Evercore Names New Top Pick: This Fashion Stock Joins Top 5 Outperformers

Six companies, including Aramark, Kraft Heinz, and Ralph Lauren, sued UnitedHealth Group, alleging breaches of fiduciary duties in handling employee health plans. The lawsuit claims UnitedHealth approved inflated claims, engaged in self-dealing, and withheld data. The plaintiffs seek data access, reimbursement, and damages. UnitedHealth disputes the allegations. Filed in the U.S. District Court for the Eastern District of Texas.

Jefferies updated fashion sector rankings, naming Ralph Lauren (RL) its top pick with a $450 price target, citing strong U.S. and Asia sales trends. It raised RL's revenue and EPS estimates. Deckers (DECK) was rated Buy with a reduced $120 target, noting mixed HOKA data and potential tariff refunds. Jefferies adjusted forecasts for mixed consumer demand ahead of earnings season.

Ralph Lauren (RL) is outperforming the struggling retail sector due to resilient high-income customers. Bank of America analyst Kendall Toscano maintained a Buy rating and $450 price target, citing steady demand and strong growth in Asia. RL beat Q1 earnings expectations by 7% and is expected to report another strong quarter in November. Shipping costs, up 8%, are less impactful on RL due to fixed pricing agreements.

Figs (FIGS) reported Q2 revenue of $196.6M, up 28.8% YoY, beating estimates. Oxford Industries (OXM) reported $394.4M, down 2.2% YoY, missing EPS guidance. VF Corp (VFC) reported $1.67B, up 1.3% YoY, beating revenue estimates but missing EPS. Under Armour (UAA) reported $1.1B, down 3.2% YoY, missing revenue and full-year EPS guidance.

Ralph Lauren opened New York Fashion Week with a spring 2027 collection, featuring classic colors and contrasting styles. The brand reported a 14% sales increase to $1.96 billion for the quarter ending June 2026. Coach, another accessible luxury brand, saw 15% growth to $1.64 billion. Both brands are outperforming in a slowing luxury market, according to the company.

Ralph Lauren's latest fashion show featured a mix of high-end and casual wear, appealing to a broad audience, including Gen Z. The brand reported record annual revenue of $8.1 billion, up 15% year-over-year. Lauren's designs blend American cultural elements, maintaining aspirational appeal while driving sales across price points.