Investment Thesis
The share price of Ralph Lauren (RL) has rebounded 40 percent in the past one year. This is a commendable effort considering that the broader retail market has only achieved a 6 percent gain (based on the SPDR S&P Retail ETF (XRT)). If calculated from the bottom in May 2017, the share price jump is an even more impressive 63 percent.
RL data by YChartsIn November last year, I reviewed the financial updates of Ralph Lauren and read the earnings call transcripts of the past few quarters. I concluded that the executives have delivered on their action plans and their guidance have credibility. As a result, I decided to hold on to my Ralph Lauren shares, which were trading at $90.67. I was prepared for the bumpy ride upwards.
