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Ralph Lauren Digital Comps Rise 8% as E-Commerce Momentum Builds
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Key Takeaways
RL's women's apparel, outerwear and handbags each grew more than 20% during the first quarter.
RL sees significant long-term growth potential in women's apparel despite its current scale.
RL plans to expand its handbag portfolio with the Blaze collection to support future growth.
Ralph Lauren Corporation (RL - Free Report) delivered solid first-quarter fiscal 2027 performance in North America Retail, with comparable sales increasing 9%, supported by strength in its full-price channels. Digital comparable sales also rose 8%, aided by healthy traffic trends. Digital performance further benefited from merchandising optimization and investments in full-funnel marketing activations.
The company also reported strong global retail comparable sales growth, with total company retail comps increasing 12%. Growth was balanced between Ralph Lauren's own digital and brick-and-mortar channels, reflecting strength across both retail formats. Meanwhile, total digital ecosystem sales, including the company's own websites and wholesale digital accounts, grew at a mid-teens rate, with contributions from all regions.
Ralph Lauren continues to focus on technology, AI and analytics to support creativity, productivity and customer engagement. During the first quarter, the company improved user experiences across its digital commerce sites and expanded brand discoverability across key large language models. It is also participating in select AI tests to better understand evolving consumer behavior on newer platforms. These efforts are part of the company's broader strategy to leverage technology and analytics to strengthen consumer engagement and business capabilities.
The company added 1.5 million new customers to its direct-to-consumer (DTC) businesses during the first quarter, led by growth at Ralph Lauren stores and digital commerce sites. Looking ahead, Ralph Lauren expects marketing expense to represent approximately 8% of sales in fiscal 2027.
Overall, Ralph Lauren's digital business showed broad strength during the first quarter, supported by growth in digital traffic, merchandising initiatives, marketing investment and expanding customer engagement efforts. The company also continues to invest in technology, AI and analytics across its consumer ecosystem.
The Zacks Rundown for RL
Ralph Lauren’s shares have lost 2.4% in the past three months against the industry’s 6.9% growth. The company currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
From a valuation standpoint, RL trades at a forward price-to-earnings ratio of 18.49X compared with the industry’s average of 15.05X. Ralph Lauren currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RL’s current and next fiscal-year earnings implies a rise of 13.3% and 10.6%, respectively, from the year-ago figures.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks have been discussed below:
Kontoor Brands, Inc. (KTB - Free Report) , a lifestyle apparel company, designs, manufactures, procures, sells and licenses apparel, footwear and accessories, primarily under the Wrangler, Lee and Helly Hansen brands. At present, KTB carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for KTB’s current fiscal-year sales and earnings implies a decline of 14.3% and 6.1%, respectively, from the year-ago figures. KTB delivered a trailing four-quarter earnings surprise of 21.4%, on average.
Savers Value Village, Inc. (SVV - Free Report) , a thrift operator, sells second-hand merchandise in retail stores in the United States, Canada and Australia. SVV currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for SVV’s current financial-year sales and earnings is expected to rise 6.1% and 6.7%, respectively, from the corresponding year-ago reported figures. SVV delivered a trailing four-quarter earnings surprise of 1.6%, on average.
Superior Group of Companies, Inc. (SGC - Free Report) produces, manufactures and sells promotional products and branded uniforms, and healthcare apparel and accessories in the United States and internationally. At present, SGC carries a Zacks Rank of 2.
The Zacks Consensus Estimate for SGC’s current fiscal-year sales and earnings implies growth of 3.1% and 39.1%, respectively, from the year-ago reported figures. SGC delivered a trailing four-quarter negative earnings surprise of 90.2%, on average.
View the Zacks #1 Rank List
Image: Bigstock
Ralph Lauren Digital Comps Rise 8% as E-Commerce Momentum Builds
Key Takeaways
Ralph Lauren Corporation (RL - Free Report) delivered solid first-quarter fiscal 2027 performance in North America Retail, with comparable sales increasing 9%, supported by strength in its full-price channels. Digital comparable sales also rose 8%, aided by healthy traffic trends. Digital performance further benefited from merchandising optimization and investments in full-funnel marketing activations.
The company also reported strong global retail comparable sales growth, with total company retail comps increasing 12%. Growth was balanced between Ralph Lauren's own digital and brick-and-mortar channels, reflecting strength across both retail formats. Meanwhile, total digital ecosystem sales, including the company's own websites and wholesale digital accounts, grew at a mid-teens rate, with contributions from all regions.
Ralph Lauren continues to focus on technology, AI and analytics to support creativity, productivity and customer engagement. During the first quarter, the company improved user experiences across its digital commerce sites and expanded brand discoverability across key large language models. It is also participating in select AI tests to better understand evolving consumer behavior on newer platforms. These efforts are part of the company's broader strategy to leverage technology and analytics to strengthen consumer engagement and business capabilities.
The company added 1.5 million new customers to its direct-to-consumer (DTC) businesses during the first quarter, led by growth at Ralph Lauren stores and digital commerce sites. Looking ahead, Ralph Lauren expects marketing expense to represent approximately 8% of sales in fiscal 2027.
Overall, Ralph Lauren's digital business showed broad strength during the first quarter, supported by growth in digital traffic, merchandising initiatives, marketing investment and expanding customer engagement efforts. The company also continues to invest in technology, AI and analytics across its consumer ecosystem.
The Zacks Rundown for RL
Ralph Lauren’s shares have lost 2.4% in the past three months against the industry’s 6.9% growth. The company currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
From a valuation standpoint, RL trades at a forward price-to-earnings ratio of 18.49X compared with the industry’s average of 15.05X. Ralph Lauren currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RL’s current and next fiscal-year earnings implies a rise of 13.3% and 10.6%, respectively, from the year-ago figures.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks have been discussed below:
Kontoor Brands, Inc. (KTB - Free Report) , a lifestyle apparel company, designs, manufactures, procures, sells and licenses apparel, footwear and accessories, primarily under the Wrangler, Lee and Helly Hansen brands. At present, KTB carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for KTB’s current fiscal-year sales and earnings implies a decline of 14.3% and 6.1%, respectively, from the year-ago figures. KTB delivered a trailing four-quarter earnings surprise of 21.4%, on average.
Savers Value Village, Inc. (SVV - Free Report) , a thrift operator, sells second-hand merchandise in retail stores in the United States, Canada and Australia. SVV currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for SVV’s current financial-year sales and earnings is expected to rise 6.1% and 6.7%, respectively, from the corresponding year-ago reported figures. SVV delivered a trailing four-quarter earnings surprise of 1.6%, on average.
Superior Group of Companies, Inc. (SGC - Free Report) produces, manufactures and sells promotional products and branded uniforms, and healthcare apparel and accessories in the United States and internationally. At present, SGC carries a Zacks Rank of 2.
The Zacks Consensus Estimate for SGC’s current fiscal-year sales and earnings implies growth of 3.1% and 39.1%, respectively, from the year-ago reported figures. SGC delivered a trailing four-quarter negative earnings surprise of 90.2%, on average.