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Will Ralph Lauren's Next Great Chapter Plan & Digital Push Aid?
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Key Takeaways
Ralph Lauren benefits from its Next Great Chapter plan, boosting brand elevation and growth.
RL sees strong digital growth, with Asia up 35% and DTC comps rising in the high single digits.
RL expects fiscal 2026 revenue growth and margin expansion driven by pricing and cost leverage.
Ralph Lauren Corporation (RL - Free Report) is benefiting from its unique brand portfolio, product innovations and strategic execution of its Next Great Chapter plan. The company is advancing its digital transformation through personalization, data-driven insights and seamless omnichannel experiences. RL leverages advanced data analytics to tailor product recommendations, optimize pricing and refine marketing strategies across regions.
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 third-quarter fiscal 2026, global direct-to-consumer comparable store sales rose in high single digits. Digital commerce improved 7% in North America, 5% in Europe and 35% in Asia.
Digital sales now represent a growing share of total revenues, supported by continuous investments in personalization, enhanced mobile capabilities and integrated loyalty programs designed to connect with younger and more diverse consumers. 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. Continuous investments in personalization, mobile capabilities and loyalty integration have strengthened digital sales, enabling it to make deeper engagements with younger and more diverse consumer segments.
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.
For fiscal 2026, management expects revenues to increase in the high-single to low-double digits on a constant currency basis. Gross margin is likely to increase about 40-80 basis points (bps) for the fiscal year. Operating margin is now expected to expand approximately 100-140 bps in constant currency, primarily driven by operating expense leverage and gross margin expansion.
RL’s Price Performance, Valuation and Estimates
Ralph Lauren’s shares have gained 8% in the past six months against the industry’s 8.5% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, RL is trading at a forward price-to-earnings ratio of 21.72X compared with the industry’s average of 16.46X.
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 31.8% and 11%, respectively. The company’s EPS estimate for 2025 and 2026 has moved north in the past 30 days.
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 16.6%, on average. The Zacks Consensus Estimate for Crocs’ current financial-year EPS indicates a rise of 7.2% from the year-ago number.
Columbia Sportswear (COLM - Free Report) , which is a marketer and distributor of outdoor and active lifestyle apparel, footwear, accessories, currently carries a Zacks Rank of 2.
COLM delivered a trailing four-quarter earnings surprise of 25.2%, on average. The Zacks Consensus Estimate for COLM’ current financial-year sales indicates growth of 2% 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 15.6% from the corresponding year-ago reported figure. KTB delivered a trailing four-quarter earnings surprise of 13.9%, on average.
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Will Ralph Lauren's Next Great Chapter Plan & Digital Push Aid?
Key Takeaways
Ralph Lauren Corporation (RL - Free Report) is benefiting from its unique brand portfolio, product innovations and strategic execution of its Next Great Chapter plan. The company is advancing its digital transformation through personalization, data-driven insights and seamless omnichannel experiences. RL leverages advanced data analytics to tailor product recommendations, optimize pricing and refine marketing strategies across regions.
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 third-quarter fiscal 2026, global direct-to-consumer comparable store sales rose in high single digits. Digital commerce improved 7% in North America, 5% in Europe and 35% in Asia.
Digital sales now represent a growing share of total revenues, supported by continuous investments in personalization, enhanced mobile capabilities and integrated loyalty programs designed to connect with younger and more diverse consumers. 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. Continuous investments in personalization, mobile capabilities and loyalty integration have strengthened digital sales, enabling it to make deeper engagements with younger and more diverse consumer segments.
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.
For fiscal 2026, management expects revenues to increase in the high-single to low-double digits on a constant currency basis. Gross margin is likely to increase about 40-80 basis points (bps) for the fiscal year. Operating margin is now expected to expand approximately 100-140 bps in constant currency, primarily driven by operating expense leverage and gross margin expansion.
RL’s Price Performance, Valuation and Estimates
Ralph Lauren’s shares have gained 8% in the past six months against the industry’s 8.5% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, RL is trading at a forward price-to-earnings ratio of 21.72X compared with the industry’s average of 16.46X.
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 31.8% and 11%, respectively. The company’s EPS estimate for 2025 and 2026 has moved north in the past 30 days.
Image Source: Zacks Investment Research
Ralph Lauren currently carries a Zacks Rank #2 (Buy).
Other 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 16.6%, on average. The Zacks Consensus Estimate for Crocs’ current financial-year EPS indicates a rise of 7.2% from the year-ago number.
Columbia Sportswear (COLM - Free Report) , which is a marketer and distributor of outdoor and active lifestyle apparel, footwear, accessories, currently carries a Zacks Rank of 2.
COLM delivered a trailing four-quarter earnings surprise of 25.2%, on average. The Zacks Consensus Estimate for COLM’ current financial-year sales indicates growth of 2% 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 15.6% from the corresponding year-ago reported figure. KTB delivered a trailing four-quarter earnings surprise of 13.9%, on average.