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Ralph Lauren Corporation (RL), headquartered in New York, designs, markets and distributes luxury lifestyle products. With a market cap of $14.3 billion, the company markets and distributes a wide range of men's, women's, and children's clothing, footwear, accessories, home furnishings, fragrances, and more.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and RL fits right into that category with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the apparel manufacturing industry. RL’s iconic brand embodies classic American style, quality, and aspiration, driving pricing power, customer loyalty, and high gross profit margins. Furthermore, the company’s strategic global presence and focus on craftsmanship further enhance its appeal in the luxury goods sector, keeping it at the forefront of the industry.
Despite its notable strength, RL slipped 2.9% from its 52-week high of $237.16, achieved on Nov. 7. Over the past three months, RL stock rose 24.3%, outperforming the Nasdaq Composite’s ($NASX) 9.1% gains during the same time frame.
In the longer term, RL shares rose 59.7% on a YTD basis and climbed 58.2% over the past 52 weeks, outperforming NASX’s YTD gains of 30.4% and 32.4% returns over the last year.
To confirm the bullish trend, RL has been trading above its 50-day moving average since late August. The stock has been trading above its 200-day moving average over the past year.
Ralph Lauren's impressive performance can be attributed to its robust brand reputation, strategic diversification efforts, and successful execution of its accelerated growth plan, driven by exceptional direct-to-consumer sales, highlighting its effectiveness in engaging with consumers directly.
On Nov. 7, RL shares closed up more than 6% after reporting its Q2 results. The company’s total revenues of $1.73 billion, beating Wall Street forecasts of $1.67 billion. Its adjusted EPS was $2.54, surpassing analyst estimates of $2.43.
RL’s rival, V.F. Corporation (VFC) shares have lagged behind the stock, with 18.7% gains on a YTD basis and 20.1% over the past 52 weeks.
Wall Street analysts are moderately bullish on RL’s prospects. The stock has a consensus “Moderate Buy” rating from the 16 analysts covering it, and the mean price target of $241.73 suggests a potential upside of 5% from current price levels.
