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VNCE vs. RL: Which Luxury Apparel Stock Is the Better Buy?
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Key Takeaways
VNCE's Q2 DTC sales rose 5.5%, with profitability driven by cost control and pricing discipline.
RL's Q1 revenues climbed 14%, led by double-digit gains across regions and channels.
VNCE reduced long-term debt to $31.1M, while RL boosted shareholder returns and outlook.
Vince Holding Corp. ((VNCE - Free Report) ) and Ralph Lauren Corporation ((RL - Free Report) ) are two standout names in the Textile-Apparel industry, an ever-evolving sector influenced by changing consumer preferences, global supply-chain challenges and a growing emphasis on brand authenticity. Success in this space depends on a company’s ability to blend tradition with innovation, balancing craftsmanship and quality with digital transformation and sustainability. As tariffs rise, retail dynamics shift and competition intensifies, apparel brands must stay agile and strengthen their brand identity to thrive in this demanding marketplace.
In this face-off, Vince Holding and Ralph Lauren reflect different strategies in a changing apparel market. Vince Holding focuses on timeless, modern designs and disciplined operations, while Ralph Lauren leverages global reach and strong brand storytelling. Both are adapting to evolving consumer trends through digital growth, brand strength, and a balance of tradition and innovation.
One-Year Price Performance
Image Source: Zacks Investment Research
The Case for Vince Holding
Vince Holding has reinforced its position in the premium apparel market through a sharp focus on execution, brand consistency and consumer engagement. In the second quarter of fiscal 2025, direct-to-consumer (“DTC”) sales rose 5.5%, reflecting balanced growth across stores and e-commerce. By extending its full-price selling period, Vince Holding protected profitability while deepening its appeal among style-conscious consumers seeking modern, understated luxury.
Profitability surged on the back of operational efficiency and pricing discipline. Adjusted EBITDA jumped to $6.7 million in the fiscal second quarter from $2.7 million in the prior year. Gross margin expanded 300 basis points to 50.4%, driven by favorable product costing, reduced discounting and strategic pricing actions that reflect the enduring strength of Vince Holding’s luxury apparel offering.
Vince Holding’s agile supply-chain strategy has proven to be a major competitive advantage. The company effectively mitigated tariff impacts by diversifying sourcing locations, negotiating with vendors and implementing selective price increases. These initiatives are expected to offset roughly half of incremental tariff costs, preserving profitability while maintaining the brand’s hallmark quality and customer satisfaction.
The company’s balance sheet tells a similar story of discipline and resilience. Long-term debt has been pared down to $31.1 million from $54.4 million a year earlier, supported by lower interest expenses and $42.6 million in available liquidity. With this financial flexibility, Vince Holding is positioned to reinvest in marketing, expand its retail footprint and continue refining the product offering, laying the groundwork for sustainable, profitable growth.
The Case for Ralph Lauren
Ralph Lauren entered fiscal 2026 with strong momentum, reflecting the continued success of its global brand elevation strategy and disciplined execution. In the first quarter of fiscal 2026, revenues rose 14% year over year to $1.72 billion, driven by double-digit growth across all regions and channels. Comparable store sales climbed 13%, with balanced gains in both retail and digital, underscoring the enduring appeal of Ralph Lauren’s elevated brand positioning and diversified consumer reach.
Profitability advanced meaningfully, reflecting strong full-price demand and disciplined cost management. Adjusted operating margin expanded 270 basis points to 17%, supported by an increase in average unit retail and reduced promotional activity. Gross margin improved to 72.3%, as pricing power and favorable mix offset higher tariffs and input costs. These results highlight the success of Ralph Lauren’s brand elevation strategy and its focus on quality, heritage and global desirability.
International growth remained a key driver, with Asia up 21%, led by China’s 30% surge following major marketing activations such as the Shanghai fashion presentation, and Europe up 16% on strong retail and wholesale performance. North America rose 8%, reflecting continued DTC strength and digital momentum. The company also expanded global footprint with 24 new stores across major cities, reinforcing its “key city ecosystem” model.
Ralph Lauren’s financial foundation remains robust, with $2.3 billion in cash and $1.6 billion in total debt, giving it ample flexibility to invest in marketing, technology and brand experiences. The company returned $300 million to shareholders through dividends and buybacks in the quarter while raising its full-year outlook for both revenue and operating margin growth. With a disciplined strategy and global resonance, Ralph Lauren continues to balance heritage and innovation, cementing its leadership in modern luxury apparel.
How Does the Zacks Consensus Estimate Compare for VNCE & RL?
The Zacks Consensus Estimate for Vince Holding’s fiscal 2025 and 2026 EPS has remained unchanged at 60 cents and 8 cents, respectively, over the past 30 days.
Image Source: Zacks Investment Research
The EPS estimate for Ralph Lauren for fiscal 2026 and 2027 has moved up 7 cents to $15.00 and 11 cents to $16.35, respectively, during this time.
Image Source: Zacks Investment Research
Price Performance of VNCE & RL
Vince Holding is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 41.04, significantly above its one-year median of 5.70. In comparison, Ralph Lauren’s forward P/E ratio is 20.75, slightly higher than its median of 19.38.
Image Source: Zacks Investment Research
Over the past year, Vince Holding stock has surged 53.3%, outpacing the S&P 500’s 23% growth, though trailing Ralph Lauren, which climbed 65.5% over the same period.
VNCE vs. RL: Which Stock Has the Upper Hand?
Both Vince Holding and Ralph Lauren stand out as strong contenders in the evolving luxury apparel landscape, each demonstrating strategic clarity and brand strength. Ralph Lauren continues to impress with the global scale, disciplined brand elevation strategy and consistent performance across regions, reinforcing its status as a benchmark for heritage-driven luxury. Vince Holding, however, is showing notable momentum through operational efficiency, disciplined pricing and a sharper focus on modern, minimalist design that resonates with today’s premium consumers.
While Ralph Lauren offers dependable stability and global reach, Vince Holding’s nimble execution and improving profitability suggest slightly greater upside potential at this juncture, making it a more attractive pick for investors seeking growth within the high-end apparel segment.
Image: Bigstock
VNCE vs. RL: Which Luxury Apparel Stock Is the Better Buy?
Key Takeaways
Vince Holding Corp. ((VNCE - Free Report) ) and Ralph Lauren Corporation ((RL - Free Report) ) are two standout names in the Textile-Apparel industry, an ever-evolving sector influenced by changing consumer preferences, global supply-chain challenges and a growing emphasis on brand authenticity. Success in this space depends on a company’s ability to blend tradition with innovation, balancing craftsmanship and quality with digital transformation and sustainability. As tariffs rise, retail dynamics shift and competition intensifies, apparel brands must stay agile and strengthen their brand identity to thrive in this demanding marketplace.
In this face-off, Vince Holding and Ralph Lauren reflect different strategies in a changing apparel market. Vince Holding focuses on timeless, modern designs and disciplined operations, while Ralph Lauren leverages global reach and strong brand storytelling. Both are adapting to evolving consumer trends through digital growth, brand strength, and a balance of tradition and innovation.
One-Year Price Performance
Image Source: Zacks Investment Research
The Case for Vince Holding
Vince Holding has reinforced its position in the premium apparel market through a sharp focus on execution, brand consistency and consumer engagement. In the second quarter of fiscal 2025, direct-to-consumer (“DTC”) sales rose 5.5%, reflecting balanced growth across stores and e-commerce. By extending its full-price selling period, Vince Holding protected profitability while deepening its appeal among style-conscious consumers seeking modern, understated luxury.
Profitability surged on the back of operational efficiency and pricing discipline. Adjusted EBITDA jumped to $6.7 million in the fiscal second quarter from $2.7 million in the prior year. Gross margin expanded 300 basis points to 50.4%, driven by favorable product costing, reduced discounting and strategic pricing actions that reflect the enduring strength of Vince Holding’s luxury apparel offering.
Vince Holding’s agile supply-chain strategy has proven to be a major competitive advantage. The company effectively mitigated tariff impacts by diversifying sourcing locations, negotiating with vendors and implementing selective price increases. These initiatives are expected to offset roughly half of incremental tariff costs, preserving profitability while maintaining the brand’s hallmark quality and customer satisfaction.
The company’s balance sheet tells a similar story of discipline and resilience. Long-term debt has been pared down to $31.1 million from $54.4 million a year earlier, supported by lower interest expenses and $42.6 million in available liquidity. With this financial flexibility, Vince Holding is positioned to reinvest in marketing, expand its retail footprint and continue refining the product offering, laying the groundwork for sustainable, profitable growth.
The Case for Ralph Lauren
Ralph Lauren entered fiscal 2026 with strong momentum, reflecting the continued success of its global brand elevation strategy and disciplined execution. In the first quarter of fiscal 2026, revenues rose 14% year over year to $1.72 billion, driven by double-digit growth across all regions and channels. Comparable store sales climbed 13%, with balanced gains in both retail and digital, underscoring the enduring appeal of Ralph Lauren’s elevated brand positioning and diversified consumer reach.
Profitability advanced meaningfully, reflecting strong full-price demand and disciplined cost management. Adjusted operating margin expanded 270 basis points to 17%, supported by an increase in average unit retail and reduced promotional activity. Gross margin improved to 72.3%, as pricing power and favorable mix offset higher tariffs and input costs. These results highlight the success of Ralph Lauren’s brand elevation strategy and its focus on quality, heritage and global desirability.
International growth remained a key driver, with Asia up 21%, led by China’s 30% surge following major marketing activations such as the Shanghai fashion presentation, and Europe up 16% on strong retail and wholesale performance. North America rose 8%, reflecting continued DTC strength and digital momentum. The company also expanded global footprint with 24 new stores across major cities, reinforcing its “key city ecosystem” model.
Ralph Lauren’s financial foundation remains robust, with $2.3 billion in cash and $1.6 billion in total debt, giving it ample flexibility to invest in marketing, technology and brand experiences. The company returned $300 million to shareholders through dividends and buybacks in the quarter while raising its full-year outlook for both revenue and operating margin growth. With a disciplined strategy and global resonance, Ralph Lauren continues to balance heritage and innovation, cementing its leadership in modern luxury apparel.
How Does the Zacks Consensus Estimate Compare for VNCE & RL?
The Zacks Consensus Estimate for Vince Holding’s fiscal 2025 and 2026 EPS has remained unchanged at 60 cents and 8 cents, respectively, over the past 30 days.
Image Source: Zacks Investment Research
The EPS estimate for Ralph Lauren for fiscal 2026 and 2027 has moved up 7 cents to $15.00 and 11 cents to $16.35, respectively, during this time.
Image Source: Zacks Investment Research
Price Performance of VNCE & RL
Vince Holding is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 41.04, significantly above its one-year median of 5.70. In comparison, Ralph Lauren’s forward P/E ratio is 20.75, slightly higher than its median of 19.38.
Image Source: Zacks Investment Research
Over the past year, Vince Holding stock has surged 53.3%, outpacing the S&P 500’s 23% growth, though trailing Ralph Lauren, which climbed 65.5% over the same period.
VNCE vs. RL: Which Stock Has the Upper Hand?
Both Vince Holding and Ralph Lauren stand out as strong contenders in the evolving luxury apparel landscape, each demonstrating strategic clarity and brand strength. Ralph Lauren continues to impress with the global scale, disciplined brand elevation strategy and consistent performance across regions, reinforcing its status as a benchmark for heritage-driven luxury. Vince Holding, however, is showing notable momentum through operational efficiency, disciplined pricing and a sharper focus on modern, minimalist design that resonates with today’s premium consumers.
While Ralph Lauren offers dependable stability and global reach, Vince Holding’s nimble execution and improving profitability suggest slightly greater upside potential at this juncture, making it a more attractive pick for investors seeking growth within the high-end apparel segment.
VNCE currently has a Zacks Rank #1 (Strong Buy), while RL carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.