Wall Street financial giant Jefferies has issued a research report stating that Ralph Lauren (RL.US) will benefit from the publicity surrounding American pop superstar Taylor Swift's engagement to Travis Kelce and their upcoming wedding. The enormous pop music and fan economy traffic generated by Taylor Swift's engagement photos is expected to bring exceptionally strong sales growth to Ralph Lauren's performance.
Pop superstar Taylor Swift announced her engagement to Kansas City Chiefs star Travis Kelce on social media Tuesday, news that quickly triggered a ripple effect across capital markets. Swift shared engagement ring photos on social media, with the ring identified by jewelry industry insiders as a "cushion cut." Within hours of posting, the announcement garnered over 16 million likes and 600,000 shares, instantly becoming a social media sensation.
Following the news, shares of American publicly-traded jewelry retailer Signet Jewelers (SIG.US) surged rapidly. Meanwhile, the Ralph Lauren clothing worn by Swift and Kelce in their engagement photos also sparked market discussion.
Both Swift and Kelce wore Ralph Lauren outfits in their engagement photos that went viral on American social media Tuesday.
"For a company that claims to be not just in the apparel business, but in the business of dreams for style enthusiasts, we believe this outcome represents mission accomplished and will support Ralph Lauren's brand strength and potential for continued performance growth momentum going forward," said Jefferies analyst Ashley Helgans in her latest report.
"We view this as an encouraging catalyst for the brand, especially ahead of Swift's new album release in early October and Kelce's upcoming new season. Google Trends data from the past several hours shows consumer search interest in 'Ralph Lauren dresses' and 'Taylor Swift Ralph Lauren' has spiked significantly," Helgans added.
Taylor Swift's pop music influence has previously boosted Ralph Lauren's performance metrics and has been mentioned by management in multiple earnings calls as a factor driving increased consumer interest in purchasing products from the apparel giant.
Jefferies noted that Ralph Lauren achieved a series of strong marketing breakthroughs this summer, including the Oak Bluffs marketing campaign, the popular Polo Bear short film, Wimbledon tennis championship sponsorship, and the ongoing US Open sponsorship.
Jefferies analyst team maintains a "Buy" rating on Ralph Lauren stock. Ralph Lauren shares have gained 30% year-to-date, significantly outperforming the S&P 500 index, with the company's stock price approaching increasingly closer to all-time highs.
Ralph Lauren is a global fashion and lifestyle apparel group responsible for designing, marketing and distributing premium/luxury/accessible lifestyle products across five major categories: apparel, footwear and accessories, home, fragrance, and dining/hospitality lifestyle businesses. The company emphasizes "inspiring dreams of a better life through authentic and timeless style."
Ralph Lauren's clothing and brand lines cover a broad range, including Ralph Lauren Luxury (luxury line), Polo Ralph Lauren (core lifestyle line), and Lauren Ralph Lauren (more accessible ready-to-wear/lifestyle line), spanning menswear/womenswear/childrenswear/athletic performance and luxury to premium-accessible price segments across all demographic groups.