Ralph Lauren Named Jim Cramer's Top Apparel Stock Ahead of Earnings

Jim Cramer singled out Ralph Lauren (RL) as his top apparel stock ahead of its Thursday earnings, citing a 380% rally since late 2022 that has dwarfed the S&P 500's roughly 110% gain.

Ralph Lauren's shareholders will see if that rally holds when earnings are released, while Tapestry (TPR), Coach's parent, dropped over 20% after an August report that Cramer said contained merely in-line guidance. Tapestry also reports on Thursday.

Will Ralph Lauren's Stock Sustain Its 380% Rally?

In his remarks, Cramer noted that over the past five fiscal years, Ralph Lauren's sales increased at a 13% compounded annual rate, and its adjusted EPS climbed at a 57% rate.

He attributes the wider gross margins to a move toward direct-to-consumer (DTC) sales and fewer wholesale accounts, a shift he said had weakened the brand previously.

On Aug. 6, Ralph Lauren reported adjusted EPS of $4.59 and revenue of $1.96 billion for its fiscal first quarter, topping Wall Street projections on both measures and raising its full-year outlook.

Management guided second-quarter revenue growth of 5% to 6%, excluding currency fluctuations.

Analysts predict adjusted EPS of about $4.22 for the quarter, versus $3.79 a year earlier.

Cramer said the shares fell in late August and September as rising oil prices broadly affected consumer stocks. A sales miss at Walmart in August had already called into question the health of the US consumer.

BofA Securities analyst Kendall Toscano expects a beat-and-raise quarter, where earnings beat forecasts and the outlook gets a lift. He retains a $450 price target, reasoning that higher-income shoppers are holding up well.

Can Coach Overcome Kate Spade's Drag?

Analysts anticipate Tapestry will post adjusted EPS of about $1.55. Cramer likes the Coach narrative, highlighting its accessible luxury position and its attraction for younger women.

Coach sales gained 15% in the fiscal fourth quarter, while Kate Spade decreased 7%, and management acknowledged that the Kate Spade turnaround is unfolding more slowly than intended.

Thursday's results will test whether premium accessories and apparel brands that raised prices, like Coach did on bags, can hold demand if consumers become more cautious. Cramer listed consumer spending as one of five themes in his 2026 stock picks.