2 Reasons Ralph Lauren Stock Is a No-Brainer Buy for Long-Term Investors
If you go into a high-end mall or department store, you are likely to come across Ralph Lauren (NYSE: RL) products. They aren't cheap, even in the company's discount stores, but that's the point of the brand. However, there are some interesting aspects of the company that change the normal equation of a high-end fashion retailer.
Here's why Ralph Lauren is a long-term buy in an industry that sees brands swing in and out of favor on a regular basis.
When it comes to fashion, most retailers are almost entirely at the whim of fickle consumer tastes. Brands that ride the fashion trends up often wind up left behind when the next trend comes along. It is highly unlikely that a hot brand will remain permanently hot. That's not to suggest that demand will go to zero, but a company that misses a new trend shift will likely be left with inventory that it can't get rid of easily.
Source Fool.com
