Opinions Jim Cramer - Mad Money
Polo Ralph Lauren Corp.RLBUYNov 02, 2026
Jim Cramer - Mad MoneyStock price when the opinion was issued
As of Nov 05, 2026. Market Open.
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Is up 25% this year, but has recently pulled back from highs. He's long owned it. Over 4 years, RL has rallied 280%, beating the S&P's 77%. Earnings have doubled the past 3 fiscal year, and boasts 17% same-store sales growth. But rising inflation is making the market worry about the consumer. Today, the Fed chief was not tough on inflation, which triggered a market sell-off. But don't sell RL based on macro reasons. RL has been positioning itself as a luxury brand to protect it from swings in the wider economy. RL has more pricer power than ever which translates to wider margins. RL is making a big push into direct-to-consumer sales and expanding into accessories and to younger consumers. Buy ahead of earnings.
Is up 32% this year in a tricky year for apparel stocks. The stock has ripped since Taylor Swift announced her engagement (her and fiance were wearing RL). But Wall Street didn't love RL's investor day yesterday, falling 2.7% today. The new financial targets look disappointing, but RL promised steady margin expansion. Their share buyback plan is on schedule. More important is their plan to achieve growth: better marketing and customer retention, focusing on areas like menswear and women's outerwear; focusing on key cities to grow, and Asian strategy (key area of growth). The targets were not stunning, but still impressive and attainable. Trades at only 20x PE, despite a big run this year. RL should be trading a premium vs. the S&P. He remains bullish.
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Premium contentRL reported in the last week of May an impressive Q4 earnings and revenue beat. On a constant-currency basis, earnings rose 9% YOY. True, North American revenues slipped 3% while comp store sales declined 4% and e-commerce shed 3%. However, the overall North American wholesale business gained 11%. European revenues were -1% YOY, but the stores advanced 8% and online business rose 6%. Take note of Asia with revenues jumping 13% YOY with 20% growth in traditional stores and 19% in the digital business. Adjusted operating expenses increased 3%. EPS clocked in at $0.90, easily beating the expected the $0.61 forecast.
Premium contentRalph Lauren Corporation is a global leader in the design, marketing and distribution of premium lifestyle products in five categories: apparel, footwear & accessories, home, fragrances and hospitality. For more than 50 years, Ralph Lauren's reputation and distinctive image have been consistently developed across an expanding number of products, brands and international markets. The Company's brand names, which include Ralph Lauren, Ralph Lauren Collection, Ralph Lauren Purple Label, Polo Ralph Lauren, Double RL, Lauren Ralph Lauren, Polo Ralph Lauren Children, Chaps and Club Monaco, among others, constitute one of the world's most widely recognized families of consumer brands.
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Under this CEO, sales have grown at 13% annual compound growth rate over the past 5 years, outpacing peers and adjusted EPS growing at 57%. Since bottoming in late 2022, shares have rallied 380% vs. 110% for the S&P. RL enjoys growth in North America as well as Asia. Accessories, outerwear and women's apparel are also strong segments, not just men's. Cutting out wholesaler channels improved gross margins. They had a great quarter in early August, but shares have pulled back late August and September--all consumer names fell from rising oil prices. RL has since recovered. They report Thursday.