BUSINESS
Ralph Lauren: A Fashion Brand Ready to Face Trade Storms
USAWed Mar 19 2025
Ralph Lauren's stock is getting a boost from Goldman Sachs. They've upgraded it from neutral to buy. This means they think it's a good time to invest. The bank's analyst, Brooke Roach, thinks the company is ready for any short-term problems from tariffs. She also thinks the stock has dropped too much and is now a good deal. This drop happened because of worries about the economy and how it might affect fashion sales.
The U. S. has put tariffs on goods from Mexico, Canada, and China. These countries have hit back with their own tariffs on U. S. products. This trade fight is making investors nervous. But Roach thinks Ralph Lauren is in a better position than other fashion brands. She believes the company has less risk from tariffs, slow department stores, and lower-income shoppers.
Ralph Lauren's stock has fallen by more than 18% this month. Before this drop, the stock was too expensive, according to Roach. Now, she sees a chance to buy. She thinks brands that are doing well, like Ralph Lauren, will keep doing well even if the economy gets worse. Most other analysts agree. They think Ralph Lauren's stock will go up by about 33%.
The fashion industry is always changing. But Ralph Lauren has been around for a long time. It's known for its classic styles and quality. The company has also been working on new ways to reach customers, like improving its online sales. This could help it keep growing, even if the economy gets tough.
Investors should think about more than just the stock price. They should look at the company's plans for the future. Ralph Lauren has been focusing on its core brands and cutting costs. This could help it stay strong in a tough economy. But remember, investing always comes with risks. It's important to do your own research and think carefully before making any decisions.
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questions
What are the potential risks associated with investing in a company based on its limited exposure to tariffs?
How does Ralph Lauren's limited exposure to tariffs compare to other fashion brands in the same sector?
If Ralph Lauren can weather tariffs, why can't it just sell raincoats in the U.S. instead of luxury fashion?