Top 12 Luxury Clothing Stocks to Buy According to Hedge Funds

7. Ralph Lauren Corporation (NYSE:RL)

Number of Hedge Fund Holders: 30

Ralph Lauren (NYSE:RL) is a luxury fashion retailer that specializes in designing, marketing, and selling luxury lifestyle products, including apparel, footwear, accessories, fragrances, home, and hospitality. Its brand portfolio spans Ralph Lauren, Polo Ralph Lauren, Ralph Lauren Collection, Lauren Ralph Lauren, Ralph Lauren Purple Label, Double RL, and others. Apart from manufacturing luxury items for men, women, and children, the company’s hospitality segment includes restaurants like New York City’s The Polo Bar and Chicago’s RL Restaurant.

The company holds a competitive market advantage due to its ability to transcend industry cycles. While luxury retailers are typically driven by fashion trends, Ralph Lauren (NYSE:RL) focuses on the basics, which is why it has a tendency to remain relevant to its consumers even amidst changing market dynamics. The company reported revenue growth of 6% in fiscal Q2 2025, exceeding its outlook due to its direct-to-consumer channels. The growth was further attributed to continued progress across three of its strategic pillars, which included winning in the consumer ecosystem, energizing and elevating its lifestyle brand, and promoting its Drive the Core and Expand for More strategy.

Growth in digital channels was another force behind Ralph Lauren’s (NYSE:RL) performance. The company is continuing to grow its social media standing, surpassing 62 million followers. This growth was led by Instagram, Line, Threads, TikTok, and Douyin. These trends reflect the company’s increasing popularity.

Ralph Lauren (NYSE:RL) has updated its fiscal 2025 outlook, and is now expecting constant currency revenues to grow by 3% to 4%, up from the previous forecast of 2% to 3%. Strong growth in direct-to-consumer (DTC) channels and international markets are expected to drive this increase. The company ranks seventh on our list of the top 12 luxury clothing stocks to buy according to hedge funds.