Jim Cramer named Ralph Lauren (RL) stock his favorite apparel pick ahead of its earnings report on Thursday, citing a 380% rally since late 2022 that has outpaced the S&P 500’s roughly 110% gain.

Ralph Lauren holders face the print with that gain intact, while Tapestry (TPR), parent of Coach, fell more than 20% after its August report on guidance Cramer called merely in line. It reports the same morning.

Can Ralph Lauren Stock Keep Beating a 380% Rally?

Cramer said Ralph Lauren’s sales compounded at 13% a year over the past five fiscal years, while adjusted earnings per share (EPS) compounded at 57%.

He credits a pivot to direct-to-consumer (DTC) sales and fewer wholesale outlets that he says watered down the brand, a shift he links to wider gross margins.

The company reported adjusted EPS of $4.59 and revenue of $1.96 billion for its fiscal first quarter on Aug. 6, beating Wall Street estimates on both, and raised its full-year outlook.

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

Analysts forecast adjusted EPS of about $4.22 for the quarter, up from $3.79 a year earlier.

Cramer said the shares slid in late August and September, when rising oil prices hit consumer names broadly. A Walmart sales miss in August had already raised questions about US consumer health.

BofA Securities analyst Kendall Toscano expects a beat-and-raise quarter, meaning earnings above forecasts and a higher outlook. He keeps a $450 price target, arguing higher-income shoppers remain resilient.

Can Coach Offset Kate Spade’s Drag?

Analysts expect Tapestry to report adjusted EPS near $1.55. Cramer likes the Coach story, citing its accessible luxury niche and appeal to younger women.

Coach revenue rose 15% in the fiscal fourth quarter, while Kate Spade fell 7%, with management acknowledging that the Kate Spade turnaround is running slower than planned.

Thursday’s reports will test whether premium accessories and apparel brands that raised prices, as Coach did on handbags, can keep demand if shoppers tighten. Cramer listed consumer spending among five themes in his 2026 stock picks.

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