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RL's "Next Great Chapter" Strategy Powers Broad-Based Global Growth
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Key Takeaways
RL's revenues rose 14% to $2.01B, with growth across all regions and channels.
The "Next Great Chapter: Drive" plan boosts brand storytelling, premium sales and global reach.
Margin gains stem from supply-chain diversification, cost control and expanding digital engagement.
Ralph Lauren Corporation’s (RL - Free Report) “Next Great Chapter: Drive” strategy has propelled the company into a new era of brand elevation and balanced global expansion. Centered on three strategic pillars — elevating its lifestyle brand, driving core and high-potential categories, and winning in key cities — the plan emphasizes disciplined execution, premium storytelling and stronger consumer engagement.
In second-quarter fiscal 2026, the company’s revenues grew 14% year over year to $2.01 billion, with robust growth across North America, Europe and Asia. This broad-based momentum underscores the power of Ralph Lauren’s multi-engine growth model, which combines elevated brand storytelling, disciplined execution and a focus on delivering higher-quality, full-price sales rather than relying on promotional activity. The company’s diversified approach, balancing its iconic core offerings like polos and sweaters with high-growth categories such as women’s apparel, outerwear and handbags, has broadened its appeal across demographics.
A key growth driver has been the brand’s ability to engage consumers through elevated marketing and cultural relevance. Ralph Lauren amplified its cultural relevance through high-impact campaigns at Wimbledon, the U.S. Open and the Ryder Cup, generating billions of global impressions and attracting 1.5 million new customers. Its integration of AI-powered personalization tools like “Ask Ralph,” developed with Microsoft, further strengthens digital engagement and enhances conversion rates.
Meanwhile, strategic supply chain diversification and cost management supported margin expansion despite inflationary pressures and tariffs. Backed by a strong balance sheet, disciplined expense control and growing consumer loyalty, Ralph Lauren remains well-positioned to capture further market share across regions and channels, reinforcing its vision to lead in the global premium and luxury lifestyle market.
RL’s Price Performance, Valuation & Estimates
Ralph Lauren’s shares have gained 47.3% year to date against the industry’s 19.3% decline.
RL Stock's Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, RL trades at a forward price-to-earnings ratio of 21.0X compared with the industry’s average of 15.74X.
RL Stock's P/E Valuation
Image Source: Zacks Investment Research
Ralph Lauren currently carries a Zacks Rank #2 (Buy).
Other Key Picks in the Consumer Discretionary Space
CROX delivered a trailing four-quarter earnings surprise of 14.3%, on average. The Zacks Consensus Estimate for Crocs' current financial-year EPS indicates a decline of 7.9% from the year-ago number.
Revolve Group, Inc. (RVLV - Free Report) operates as an online fashion retailer for millennial and Generation Z consumers in the United States and internationally. It carries a Zacks Rank #2 at present. Revolve Group delivered a trailing four-quarter average earnings surprise of 61.7%.
The Zacks Consensus Estimate for RVLV’s current fiscal-year revenues implies growth of 6.8% from the year-ago actuals.
Kontoor Brands, Inc. (KTB - Free Report) , a global lifestyle apparel company, currently carries a Zacks Rank #2. KTB has a trailing four-quarter earnings surprise of 14.04%, on average.
The Zacks Consensus Estimate for Kontoor Brands’ current financial-year sales and earnings suggests growth of 19.4% and 12.5%, respectively, from the year-ago reported numbers.
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RL's "Next Great Chapter" Strategy Powers Broad-Based Global Growth
Key Takeaways
Ralph Lauren Corporation’s (RL - Free Report) “Next Great Chapter: Drive” strategy has propelled the company into a new era of brand elevation and balanced global expansion. Centered on three strategic pillars — elevating its lifestyle brand, driving core and high-potential categories, and winning in key cities — the plan emphasizes disciplined execution, premium storytelling and stronger consumer engagement.
In second-quarter fiscal 2026, the company’s revenues grew 14% year over year to $2.01 billion, with robust growth across North America, Europe and Asia. This broad-based momentum underscores the power of Ralph Lauren’s multi-engine growth model, which combines elevated brand storytelling, disciplined execution and a focus on delivering higher-quality, full-price sales rather than relying on promotional activity. The company’s diversified approach, balancing its iconic core offerings like polos and sweaters with high-growth categories such as women’s apparel, outerwear and handbags, has broadened its appeal across demographics.
A key growth driver has been the brand’s ability to engage consumers through elevated marketing and cultural relevance. Ralph Lauren amplified its cultural relevance through high-impact campaigns at Wimbledon, the U.S. Open and the Ryder Cup, generating billions of global impressions and attracting 1.5 million new customers. Its integration of AI-powered personalization tools like “Ask Ralph,” developed with Microsoft, further strengthens digital engagement and enhances conversion rates.
Meanwhile, strategic supply chain diversification and cost management supported margin expansion despite inflationary pressures and tariffs. Backed by a strong balance sheet, disciplined expense control and growing consumer loyalty, Ralph Lauren remains well-positioned to capture further market share across regions and channels, reinforcing its vision to lead in the global premium and luxury lifestyle market.
RL’s Price Performance, Valuation & Estimates
Ralph Lauren’s shares have gained 47.3% year to date against the industry’s 19.3% decline.
RL Stock's Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, RL trades at a forward price-to-earnings ratio of 21.0X compared with the industry’s average of 15.74X.
RL Stock's P/E Valuation
Image Source: Zacks Investment Research
Ralph Lauren currently carries a Zacks Rank #2 (Buy).
Other Key Picks in the Consumer Discretionary Space
Crocs (CROX - Free Report) , a leading footwear company, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CROX delivered a trailing four-quarter earnings surprise of 14.3%, on average. The Zacks Consensus Estimate for Crocs' current financial-year EPS indicates a decline of 7.9% from the year-ago number.
Revolve Group, Inc. (RVLV - Free Report) operates as an online fashion retailer for millennial and Generation Z consumers in the United States and internationally. It carries a Zacks Rank #2 at present. Revolve Group delivered a trailing four-quarter average earnings surprise of 61.7%.
The Zacks Consensus Estimate for RVLV’s current fiscal-year revenues implies growth of 6.8% from the year-ago actuals.
Kontoor Brands, Inc. (KTB - Free Report) , a global lifestyle apparel company, currently carries a Zacks Rank #2. KTB has a trailing four-quarter earnings surprise of 14.04%, on average.
The Zacks Consensus Estimate for Kontoor Brands’ current financial-year sales and earnings suggests growth of 19.4% and 12.5%, respectively, from the year-ago reported numbers.