Jim Cramer’s Lightning Round: 7 Stocks Under the Spotlight

4. Ralph Lauren Corporation (NYSE:RL)

Number of Hedge Fund Holders: 30

Cramer likes Ralph Lauren Corporation (NYSE:RL) and called it a “winner”.

“Well, Ralph Lauren, first of all, great American, won the Medal of Freedom. But I’ll tell you what’s the power behind it, they’ve got tremendous design. It’s time-honored… You’ve got a winner there.”

Ralph Lauren (NYSE:RL) is a prominent designer, marketer, and distributor of a wide range of lifestyle products, including apparel, home goods, and accessories. The company operates with three key strategic pillars: first, to elevate and energize its lifestyle brand; second, to drive core growth while expanding into new areas; and third, to win in the consumer ecosystem.

Despite a challenging environment, it has performed well in key international markets, especially in Europe, and has seen strong domestic demand, particularly through its full-price stores in North America. The company is set to open 15 to 20 new stores in North America.

Ralph Lauren (NYSE:RL) has updated its fiscal 2025 outlook, now expecting constant currency revenues to grow by 3% to 4%, up from the previous forecast of 2% to 3%. This increase is driven by stronger growth in direct-to-consumer (DTC) channels and international markets. Gross margins are also expected to increase by 80 to 120 basis points, driven by favorable shifts in the company’s mix toward international and full-price DTC businesses, along with continued growth in average unit retail (AUR) and lower cotton costs.