Ralph Lauren (RL) AI Stock Analysis

• Market Cap: $19.20B
• Dividend Yield: 1.1%
• Average Volume (3M): 535.50K
• Price to Earnings (P/E): 25.3
• Beta (1Y): 1.18
• Revenue Growth: 12.32%
• EPS Growth: 29.40%
• Country: US
• Employees: 14,800
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 3.79
• Shares Outstanding: 38,693,005
• 10 Day Avg. Volume: 616,190
• 30 Day Avg. Volume: 535,500
• PEG Ratio: 0.95
• Price to Book (P/B): 5.34
• Price to Sales (P/S): 1.95
• P/FCF Ratio: 13.56
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $369.08
• Price Target Upside: 13.68% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $357.00 ▲(9.95% Upside)

Ralph Lauren's strong financial performance and positive earnings call are the primary drivers of its stock score. The company's robust revenue growth and raised guidance reflect confidence in its strategic direction. However, technical indicators suggest potential momentum weakness, and valuation metrics indicate moderate pricing relative to peers.

Positive Factors

Revenue Growth

Strong revenue growth across multiple channels indicates robust demand and effective sales strategies, supporting long-term business expansion.

Market Expansion

Significant growth in China highlights successful market penetration and potential for continued expansion in high-growth regions.

Margin Improvement

Improving margins reflect operational efficiency and pricing power, enhancing profitability and financial resilience over time.

Negative Factors

Cash Flow Concerns

Declining free cash flow growth could limit investment capacity and financial flexibility, posing risks to long-term strategic initiatives.

North America Outlook

Macroeconomic challenges in North America may impact consumer spending, affecting sales and growth prospects in a key market.

Tariff Impact

Increasing tariffs could pressure margins and cost structures, challenging profitability and competitive positioning in affected markets.

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, which comprise casual shoes, dress shoes, boots, sneakers, sandals, eyewear, watches, fashion and fine jewelry, scarves, hats, gloves, and umbrellas, as well as leather goods, such as handbags, luggage, small leather goods, and belts; home products consisting of bed and bath lines, furniture, fabric and wallcoverings, lighting, tabletop, kitchen linens, floor coverings, and giftware; and fragrances. It sells apparel and accessories under the Ralph Lauren Collection, Ralph Lauren Purple Label, Polo Ralph Lauren, Double RL, Lauren Ralph Lauren, Polo Golf Ralph Lauren, Ralph Lauren Golf, RLX Ralph Lauren, Polo Ralph Lauren Children, and Chaps brands; women's fragrances under the Ralph Lauren Collection, Woman by Ralph Lauren, Romance Collection, and Ralph Collection brand names; and men's fragrances under the Polo Blue, Ralph's Club, Safari, Purple Label, Polo Red, Polo Green, Polo Black, Polo Sport, and Big Pony Men's brand names. The company's restaurant collection includes The Polo Bar in New York City; RL Restaurant in Chicago; Ralph's in Paris; The Bar at Ralph Lauren located in Milan; and Ralph's Coffee concept. It sells its products to department stores, specialty stores, and golf and pro shops, as well as directly to consumers through its retail stores, concession-based shop-within-shops, and its digital commerce sites. The company directly operates 504 retail stores and 684 concession-based shop-within-shops; and operates 175 Ralph Lauren stores, 329 factory stores, and 148 stores and shops through licensing partners. Ralph Lauren Corporation was founded in 1967 and is headquartered in New York, New York.

How the Company Makes Money

Ralph Lauren generates revenue through several key streams. Primarily, the company sells its products through wholesale channels to department stores and specialty retailers, which accounts for a significant portion of its income. Retail sales from its own branded stores and e-commerce platforms also contribute substantially to revenue, allowing the company to engage directly with consumers. Additionally, Ralph Lauren benefits from licensing agreements that allow third-party manufacturers to produce and sell products under the Ralph Lauren brand, providing a steady stream of royalty income. The brand's strong global presence, including a focus on international markets, further enhances its revenue potential. Significant partnerships with retail giants and collaborations with other brands also play a crucial role in expanding its market reach and driving sales.

Ralph Lauren Financial Statement Overview

Summary

Ralph Lauren demonstrates strong financial health with consistent revenue growth and solid profitability margins. The balance sheet reflects a prudent use of leverage, while cash flow metrics suggest some areas for improvement in cash generation.

Income Statement

Ralph Lauren has demonstrated consistent revenue growth, with a TTM revenue growth rate of 2.92%. The company maintains strong profitability metrics, including a gross profit margin of 68.20% and a net profit margin of 10.91% in the TTM period. The EBIT and EBITDA margins are also robust at 14.59% and 17.61%, respectively. These figures indicate effective cost management and operational efficiency.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 1.29, indicating a balanced approach to leveraging. Return on equity is strong at 31.52%, reflecting efficient use of equity to generate profits. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 25.04% in the TTM period, which could be a concern. The operating cash flow to net income ratio is 0.50, suggesting a moderate conversion of income into cash. The free cash flow to net income ratio stands at 67.36%, indicating a reasonable level of cash generation relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.59B	7.08B	6.63B	6.44B	6.22B	4.40B
Gross Profit	3.86B	4.85B	4.43B	4.17B	4.15B	2.86B
EBITDA	1.05B	1.21B	1.05B	952.80M	1.04B	221.30M
Net Income	665.70M	742.90M	646.30M	522.70M	600.10M	-121.10M
Balance Sheet
Total Assets	7.75B	7.05B	6.60B	6.79B	7.72B	7.89B
Cash, Cash Equivalents and Short-Term Investments	2.28B	2.08B	1.78B	1.57B	2.60B	2.78B
Total Debt	3.24B	2.67B	2.68B	2.88B	3.39B	3.62B
Total Liabilities	5.24B	4.46B	4.15B	4.36B	5.19B	5.28B
Stockholders Equity	2.52B	2.59B	2.45B	2.43B	2.54B	2.60B
Cash Flow
Free Cash Flow	721.50M	1.02B	904.90M	193.50M	549.00M	273.10M
Operating Cash Flow	1.01B	1.24B	1.07B	411.00M	715.90M	380.90M
Investing Cash Flow	-335.10M	-264.10M	-256.80M	471.50M	-717.90M	195.00M
Financing Cash Flow	-203.50M	-704.00M	-665.60M	-1.21B	-665.70M	356.80M

Ralph Lauren Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 324.68
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 324.68 is below the 20-day moving average (MA) of 324.82, above the 50-day MA of 317.89, and above the 200-day MA of 273.55, indicating a neutral trend. The MACD of 0.18 indicates Positive momentum. The RSI at 52.99 is Neutral, neither overbought nor oversold. The STOCH value of 37.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RL.

Ralph Lauren Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RL	75 Outperform	$19.20B	25.30	34.01%	1.10%	12.32%	29.40%
ZGN	71 Outperform	$4.12B	24.60	10.58%	1.44%	-1.88%	-5.94%
KTB	68 Neutral	$4.27B	19.78	49.11%	2.45%	9.90%	-12.67%
LEVI	64 Neutral	$7.97B	17.40	25.99%	2.70%	3.20%	200.49%
PVH	64 Neutral	$3.66B	8.52	9.32%	0.19%	-1.14%	-29.30%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
VFC	50 Neutral	$5.77B	65.28	6.39%	2.47%	-4.56%	―

Ralph Lauren Corporate Events

Ralph Lauren Unveils Strategic Growth Plan in NYC

On September 16, 2025, Ralph Lauren Corporation hosted an investor meeting in New York City to present its updated strategic growth plan, ‘Next Great Chapter: Drive,’ aimed at delivering sustainable long-term growth and value creation. The company outlined its three-year financial outlook, expecting revenue to grow at a mid-single-digit compound annual rate and plans to return at least $2 billion in excess free cash flow to shareholders by fiscal 2028. The strategic plan focuses on elevating the lifestyle brand, expanding core products, and winning in key cities, supported by strengthened core capabilities and a robust balance sheet.

The most recent analyst rating on (RL) stock is a Buy with a $350.00 price target. To see the full list of analyst forecasts on Ralph Lauren stock, see the RL Stock Forecast page.

Ralph Lauren Surpasses Expectations, Raises Outlook

Ralph Lauren Corporation, a global leader in luxury lifestyle products, designs, markets, and distributes apparel, footwear, accessories, home, fragrances, and hospitality items, renowned for its timeless style and authenticity. In its first quarter of Fiscal 2026, Ralph Lauren reported a 14% increase in revenue, surpassing expectations, with strong performance across all geographies. The company also raised its full-year outlook, reflecting confidence in its strategic priorities and brand strength. Key financial highlights include a 35% increase in earnings per diluted share, a 13% growth in global direct-to-consumer comparable store sales, and a robust balance sheet with $2.3 billion in cash and short-term investments. The company also returned $300 million to shareholders through dividends and stock repurchases. Looking ahead, Ralph Lauren remains cautious about the global operating environment but is optimistic about its ability to execute long-term strategic priorities, including expanding its consumer base and strengthening key categories.

Ralph Lauren’s Strong Q1 and Cautious Outlook

Ralph Lauren’s recent earnings call painted a picture of robust performance and cautious optimism. The company reported a strong first-quarter performance, surpassing expectations with significant growth in international markets and new customer acquisition. However, there was a note of caution regarding the second half of the year due to potential macroeconomic and tariff-related pressures.