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New York-based Ralph Lauren Corporation (RL) designs, markets, and distributes lifestyle products in North America, Europe, Asia, and internationally. With a market cap of $11.6 billion, Ralph Lauren’s offerings include a range of men's, women's, and children's clothing, footwear, accessories, home decor, fragrances and more.
Companies worth $10 billion or more are generally described as "large-cap stocks," Ralph Lauren fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the apparel manufacturing industry. It is a global leader in the design, marketing, and distribution of luxury lifestyle products.
Ralph Lauren touched its all-time high of $192.03 on Mar. 21 and is now trading marginally below that peak. RL has gained 3.6% over the past three months, lagging behind the S&P 500 Index’s ($SPX) 5.2% gains during the same time frame.
However, over the longer term, RL has substantially outperformed SPX. RL gained 32.2% in 2024 and 70% over the past 52 weeks compared to SPX’s 20.2% gains on a YTD basis and 32.7% returns over the past year.
To confirm the bullish trend, Ralph Lauren has traded mostly above its 50-day and 200-day moving averages over the past year. However, it has experienced some fluctuation in the recent months.
Despite reporting better-than-expected earnings, Ralph Lauren stock dipped 3.4% after the release of its Q1 earnings result on Aug. 8. The company's net margin rose 2.3% to 11.1%, driven by lower cost of goods sold and restructuring and other charges. This led to a 27.6% year-over-year growth in net income, reaching $168.6 million, and its EPS of $2.70 exceeded the consensus estimates by 10.2%.
Although the company showcased substantial growth in profitability, its topline experienced modest growth of 1% to $1.5 billion, which might not have impressed investors. Nonetheless, despite the initial drop in share prices, RL stock rebounded quickly and remained in positive territory for the next two trading sessions.
Ralph Lauren’s competitor, PVH Corp. (PVH), gained 27.5% over the past year and declined 21.4% on a YTD basis, underperforming RL.
Among the 16 analysts covering the RL stock, the consensus rating is a “Moderate Buy.” Although RL is trading above its mean price target of $183, the Street-high target of $250 represents a potential upside of 31.2% from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
