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New York-based Ralph Lauren Corporation (RL) designs, markets, and distributes premium lifestyle products. Valued at a market cap of $13.2 billion, the company offers products in apparel, footwear, accessories, home furnishings, and other licensed product categories.
Shares of this premium apparel company have significantly outpaced the broader market over the past 52 weeks. RL has rallied nearly 76.7% over this time frame, while the broader S&P 500 Index ($SPX) has gained 31.3%. Moreover, on a YTD basis, the stock is up 52.6%, compared to SPX’s 25.5% gain.
Zooming in further, RL’s outperformance becomes more evident when compared to the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 31% gain over the past 52 weeks and 23.2% return on a YTD basis.
On Nov. 7, shares of RL jumped 6.6% after its robust Q2 earnings release. Its adjusted earnings of $2.54 per share outpaced the consensus estimates of $2.43 and increased 21% from a year ago. Its revenue also climbed 6% on an annual basis to $1.73 billion and surpassed the Wall Street estimates of $1.67 billion. The company witnessed growth across all regions, primarily due to brand strength, pricing efforts, and continued strategic investments. RL’s strong adjusted gross and operating margin expansion, coupled with raised full-year 2025 revenue and adjusted operating margin expansion outlook, might have further bolstered investor confidence.
For the current fiscal year, ending in March 2025, analysts expect RL’s EPS to increase 13.6% year over year to $11.71. The company’s earnings surprise history is promising. It beat the consensus estimates in each of the last four quarters.
Among the 16 analysts covering the stock, the consensus rating is a “Moderate Buy,” which is based on 10 “Strong Buy,” one “Moderate Buy,” four “Hold,” and one “Strong Sell” rating.
On Nov. 8, Telsey Advisory maintained an “Outperform” rating on RL and raised its price target to $247, which indicates a 12.3% potential upside from the current levels.
The mean price target of $240.93 represents a modest 9.5% upside from RL’s current price levels. The Street-high price target of $300 suggests a notable upside potential of 36.4%.
