Ralph Lauren(RL) ZACKS·2025-04-01 14:30Core Insights - Ralph Lauren Corporation (RL) has outperformed the industry and broader market, gaining 14.8% in the past six months while the industry declined by 8.2% and the S&P 500 fell by 1.6% [1] Company Performance - The company is executing a long-term strategy that includes expanding brand assortments, introducing innovative products, and optimizing distribution channels, positioning itself for sustained growth [4] - Ralph Lauren's focus on premiumization and brand elevation has led to increased demand for its core and emerging categories, supported by strategic investments in digital transformation and direct-to-consumer initiatives [5] Strategic Initiatives - The company is making strong progress on its "Next Great Chapter: Accelerate Plan," which aims to streamline operations, upgrade technology, and enhance customer experience [6] - Ralph Lauren is advancing its digital and omnichannel expansion, with significant growth in its direct-to-consumer (DTC) business, adding nearly two million new consumers in the third quarter of fiscal 2025 [7] Digital Engagement - Social media engagement is growing, with an expanding follower base across platforms, and the brand's focus on digital storytelling and personalized experiences is enhancing customer engagement [8] Sales Growth - In the fiscal third quarter, Ralph Lauren achieved significant digital sales growth, particularly in Europe and Asia, with strong DTC comparable store sales growth and higher full-price sales [9][10] - The company expects annual revenue growth for fiscal 2025 to exceed initial projections, with operating margins set to expand due to higher gross margins and improved cost efficiencies [11][12] Earnings Estimates - Analysts have revised EPS estimates upward, with current quarter and fiscal year estimates increasing by 2.6% and 4.8% to 13.62, respectively, indicating year-over-year growth rates of 16.5% and 13.5% [14]