economy
Jim Cramer explains why Ralph Lauren remains one of retail's best stocks
CNBC's Cramer said RL's outperformance stems from a strategy centered on elevating the brand, expanding its core business, and winning in key global markets.
TL;DR
- Ralph Lauren's stock has surged approximately 444% since CEO Patrice Louvet took over in July 2017.
- The company's success is driven by three priorities: elevating the brand, expanding its core business, and building deeper consumer relationships.
- Brand elevation includes association with prestigious events, attracting younger consumers through "cinematic storytelling," and refreshing product assortments.
- Broad-based growth is evident with comparable sales rising 9% in North America and 23% in Asia, with significant gains in China.
- Operational discipline is maintained through declining inventories and expanding operating margins, balancing growth with profitability.