Can Ralph Lauren's Digital & Global Expansions Boost Profitability?

Ralph Lauren Corporation RL continues to accelerate its digital transformation through enhanced personalization, data-driven insights and seamless omnichannel experiences. By leveraging advanced analytics, the company tailors product recommendations, optimizes pricing and refines marketing strategies across regions. With an aim to expand globally, RL is executing a strategic plan focused on high-growth markets, particularly in Asia and Europe, while reinforcing its presence across core regions.

RL’s digital capabilities serve as a key growth driver, enabling the brand to deepen customer engagement and broaden its global reach. The company is making significant progress in expanding digital and omnichannel capabilities through investments in mobile, omnichannel and fulfillment. In first-quarter fiscal 2026, global direct-to-consumer comparable store sales (comps) increased 13%, backed by positive retail comps in all regions and channels. 

During the fiscal first quarter, digital sales were up 19% in North America, 11% in Europe and 35% in Asia. Digital sales now represent a growing share of total revenues, supported by continuous investments in personalization, enhanced mobile capabilities and integrated loyalty programs designed to connect with younger and more diverse consumers. It experienced significant growth in its digital channels across key regions.

Ralph Lauren continues to benefit from the effective execution of its Next Great Chapter plan, which serves as the foundation of its growth strategy, emphasizing brand elevation, consumer centricity and operational agility. Management is confident that the Next Great Chapter plan will drive sustainable growth, expand market share and reinforce its leadership in the luxury lifestyle space.

Ralph Lauren is optimizing distribution, strengthening wholesale partnerships and enhancing its retail network to reinforce its premium positioning.  In fact, the company’s retail and wholesale operations remain core pillars of its premium lifestyle business, contributing to a balanced and diversified revenue mix. Overall, Ralph Lauren’s strategic initiatives including digital advancements and disciplined execution of its Next Great Chapter plan, coupled with brand elevation and an expanding global footprint, offer a competitive edge in the premium lifestyle market.

RL’s Price Performance, Valuation and Estimates

Ralph Lauren’s shares have gained 34% year to date against the industry’s 31.2% decline.

From a valuation standpoint, RL trades at a forward price-to-earnings ratio of 19.95X compared with the industry’s average of 11.04X.

The Zacks Consensus Estimate for RL’s fiscal 2026 and fiscal 2027 earnings per share (EPS) indicates year-over-year growth of 21.3% and 8.5%, respectively. The company’s EPS estimate for fiscal 2026 and fiscal 2027 has moved south in the past 30 days.

Ralph Lauren currently carries a Zacks Rank #2 (Buy).

Other Stocks to Consider in the Consumer Staples Space

Boyd Gaming BYD, which is a gaming company, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. 

BYD delivered a trailing four-quarter earnings surprise of 9.1%, on average. The Zacks Consensus Estimate for BYD’s current financial-year EPS indicates growth of 6.1% from the year-ago number. 

Guess?, Inc. GES, which is a designer and marketer of casual apparel and accessories, currently carries a Zacks Rank of 2. 

GES delivered a trailing four-quarter earnings surprise of 26.7%, on average. The Zacks Consensus Estimate for GES’ current financial-year sales indicates growth of 7% from the year-ago number. 

Hanesbrands Inc. HBI, which is a designer and manufacturer of apparel essentials for men, women and children in the US and internationally, currently carries a Zacks Rank of 2.

The Zacks Consensus Estimate for HBI’s current financial-year EPS is expected to rise 65% from the corresponding year-ago reported figure. HBI delivered a trailing four-quarter earnings surprise of 56.1%, on average.

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This article originally published on Zacks Investment Research (zacks.com).

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