Ralph Lauren Corp (RL)
NYSE:RL
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Ralph Lauren
(NYSE:RL)
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Rating:69Neutral
Price Target:
$427.00
▲(10.37% Upside)
Action:DowngradedDate:02/06/26
The score is driven primarily by solid fundamentals and a constructive earnings outlook (raised FY2026 guidance and strong recent operating performance). The main constraint is weak near-term technical momentum (below key moving averages with negative MACD and low RSI/Stoch). Valuation is reasonable but not a clear bargain, and leverage/cash-conversion consistency remain secondary watch items.
Positive Factors
DTC & Digital Customer Growth
Adding 2.1 million DTC customers and mid‑teens digital growth signals durable expansion of owned customer relationships and higher lifetime value. A growing DTC base strengthens omnichannel control, reduces wholesale dependence, supports pricing discipline and recurring full‑price sales over multiple quarters.
Negative Factors
Tariff Cost Pressure
Sustained tariff pass‑through into COGS is a structural headwind that can erode gross margins unless offset by higher prices, mix shifts or sourcing changes. Persistent tariffs raise the risk that margin expansion targets slip and require longer‑term operational or pricing responses.
Read all positive and negative factors
Positive Factors
Negative Factors
DTC & Digital Customer Growth
Adding 2.1 million DTC customers and mid‑teens digital growth signals durable expansion of owned customer relationships and higher lifetime value. A growing DTC base strengthens omnichannel control, reduces wholesale dependence, supports pricing discipline and recurring full‑price sales over multiple quarters.
Read all positive factors
Ralph Lauren (RL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$22.48B
Dividend Yield0.93%
Average Volume (3M)592.98K
Price to Earnings (P/E)15.1
Beta (1Y)1.08
Revenue Growth12.71%
EPS Growth33.95%
CountryUS
Employees23,400
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)6.22
Shares Outstanding38,655,136
10 Day Avg. Volume562,191
30 Day Avg. Volume592,977
Financial Highlights & Ratios
PEG Ratio0.92
Price to Book (P/B)5.22
Price to Sales (P/S)1.91
P/FCF Ratio13.25
Enterprise Value/Market Cap1.09
Enterprise Value/Revenue3.12
Enterprise Value/Gross Profit4.48
Enterprise Value/Ebitda17.33
Forecast
1Y Price Target
$429.22Price Target Upside10.94% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)18.01
Revenue Forecast (FY)$8.44B
Ralph Lauren Business Overview & Revenue Model
Company Description
Ralph Lauren Corporation designs, markets, and distributes lifestyle products in North America, Europe, Asia, and internationally. The company offers apparel, including a range of men's, women's, and children's clothing; footwear and accessories, ...
How the Company Makes Money
Ralph Lauren primarily makes money by selling branded products through two main channels: (1) Direct-to-consumer (DTC) and (2) Wholesale. In DTC, the company generates revenue from sales in company-operated retail stores (including full-price stor...
Ralph Lauren Key Performance Indicators (KPIs)
Any
Net Revenue by Geography
Shows the distribution of net revenue across various regions, providing insight into Ralph Lauren's market strength and potential growth areas globally.
Shows the distribution of net revenue across various regions, providing insight into Ralph Lauren's market strength and potential growth areas globally.
Data provided by:
The Fly
The FlyRalph Lauren Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:May 21, 2026
Earnings Call Sentiment Positive
The call conveyed strong, broad-based operating momentum: revenue growth exceeded expectations (10% in Q3), margins expanded significantly (gross margin +140 bps; operating margin +200 bps), AUR accelerated (18%), and the company raised FY26 guidance while generating robust cash flow and adding millions of new customers. Near-term headwinds—primarily tariff-related cost pressure, Q4 transitional timing shifts, strategic reductions in off-price wholesale, and higher marketing spend—are expected to weigh on margins in the immediate term. However, management framed these as tactical choices in support of a multi-year brand elevation plan and expects margin expansion across the plan horizon.Positive Updates
Total Company Revenue Growth Above Expectations
Third quarter constant-currency revenue grew 10%, above the mid-single-digit outlook, driven by broad-based performance across geographies, channels, and product categories.
Negative Updates
Tariff-Related Cost Pressure and Near-Term Margin Headwinds
Higher U.S. tariffs are flowing through cost of goods sold and are expected to be a meaningful gross margin headwind through the first half of next fiscal year; Q4 gross and operating margins are expected to decline with Q4 operating margin guided to contract ~80–120 basis points.
Read all updates
Q3-2026 Updates
Positive
Negative
Total Company Revenue Growth Above Expectations
Third quarter constant-currency revenue grew 10%, above the mid-single-digit outlook, driven by broad-based performance across geographies, channels, and product categories.
Read all positive updates
Company Guidance
Ralph Lauren raised its fiscal 2026 outlook and provided detailed quarterly and full‑year guidance: it now expects constant‑currency revenue growth of high‑single to low‑double digits (up from prior 5–7%), with a foreign‑currency tailwind of ~200–250 bps for the year; by region, North America is expected to grow at the high end of mid‑single digits, Europe at the high end of mid‑single digits, and Asia mid‑teens (up from prior high‑single to low‑double digits). Full‑year operating margin is now expected to expand ~100–140 bps (vs. prior 60–80 bps) and gross margin to expand ~40–80 bps, with FX benefiting gross and operating margins by ~20 and ~50 bps respectively; Q4 constant‑currency revenues are guided to about mid‑single‑digit growth (FX +200–300 bps), Q4 AUR growth is expected high‑single to low‑double digits, but Q4 gross and operating margins are expected to decline—with Q4 operating margin contracting ~80–120 bps and operating expenses roughly flat as a percent of sales—and FX is expected to benefit Q4 gross/op margins by ~50 and ~100 bps. Tax rate for both Q4 and the full year is guided to 19–21%, CapEx is expected to be ~4–5% of sales, tariffs are called out as a meaningful gross‑margin headwind through the first half of next fiscal year (with mitigation over time), and the company reiterated a roughly 175‑bp cotton tailwind across FY25–26.Ralph Lauren Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
70
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.83B | 7.08B | 6.63B | 6.44B | 6.22B | 4.40B |
| Gross Profit | 5.46B | 4.85B | 4.43B | 4.17B | 4.15B | 2.86B |
| EBITDA | 1.41B | 1.21B | 1.05B | 952.80M | 1.04B | 221.30M |
| Net Income | 918.50M | 742.90M | 646.30M | 522.70M | 600.10M | -121.10M |
Balance Sheet | ||||||
| Total Assets | 7.81B | 7.05B | 6.60B | 6.79B | 7.72B | 7.89B |
| Cash, Cash Equivalents and Short-Term Investments | 2.25B | 2.08B | 1.78B | 1.57B | 2.60B | 2.78B |
| Total Debt | 4.01B | 2.67B | 3.69B | 4.02B | 3.39B | 3.62B |
| Total Liabilities | 4.93B | 4.46B | 4.15B | 4.36B | 5.19B | 5.28B |
| Stockholders Equity | 2.89B | 2.59B | 2.45B | 2.43B | 2.54B | 2.60B |
Cash Flow | ||||||
| Free Cash Flow | 694.50M | 1.02B | 904.90M | 193.50M | 549.00M | 273.10M |
| Operating Cash Flow | 1.13B | 1.24B | 1.07B | 411.00M | 715.90M | 380.90M |
| Investing Cash Flow | -442.00M | -264.10M | -256.80M | 471.50M | -717.90M | 195.00M |
| Financing Cash Flow | -691.30M | -704.00M | -665.60M | -1.21B | -665.70M | 356.80M |
Ralph Lauren Technical Analysis
Positive
386.88
Price Trends
355.20
Positive
357.64
Positive
331.95
Positive
Market Momentum
8.37
Negative
63.46
Neutral
71.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RL, the sentiment is Positive. The current price of 386.88 is above the 20-day moving average (MA) of 355.57, above the 50-day MA of 355.20, and above the 200-day MA of 331.95, indicating a bullish trend. The MACD of 8.37 indicates Negative momentum. The RSI at 63.46 is Neutral, neither overbought nor oversold. The STOCH value of 71.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RL.
Ralph Lauren Risk Analysis
Ralph Lauren disclosed 30 risk factors in its most recent earnings report. Ralph Lauren reported the most risks in the "Macro & Political" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ralph Lauren Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $8.58B | 11.94 | 28.33% | 2.58% | 2.61% | 30.39% | |
69 Neutral | $22.48B | 15.13 | 34.74% | 0.93% | 12.71% | 33.95% | |
69 Neutral | $4.02B | 15.01 | 45.05% | 3.36% | 20.87% | -7.43% | |
62 Neutral | $5.06B | 23.92 | 10.25% | 1.33% | 2.91% | 29.96% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $4.29B | 117.41 | 0.53% | 0.22% | 3.44% | -96.10% | |
53 Neutral | $7.74B | 6.01 | 14.79% | 1.95% | -3.12% | ― |
* Consumer Cyclical Sector Average
RL
Ralph Lauren
370.38
151.00
68.83%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.