Shares of luxury fashion and lifestyle brand Ralph Lauren Corp. (NYSE: RL) have surged more than 200% over the last two and a half years as the company has consistently outperformed expectations. But after such a strong rally, the stock could be nearing the end of its runway.
Despite headwinds facing many retailers, including tariffs, geopolitical uncertainty, and soft consumer sentiment, the luxury company has continued to deliver multiple consecutive quarters of earnings and revenue beats. Much of that strength is a result of the company's strategic plan, which is focused on higher-margin direct-to-consumer sales, less discounting, and expansion in key global cities.
