S&P 500’s return of 8.8%.
LULU vs. RL: 3-Month Price Performance
Image Source: Zacks Investment Research
From a valuation perspective, lululemon trades at a forward price-to-earnings (P/E) multiple of 12.87X, which is below its 3-year median of 27.04X. Moreover, the lululemon stock trades below Ralph Lauren’s forward 12-month P/E multiple of 20.25X and a 5-year median of 14.24X.
lululemon’s stock looks cheap from a valuation perspective. Moreover, investments in product innovation, guest experience and market expansion, as part of the Power of Three X2 growth plan, highlight its growth prospects.
Image Source: Zacks Investment Research
Ralph Lauren does seem pricey. However, its valuations reflect investor confidence in its enduring brand equity, disciplined execution and ability to deliver profitable growth across market cycles. It underscores expectations for sustained demand in the luxury lifestyle segment, successful digital and international expansion and resilience against macro headwinds. If the company sustains its execution, the premium can be warranted.
The Verdict
Ralph Lauren emerges as the stronger contender, backed by a solid three-month return, healthy growth prospects and a consistent record of executing strategic initiatives. The brand’s blend of heritage appeal and modern digital innovation is resonating globally, while its broad-based sales growth and disciplined inventory management signal operational strength. Notably, positive estimate revisions point to rising analyst confidence in the company’s earnings trajectory.
While lululemon continues to impress with product innovation, a loyal customer base and a growing international footprint, recent downward estimate revisions and projected earnings softness highlight potential near-term pressures. Ralph Lauren’s upward momentum in earnings expectations, coupled with its strong market position and execution consistency, tilts the balance in its favor. Despite trading at a premium, the valuation reflects investor optimism and confidence in its ability to sustain profitable growth, giving RL the edge in this matchup.
Ralph Lauren sports a Zacks Rank #1 (Strong Buy), while lululemon currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.