Ralph Lauren Stock Hits 52-Week High: Buy, Hold or Book Profits?

Core Viewpoint - Ralph Lauren Corporation (RL) has reached a new 52-week high of $256.71, attracting investor interest amid ongoing strategic initiatives and favorable economic conditions [1] Performance Summary - Over the past six months, Ralph Lauren's stock has increased by 59.2%, outperforming the industry growth of 33.1%, the Consumer Discretionary sector's growth of 18.3%, and the S&P 500 index's growth of 13.5% [2] - Technical indicators show that RL stock is trading above its 50-day and 200-day moving averages, indicating strong upward momentum and price stability [5][6] Strategic Initiatives - The company's "Next Great Chapter: Accelerate Plan" aims to exceed top- and bottom-line targets through a streamlined global structure and advanced technology, focusing on elevating the brand, driving core business, and winning key cities [8] - Ralph Lauren has transitioned the Chaps brand to a licensed business, allowing a focus on core brands, and has implemented strategies for product elevation, targeted promotions, and disciplined inventory management [9] Digital and E-commerce Growth - Significant progress is being made in expanding digital and omnichannel capabilities, with the digital business adding 1.5 million new consumers in the second quarter of fiscal 2025, reflecting a high single-digit year-over-year increase [10] Earnings Estimates - The Zacks Consensus Estimate for RL's earnings per share (EPS) has been revised upward, with current and next fiscal year EPS estimates at $11.75 and $13.13, indicating year-over-year growth of 13.9% and 11.7%, respectively [11]