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Will RL's Next Great Chapter Plan & Digital Acceleration Drive Growth?

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Key Takeaways

  • Ralph Lauren is driving growth through its iconic brands, product innovation and Next Great Chapter strategy.
  • The company boosts digital performance with personalization, analytics-driven decisions and omnichannel gains.
  • Ralph Lauren sees broad retail momentum, with 13% global DTC comparable sales growth in fiscal Q2 2026.

Ralph Lauren Corporation (RL - Free Report) continues to benefit from its iconic brand portfolio, constant product innovations and disciplined execution of its Next Great Chapter strategy. The company is accelerating its digital transformation by enhancing personalization, strengthening data-driven decision-making and delivering seamless omnichannel experiences. 

Ralph Lauren is optimizing distribution, strengthening wholesale partnerships and enhancing its retail network to reinforce its premium positioning. The company has been experiencing significant growth in its digital channels across key regions. Leveraging advanced analytics, RL tailors product recommendations, optimizes pricing and sharpens its regional marketing strategies to drive stronger consumer engagement and profitability.

Ralph Lauren’s Next Great Chapter initiative serves as the foundation of its growth strategy, emphasizing brand elevation, consumer centricity and operational agility. This strategy is designed to create a more balanced global footprint by expanding into high-growth markets, such as Asia, while strengthening its presence in core regions. In second-quarter fiscal 2026, global direct-to-consumer comparable store sales increased 13%, backed by positive retail comps in all regions and channels.

Ralph Lauren’s retail and wholesale operations remain core pillars of its premium lifestyle business, contributing to a balanced and diversified revenue mix. Management is confident that the Next Great Chapter plan will drive sustainable growth, expand market share and reinforce its leadership in the luxury lifestyle space.

RL’s Price Performance, Valuation and Estimates

Ralph Lauren’s shares have surged 54.3% year to date against the industry’s 14.9% decline.

Zacks Investment Research
Image Source: Zacks Investment Research

From a valuation standpoint, RL is trading at a forward price-to-earnings ratio of 21.77X compared with the industry’s average of 16.22X.

Zacks Investment Research
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for RL’s fiscal 2026 and fiscal 2027 earnings per share (EPS) indicates year-over-year growth of 25% and 9.1%, respectively. The company’s EPS estimate for 2025 and 2026 has moved north in the past 30 days.

Zacks Investment Research
Image Source: Zacks Investment Research

Ralph Lauren currently carries a Zacks Rank #3 (Hold).

Key Picks in the Consumer Discretionary Space

Crocs, Inc. (CROX - Free Report) , which is 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. 

Guess?, Inc. (GES - Free Report) , which is a designer and marketer of casual apparel and accessories, currently carries a Zacks Rank #2 (Buy). 

GES delivered a trailing four-quarter earnings surprise of 45%, on average. The Zacks Consensus Estimate for GES’ current financial-year sales indicates growth of 8% from the year-ago number. 

Kontoor Brands, Inc. (KTB - Free Report) , which is an apparel company, currently carries a Zacks Rank of 2.

The Zacks Consensus Estimate for KTB’s current financial-year EPS is expected to rise 12.5% from the corresponding year-ago reported figure. KTB delivered a trailing four-quarter earnings surprise of 14%, on average.

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