Ralph Lauren (RL) AI Stock Analysis

• Market Cap: $22.18B
• Dividend Yield: 0.93%
• Average Volume (3M): 698.00K
• Price to Earnings (P/E): 27.0
• Beta (1Y): 1.14
• 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: 38,759,380
• 10 Day Avg. Volume: 772,452
• 30 Day Avg. Volume: 697,999
• PEG Ratio: 0.92
• Price to Book (P/B): 5.22
• Price to Sales (P/S): 1.91
• P/FCF Ratio: 13.25
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 2.73
• Enterprise Value/Gross Profit: 3.95
• Enterprise Value/Ebitda: 15.64
• 1Y Price Target: $392.75
• Price Target Upside: 6.13% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 15.37
• Revenue Forecast (FY): $7.78B

• Rating: 78 Outperform
• Price Target: $399.00 ▲(7.82% Upside)

Ralph Lauren's strong financial performance and positive earnings call are the most significant factors driving the score. The company's strategic growth plan and technical indicators also support a favorable outlook. However, valuation concerns and potential macroeconomic pressures in North America slightly temper the overall score.

Positive Factors

Revenue Growth

Ralph Lauren's revenue growth exceeding expectations indicates strong market demand and effective execution of strategic initiatives, supporting long-term business expansion.

Strategic Growth Plan

The strategic plan focuses on brand elevation and market expansion, which can enhance competitive positioning and drive sustainable long-term growth.

Digital and Retail Expansion

Strong growth in digital and retail channels reflects successful adaptation to consumer trends, enhancing market reach and supporting future revenue streams.

Negative Factors

Free Cash Flow Challenges

Declining free cash flow may limit the company's ability to invest in growth opportunities and return capital to shareholders, affecting long-term financial flexibility.

Macroeconomic Pressures

Potential macroeconomic pressures in North America could impact consumer spending, posing a risk to revenue growth and profitability in a key market.

Impact of Tariffs

Increasing tariffs could lead to higher costs and margin pressure, affecting profitability and competitive pricing in the long term.

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 primarily through the sale of its branded products across multiple categories. Key revenue streams include direct-to-consumer sales from its retail and outlet stores, e-commerce platforms, and wholesale distribution to third-party retailers. The company also earns income from licensing agreements for products such as fragrances and home goods. Significant partnerships with department stores and multi-brand retailers enhance distribution reach. Additionally, brand marketing and the high perceived value of its products contribute to strong profit margins, while international expansion into markets such as Asia and Europe offers further growth opportunities.

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	7.57B	7.08B	6.63B	6.44B	6.22B	4.40B
Gross Profit	5.24B	4.85B	4.43B	4.17B	4.15B	2.86B
EBITDA	1.32B	1.21B	1.05B	952.80M	1.04B	221.30M
Net Income	854.30M	742.90M	646.30M	522.70M	600.10M	-121.10M
Balance Sheet
Total Assets	7.35B	7.05B	6.60B	6.79B	7.72B	7.89B
Cash, Cash Equivalents and Short-Term Investments	1.65B	2.08B	1.78B	1.57B	2.60B	2.78B
Total Debt	2.85B	2.67B	2.68B	2.88B	3.39B	3.62B
Total Liabilities	4.77B	4.46B	4.15B	4.36B	5.19B	5.28B
Stockholders Equity	2.58B	2.59B	2.45B	2.43B	2.54B	2.60B
Cash Flow
Free Cash Flow	667.70M	1.02B	904.90M	193.50M	549.00M	273.10M
Operating Cash Flow	1.09B	1.24B	1.07B	411.00M	715.90M	380.90M
Investing Cash Flow	-294.10M	-264.10M	-256.80M	471.50M	-717.90M	195.00M
Financing Cash Flow	-723.30M	-704.00M	-665.60M	-1.21B	-665.70M	356.80M

Ralph Lauren Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 370.06
• 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 370.06 is above the 20-day moving average (MA) of 360.47, above the 50-day MA of 339.89, and above the 200-day MA of 286.00, indicating a bullish trend. The MACD of 8.93 indicates Positive momentum. The RSI at 61.78 is Neutral, neither overbought nor oversold. The STOCH value of 66.10 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
LEVI	79 Outperform	$8.51B	18.79	25.99%	2.48%	3.20%	200.49%
RL	78 Outperform	$22.18B	27.01	34.01%	0.93%	12.32%	29.40%
ZGN	74 Outperform	$4.19B	25.07	10.58%	1.37%	-1.88%	-5.94%
KTB	66 Neutral	$3.56B	16.47	49.11%	3.27%	9.90%	-12.67%
PVH	66 Neutral	$3.28B	10.76	6.70%	0.21%	0.52%	-45.80%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
VFC	60 Neutral	$7.24B	81.89	6.39%	1.94%	-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.