Ralph Lauren (RL) AI Stock Analysis

• Market Cap: $16.15B
• Dividend Yield: 1.23%
• Average Volume (3M): 764.33K
• Price to Earnings (P/E): 23.1
• Beta (1Y): 1.14
• Revenue Growth: 6.75%
• EPS Growth: 19.71%
• Country: US
• Employees: 14,800
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Apparel - Manufacturers
• EPS (TTM): 2.27
• Shares Outstanding: 38,442,530
• 10 Day Avg. Volume: 692,097
• 30 Day Avg. Volume: 764,326
• PEG Ratio: -2.48
• Price to Book (P/B): 3.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 40.82
• Enterprise Value/Market Cap: 0.57
• Enterprise Value/Revenue: 0.34
• Enterprise Value/Gross Profit: 1.90
• Enterprise Value/Ebitda: 2.12
• 1Y Price Target: $310.33
• Price Target Upside: 16.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 76 Outperform
• Price Target: $311.00 ▲(16.39%Upside)

Ralph Lauren's overall score reflects strong financial performance and positive technical indicators. While valuation is on the high side, the company's strategic financial management and international growth prospects provide a solid outlook. Cautious optimism is warranted given macroeconomic challenges.

Positive Factors

Brand Strength

Despite challenging market conditions, RL is seen as a standout in its sector due to its brand momentum and global diversification.

Earnings Performance

RL reported 4Q adjusted EPS of $2.27, which is 13% above the Street expectations.

Stock Buyback and Dividends

RL announced a 10% dividend increase and a $1.5bn increase to its share repurchase program.

Negative Factors

Market Concerns

Management is taking a cautious view on the second half of the year given the potential for weaker demand, particularly in the US.

Valuation Concerns

Valuation has become a bit stretched, indicating potential concerns about overvaluation.

Ralph Lauren Business Overview & Revenue Model

Company Description

Ralph Lauren Corporation is a global leader in the design, marketing, and distribution of premium lifestyle products. The company operates through three major segments: apparel, home, and accessories. Its core offerings include a wide range of men's, women's, and children's clothing, footwear, fragrances, home goods, and accessories. Ralph Lauren's portfolio of brands, including Polo Ralph Lauren, Ralph Lauren Collection, and Lauren Ralph Lauren, are emblematic of American style and luxury, catering to a broad demographic of consumers worldwide.

How the Company Makes Money

Ralph Lauren generates revenue primarily through the sale of its products across wholesale, retail, and licensing channels. The wholesale segment involves selling apparel and related products to department stores, specialty retailers, and international distributors. The retail segment encompasses company-operated stores, including flagship stores, factory outlets, and e-commerce platforms, providing direct access to consumers. Licensing agreements also contribute significantly to Ralph Lauren's revenue, allowing third parties to manufacture and distribute products under its brand names, such as eyewear and fragrances. Key factors contributing to its earnings include brand strength, global distribution networks, and strategic partnerships with high-profile retailers and digital platforms.

Ralph Lauren Financial Statement Overview

Summary

Ralph Lauren demonstrates a robust financial profile characterized by strong revenue growth, efficient operations, and effective cash flow management. The balance sheet shows moderate leverage, but profitability and cash generation capabilities offset potential risks.

Income Statement

Ralph Lauren has shown consistent revenue growth, with a notable increase of 6.75% from 2024 to 2025. The gross profit margin is strong at approximately 68.5%, and the net profit margin has improved to 10.5%. EBIT and EBITDA margins also reflect healthy operational efficiency, indicating robust profitability. The upward trend in revenue and profit margins highlights the company's strength in capitalizing on market opportunities and managing costs effectively.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.02, indicating moderate leverage. The equity ratio is fairly strong at 36.7%, suggesting a solid asset base funded by equity. Return on equity has improved to 28.7%, showcasing effective use of shareholder capital. However, the decrease in cash reserves may pose a risk if the company's cash flow is not managed efficiently.

Cash Flow

Ralph Lauren's cash flow statement shows a healthy operating cash flow to net income ratio of 1.66, indicating strong cash-generating ability from operations. Free cash flow has grown by 12.6% year-over-year, reflecting effective capital expenditures and operational efficiency. The company's ability to generate cash from operations and maintain sufficient free cash flow boosts its financial flexibility.

Breakdown
Mar 2025	Mar 2024	Jun 2023	Jun 2022	Mar 2021
Income Statement		Total Revenue
7.08B	6.63B	6.44B	6.22B	4.40B
	Gross Profit
4.85B	4.43B	4.17B	4.15B	2.86B
	EBIT
932.10M	756.40M	704.20M	798.40M	240.20M
	EBITDA
1.23B	1.06B	801.70M	1.04B	232.60M
	Net Income Common Stockholders
742.90M	646.30M	522.70M	600.10M	-121.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.08B	1.78B	1.57B	2.60B	2.78B
	Total Assets
7.05B	6.60B	6.79B	7.72B	7.89B
	Total Debt
2.65B	2.68B	2.86B	3.37B	3.23B
	Net Debt
725.00M	1.01B	1.33B	1.51B	651.30M
	Total Liabilities
4.46B	4.15B	4.36B	5.19B	5.28B
	Stockholders Equity
2.59B	2.45B	2.43B	2.54B	2.60B
Cash Flow		Free Cash Flow
1.02B	904.90M	193.50M	549.00M	273.10M
	Operating Cash Flow
1.24B	1.07B	411.00M	715.90M	380.90M
	Investing Cash Flow
-264.10M	-256.80M	471.50M	-717.90M	195.00M
	Financing Cash Flow
-704.00M	-665.60M	-1.21B	-665.70M	356.80M

Ralph Lauren Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 267.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 267.2 is below the 20-day moving average (MA) of 275.52, above the 50-day MA of 242.92, and above the 200-day MA of 225.92, indicating a neutral trend. The MACD of 5.94 indicates Positive momentum. The RSI at 52.06 is Neutral, neither overbought nor oversold. The STOCH value of 10.77 is Positive, 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	76 Outperform	$16.15B	23.06	29.49%	1.23%	6.75%	19.71%
ZGN	76 Outperform	$3.51B	25.94	8.89%	1.50%	2.26%	-37.52%
LEVI	73 Outperform	$6.94B	19.74	18.03%	3.00%	4.63%	187.50%
PVH	72 Outperform	$3.16B	9.27	8.31%	0.23%	-3.63%	-37.24%
COLM	63 Neutral	$3.51B	16.36	12.34%	1.87%	-1.69%	-4.01%
Sector *	63 Neutral	$6.94B	11.34	2.80%	4.26%	2.68%	-24.70%
VFC	53 Neutral	$4.99B	―	-2.39%	2.81%	-8.42%	57.91%

Ralph Lauren Corporate Events

Ralph Lauren Completes $500 Million Senior Notes Offering

On June 5, 2025, Ralph Lauren Corporation completed a $500 million offering of 5.000% Senior Notes due 2032, with the proceeds intended for general corporate purposes, potentially including the repayment of existing debt. The issuance, managed by major financial institutions, reflects the company’s strategic financial management and positions it to maintain its competitive edge in the luxury fashion market.

The most recent analyst rating on (RL) stock is a Buy with a $196.00 price target. To see the full list of analyst forecasts on Ralph Lauren stock, see the RL Stock Forecast page.

Ralph Lauren Amends Employment Terms for Key Executive

On March 30, 2025, Ralph Lauren Corporation amended its employment agreement with Halide Alagoz, ensuring her annual base salary is at least $1 million and setting her annual stock award target at $2 million starting from the fiscal 2026 grant cycle. This amendment reflects the company’s commitment to retaining key talent and may impact its financial planning and stakeholder expectations.