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Yahoo
2 days ago
- Business
- Yahoo
Should You Consider Ralph Lauren Stock Despite Its Elevated Valuation?
Ralph Lauren Corporation RL is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 19.54x, notably higher than the industry average of 11.2x. This premium valuation reflects investor confidence in the company's robust brand equity, successful execution of its strategic transformation, and consistent performance across geographies and channels. RL's strong pricing power, margin expansion, disciplined inventory and real estate management further support its elevated valuation. Image Source: Zacks Investment Research In contrast, peers such as Duluth Holdings DLTH, Guess? Inc. GES and Gildan Activewear GIL trade at lower forward P/E ratios of 7.59x, 7.59x and 13.21x, respectively. These lower valuations of Duluth Holdings, Guess? and Gildan Activewear are a reflection of the company-specific challenges, such as inconsistent earnings performance, lower pricing power, greater exposure to price-sensitive customers or weaker brand Ralph Lauren, which has successfully leaned into premiumization and digital transformation, these peers operate with more constrained growth profiles, narrower international footprints and less diversified product offerings.A key factor behind Ralph Lauren's elevated P/E ratio is its impressive stock performance. In the past year, shares of the company have climbed 55.5%, significantly outperforming the industry, which declined by 13.5%. It has also outperformed the broader sector and the S&P 500 index, which posted growth of 19.8% and 10.8%, respectively. Image Source: Zacks Investment Research RL's stock performance stands out among apparel stocks. In the past year, Duluth Holdings and Guess? have declined 48.3% and 41%, respectively, whereas Gildan Activewear gained 27.6%. Ralph Lauren continues to demonstrate exceptional strength, closing fiscal 2025 with robust performance that exceeded expectations across all regions and channels. The company's global desirability remains its most powerful asset, underpinned by its iconic brand identity and elevated product portfolio. With a lifestyle approach that resonates across generations and geographies, Ralph Lauren has effectively executed its key city ecosystem model, combining physical stores, digital flagships and selective wholesale Lauren's digital transformation continues to be a significant growth lever, with direct-to-consumer (DTC) channels now making up two-thirds of the business. Digital comps grew in the double digits globally in the fourth quarter, supported by targeted marketing activations, improved site experiences and increasing traction on social media platforms. The company added nearly 6 million new DTC consumers in fiscal 2025, with growth led by younger, female and less price-sensitive like predictive buying and AI-enabled planning are improving inventory efficiency and responsiveness. Across platforms owned, wholesale and social, Ralph Lauren is not just keeping pace with digital trends but actively shaping them, creating immersive, emotionally resonant brand experiences that fuel both consumer loyalty and higher-margin company's multi-year strategy, centered on three pillars — brand elevation, driving the core while expanding for more and winning in key cities — has delivered tangible results. Ralph Lauren's core products, which represent about 70% of the business, saw low double-digit growth in the fourth quarter, led by strong demand for knitwear, outerwear and company's strategic pricing actions, product elevation and discount discipline helped drive average unit retail growth while reinforcing luxury and value perceptions. Ralph Lauren is also making smart investments in prime real estate to future-proof its presence, such as acquiring its Polo flagship in SoHo, aligning with a broader DTC-led growth strategy that continues to strengthen profitability. Reflecting positive sentiment around Ralph Lauren, the Zacks Consensus Estimate for earnings per share has seen upward revisions. In the past 30 days, the consensus estimate has risen 6 cents to $13.69 and 7 cents to $15.03 for 2026 and 2027, respectively. These estimates indicate expected year-over-year growth rates of around 11% and 9.8% for 2026 and 2027, respectively. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Image Source: Zacks Investment Research Despite its strong performance, Ralph Lauren faces mounting challenges from an increasingly volatile global macroeconomic environment. Consumer sentiment remains pressured across key markets such as the United States, the U.K. and China due to persistent inflation, geopolitical tensions and uncertainty around trade policy, particularly new cost inflation is an evolving concern, with the company expecting gross margin pressures to intensify in the second half of fiscal 2026. Ralph Lauren has proactively implemented selective pricing actions and diversified its supply chain, ensuring no single country exceeds 20% of production tariffs. However, tariffs are expected to pose risks to its cost structure and pricing power in the near term. Ralph Lauren remains a compelling investment, supported by its strong brand positioning, lifestyle-driven product strategy and expanding global footprint. The company's focus on premiumization, digital transformation and disciplined execution has fueled consistent performance across regions and channels. Its success in driving brand desirability, coupled with ongoing investments in high-growth categories and key markets, underpins long-term growth the stock's premium valuation reflects high investor expectations, which could be tested amid ongoing macroeconomic uncertainty, shifting consumer sentiment and evolving tariff risks. Current investors should retain their positions in RL stock, while new investors might wait for a more favorable entry point. Ralph Lauren currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ralph Lauren Corporation (RL) : Free Stock Analysis Report Guess?, Inc. (GES) : Free Stock Analysis Report Gildan Activewear, Inc. (GIL) : Free Stock Analysis Report Duluth Holdings Inc. (DLTH) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
19-06-2025
- Business
- Yahoo
Duluth Holdings (DLTH) Shows Fast-paced Momentum But Is Still a Bargain Stock
Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time. Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, investors find themselves loaded up on expensive shares with limited to no upside or even a downside. So, going all-in on momentum could be risky at times. It could be safer to invest in bargain stocks that have been witnessing price momentum recently. While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which pays close attention to trends in a stock's price or earnings, is pretty useful in identifying great momentum stocks, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced. Duluth Holdings (DLTH) is one of the several great candidates that made it through the screen. While there are numerous reasons why this stock is a great choice, here are the most vital ones: Investors' growing interest in a stock is reflected in its recent price increase. A price change of 8.2% over the past four weeks positions the stock of this clothing and tools supplier well in this regard. While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. DLTH meets this criterion too, as the stock gained 7% over the past 12 weeks. Moreover, the momentum for DLTH is fast paced, as the stock currently has a beta of 1.3. This indicates that the stock moves 30% higher than the market in either direction. Given this price performance, it is no surprise that DLTH has a Momentum Score of A, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success. In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped DLTH earn a Zacks Rank #2 (Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That's because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, DLTH is trading at a reasonable valuation. In terms of Price-to-Sales ratio, which is considered as one of the best valuation metrics, the stock looks quite cheap now. DLTH is currently trading at 0.12 times its sales. In other words, investors need to pay only 12 cents for each dollar of sales. So, DLTH appears to have plenty of room to run, and that too at a fast pace. In addition to DLTH, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. You may consider investing in them and start looking for the newest stocks that fit these criteria. This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market. However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies. Click here to sign up for a free trial to the Research Wizard today. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Duluth Holdings Inc. (DLTH) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-06-2025
- Business
- Yahoo
Duluth Holdings (DLTH) Upgraded to Buy: Here's What You Should Know
Duluth Holdings (DLTH) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices. The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system. Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time. As such, the Zacks rating upgrade for Duluth Holdings is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price. The change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock. For Duluth Holdings, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher. As empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions. The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> . For the fiscal year ending January 2026, this clothing and tools supplier is expected to earn -$0.58 per share, which is unchanged compared with the year-ago reported number. Analysts have been steadily raising their estimates for Duluth Holdings. Over the past three months, the Zacks Consensus Estimate for the company has increased 21.6%. Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term. You can learn more about the Zacks Rank here >>> The upgrade of Duluth Holdings to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Duluth Holdings Inc. (DLTH) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Globe and Mail
10-06-2025
- Business
- Globe and Mail
Duluth Holdings Inc. Reduces Workforce by 3%
MOUNT HOREB, Wis., June 10, 2025 (GLOBE NEWSWIRE) -- Duluth Holdings Inc. (dba, Duluth Trading Company) ('Duluth Trading' or the 'Company') (NASDAQ: DLTH), a lifestyle brand of men's and women's workwear, casual wear, outdoor apparel, and accessories, announced that as part of its expense savings initiatives to rightsize the business, the Company reduced its workforce by 51 employees, or 3% of its total workforce, on June 4, 2025. The expenses related to the workforce reduction were less than $1 million. The Company's expense savings actions are designed to reduce complexity in the business and increase the Company's focus on brand awareness, solution-based product and product innovations, and exceptional customer service. About Duluth Trading Duluth Trading is a lifestyle brand for the Modern, Self-Reliant American. Based in Mount Horeb, Wisconsin, we offer high quality, solution-based casual wear, workwear, and accessories for men and women who lead a hands-on lifestyle and who value a job well-done. We provide our customers an engaging and entertaining experience. Our marketing incorporates humor and storytelling that conveys the uniqueness of our products in a distinctive, fun way, and are available through our content-rich website, catalogs, and 'store like no other' retail locations. We are committed to outstanding customer service backed by our 'No Bull Guarantee' - if it's not right, we'll fix it. Visit our website at Forward-Looking Statements This press release includes 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are not historical facts, and are based upon Duluth Trading's current expectations, beliefs, estimates, and projections, and various assumptions, many of which, by their nature, are inherently uncertain and beyond Duluth Trading's control. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the forward-looking statements. Forward-looking statements speak only as of the date the statements are made. Duluth Trading assumes no obligation to update forward-looking statements to reflect actual results, subsequent events or circumstances or other changes affecting forward-looking information except to the extent required by applicable securities laws.
Yahoo
05-06-2025
- Business
- Yahoo
Duluth Holdings (DLTH) Reports Q1 Loss, Misses Revenue Estimates
Duluth Holdings (DLTH) came out with a quarterly loss of $0.32 per share versus the Zacks Consensus Estimate of a loss of $0.30. This compares to loss of $0.24 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -6.67%. A quarter ago, it was expected that this clothing and tools supplier would post earnings of $0.28 per share when it actually produced a loss of $0.04, delivering a surprise of -114.29%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Duluth Holdings , which belongs to the Zacks Textile - Apparel industry, posted revenues of $102.7 million for the quarter ended April 2025, missing the Zacks Consensus Estimate by 4.11%. This compares to year-ago revenues of $116.68 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Duluth Holdings shares have lost about 27.5% since the beginning of the year versus the S&P 500's gain of 1.5%. While Duluth Holdings has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Duluth Holdings: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.14 on $125 million in revenues for the coming quarter and -$0.67 on $578.9 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Textile - Apparel is currently in the bottom 28% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Vince Holding Corp. (VNCE), is yet to report results for the quarter ended April 2025. This company is expected to post quarterly loss of $0.48 per share in its upcoming report, which represents a year-over-year change of -84.6%. The consensus EPS estimate for the quarter has been revised 17.5% lower over the last 30 days to the current level. Vince Holding Corp.'s revenues are expected to be $56.12 million, down 5.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Duluth Holdings Inc. (DLTH) : Free Stock Analysis Report Vince Holding Corp. (VNCE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
