Investing.com -- Raymond James upgraded Ralph Lauren to Outperform from Market Perform, citing growing confidence that the apparel maker can exceed fiscal 2027 expectations as improving consumer demand and pricing power bolster its long-term earnings outlook.

The brokerage said its checks ahead of second-quarter earnings point to accelerating website traffic, stronger mobile app engagement and fewer promotions, signaling sustained brand momentum despite broader macroeconomic uncertainty.

The upgrade underscores growing confidence that premium apparel brands with strong pricing power, disciplined promotions and resilient international demand can continue to outperform despite lingering tariff uncertainty and a mixed consumer backdrop. Raymond James expects Ralph Lauren's brand momentum and margin expansion to support earnings growth beyond current market expectations.

It also expects healthy growth in China and Europe, continued expansion in operating margins and resilience in average unit retail prices.

Raymond James assigned the stock a $410 price target, arguing the company deserves a premium valuation due to its execution track record and improving fundamentals. The firm said its positive view is supported by durable pricing, international growth opportunities, margin expansion and confidence in management.

More broadly, Raymond James said consensus revenue estimates for the retail sector have edged higher heading into the earnings season, reflecting optimism about consumer spending following a solid first quarter. However, it cautioned that uncertainty over tariffs and the macroeconomic backdrop remains a key variable for the second half of the year.