Last up this week is Ralph Lauren (RL), the $15 billion apparel and accessory firm. RL owns a large number of sub-brands, most of which capitalize on the designer/CEO's name in them in some form or fashion. That ability to build out individual franchises from a single firm are beneficial because they enable RL to grab at a wider set of markets and across multiple price points. The firm doesn't have to risk devaluing its brand by selling lower-priced clothing -- it just sells them under a more value conscious brand.
Typically, RL's core demographic has been older "mass affluent" consumers whose fashion tastes aren't especially volatile. That exposure is doubly attractive because it gives RL the ability to earn deeper profit margins on every polo shirt and pair of jeans without worrying about falling out of favor next season.73-year-old Ralph Lauren still helms his namesake firm as CEO, bringing the question of succession when the founder ultimately steps down from his daily duties. That said, the brand should be able to maintain its strength even without Lauren himself involved in the day-to-day operation of the firm. With considerable room for international expansion in the firm's lucrative company-owned stores, this Rocket Stock stands to benefit more than most in a stock rally. To see all of this week's Rocket Stocks in action, check out the Rocket Stocks portfolio at Stockpickr.-- Written by Jonas Elmerraji in Baltimore.
Twitter and become a fan on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV