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New York-based Ralph Lauren Corporation (RL) designs, markets, and distributes lifestyle products. Its offerings include a range of men's, women's, and children's clothing, footwear and accessories. With a market cap of $10.9 billion, Ralph Lauren operations span North America, Europe, Asia, and internationally.
The apparel manufacturer has substantially outperformed the broader market over the past year. Over the past 52 weeks, RL gained 53%, outpacing the S&P 500 Index’s ($SPX) 27.5% returns. In 2024, RL is up 18.7% compared to SPX’s 17.8% gains on a YTD basis.
Zooming in further, RL outperformed the S&P 500 Cons Disc Sector SPDR’s (XLY) 13.2% returns over the past 52 weeks and 4.3% gains on a YTD basis.
Shares of Ralph Lauren dipped 3.4% following its Q1 earnings release on Aug. 7. The company’s revenue rose a modest 1.1% year-over-year to $1.5 billion, while adjusted EPS grew 15.4% to $2.70, exceeding the consensus estimates by 10.2%. Additionally, Ralph Lauren’s effective cost management contributed to a significant 27.6% yearly growth in net income to $168.6 million. However, the stock quickly rebounded, remaining in positive territory over the next two trading sessions.
For the current fiscal year, ending in March 2025, analysts expect Ralph Lauren to report an EPS growth of 8.9% yearly to $11.23. Moreover, the company’s earnings surprise history is robust. It beat the consensus estimates in each of the last four quarters.
Among the 16 analysts covering the RL stock, the consensus rating is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings, one “Moderate Buy,” five “Holds,” and one “Strong Sell.”
This configuration has been stable over the past months.
On Aug. 7, TD Cowen analyst John Kernan maintained a “Buy” rating with a price target of $193, citing Ralph Lauren’s strong brand resonance and consistent performance, despite certain market challenges.
RL’s mean price target of $183 represents a premium of 6.9% from current price levels. The street-high target of $250 indicates a potential upside of 46.1%.
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.
