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Ralph Lauren
(NYSE:RL)
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Rating:74Outperform
Price Target:
$426.00
â–²(14.03% Upside)
Action:Reiterated
Date:08/06/26
RL scores well primarily on strong financial performance (high and improving margins with solid, growing free cash flow) and an upbeat earnings outlook with raised guidance. The score is tempered by neutral-to-soft near-term technical signals (negative MACD, trading below the 50-day average) and a valuation that is not clearly cheap (P/E ~24.7) with a modest dividend yield.
Positive Factors
High and expanding margins
Sustained high gross and operating margins indicate durable pricing power and favorable mix toward full‑price and higher‑margin channels. Margin strength supports reinvestment, shareholder returns and resilience to modest top‑line softness over the medium term.
Negative Factors
Elevated financial leverage
Meaningful leverage reduces financial flexibility and increases vulnerability to revenue shocks or rising interest costs. In a consumer cyclical industry, higher debt can constrain investment cadence, limit opportunistic M&A, and pressure cash returns during downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
High and expanding margins
Sustained high gross and operating margins indicate durable pricing power and favorable mix toward full‑price and higher‑margin channels. Margin strength supports reinvestment, shareholder returns and resilience to modest top‑line softness over the medium term.
Read all positive factors
Ralph Lauren Key Performance Indicators (KPIs)
Any
Operating Income by Geography
Highlights the operating income generated from different regions, indicating where Ralph Lauren is most profitable and where it might face challenges or opportunities for expansion.
Highlights the operating income generated from different regions, indicating where Ralph Lauren is most profitable and where it might face challenges or opportunities for expansion.
Data provided by:
The Fly
The FlyRalph Lauren (RL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.15B
Dividend Yield0.96%
Average Volume (3M)608.43K
Price to Earnings (P/E)24.1
Beta (1Y)1.06
Revenue Growth14.68%
EPS Growth26.22%
CountryUS
Employees23,600
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)16.17
Shares Outstanding37,635,070
10 Day Avg. Volume547,242
30 Day Avg. Volume608,435
Financial Highlights & Ratios
PEG Ratio0.71
Price to Book (P/B)7.04
Price to Sales (P/S)2.46
P/FCF Ratio26.80
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$454.29Price Target Upside21.60% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering16
EPS Forecast (FY)18.81
Revenue Forecast (FY)$8.69B
Ralph Lauren Business Overview & Revenue Model
Company Description
Ralph Lauren Corporation is a prominent international entity primarily involved in the creation, marketing, and distribution of premium lifestyle goods across North America, Europe, Asia, and other global regions. The company's diverse product ran...
How the Company Makes Money
Ralph Lauren makes money by selling branded products through multiple channels and collecting revenue based on the selling method (direct retail vs. wholesale vs. licensed). (1) Direct-to-consumer (DTC): The company generates revenue from sales ma...
Ralph Lauren Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call conveyed broad-based, high-quality growth with meaningful margin expansion, strong customer acquisition, and elevated brand momentum — particularly driven by Asia/China and digital — while acknowledging regional macro pressures (notably Europe), tariff and FX headwinds, and planned channel/wholesale rationalization that will pressure back-half cadence. On balance, positive operational and financial execution outweigh near-term risks.Positive Updates
Quarterly Revenue Growth
Total company revenue increased 13% in Q1 (constant currency), ahead of mid- to high single-digit outlook and driven by broad-based performance across regions and channels.
Negative Updates
Europe Macro Pressure and Slower Store Traffic
Europe revenue grew only 5% with retail comps up 1% on a difficult prior-year compare; store traffic was impacted by a pressured consumer environment, weaker tourism and elevated energy costs — company is taking a measured/prudent view on EMEA.
Read all updates
Q1-2027 Updates
Positive
Negative
Quarterly Revenue Growth
Total company revenue increased 13% in Q1 (constant currency), ahead of mid- to high single-digit outlook and driven by broad-based performance across regions and channels.
Read all positive updates
Company Guidance
Ralph Lauren raised its fiscal 2027 outlook after a strong Q1 and now expects constant‑currency revenue growth mid‑single digits centered around 5–6% (up from 4–5%), with foreign exchange headwinds of roughly 50–100 bps and a 53rd week adding ~1 point to revenue; by region it forecasts North America ~low‑single‑digit growth, Europe ~low‑ to mid‑single digits, and Asia ~high‑single to low‑double digits. The company now expects full‑year operating margin expansion of ~60–80 bps (up from 40–60) and gross margin expansion of ~50–70 bps, with AUR growth of mid‑ to high‑single digits for Q2 and the full year; Q2 revenue is guided mid‑singles centered 5–6% with FX ~‑100 to ‑150 bps and Q2 operating margin expansion of ~80–100 bps. Other guidance/assumptions: tariffs ~10% in H1 then reciprocal high‑teens in H2, FX roughly neutral to margins, Q2 tax rate ~19–20% (FY ~21–22%), marketing around ~8% of sales for FY27; Q1 metrics included revenue +13%, adjusted gross margin +130 bps to 73.6%, adjusted operating margin +150 bps to 18.5%, DTC comps +12% and wholesale +13%, added 1.5M new DTC customers, returned >$300M to shareholders, $1.9B cash and $1.2B debt, and net inventory down ~3% (constant currency).Ralph Lauren Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
70
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.36B | 8.11B | 7.08B | 6.63B | 6.44B | 6.22B |
| Gross Profit | 5.87B | 5.67B | 4.85B | 4.43B | 4.17B | 4.15B |
| EBITDA | 1.48B | 1.41B | 1.21B | 1.05B | 952.80M | 1.04B |
| Net Income | 982.90M | 941.10M | 742.90M | 646.30M | 522.70M | 600.10M |
Balance Sheet | ||||||
| Total Assets | 7.66B | 6.44B | 7.05B | 6.60B | 6.79B | 7.72B |
| Cash, Cash Equivalents and Short-Term Investments | 1.94B | 2.06B | 2.08B | 1.78B | 1.57B | 2.60B |
| Total Debt | 3.00B | 2.99B | 2.67B | 3.69B | 4.02B | 3.39B |
| Total Liabilities | 4.94B | 3.60B | 4.46B | 4.15B | 4.36B | 5.19B |
| Stockholders Equity | 2.72B | 2.84B | 2.59B | 2.45B | 2.43B | 2.54B |
Cash Flow | ||||||
| Free Cash Flow | 1.04B | 746.10M | 1.02B | 904.90M | 193.50M | 549.00M |
| Operating Cash Flow | 1.32B | 1.15B | 1.24B | 1.07B | 411.00M | 715.90M |
| Investing Cash Flow | -362.40M | -356.60M | -264.10M | -256.80M | 471.50M | -717.90M |
| Financing Cash Flow | -1.27B | -769.70M | -704.00M | -665.60M | -1.21B | -665.70M |
Ralph Lauren Technical Analysis
Positive
373.58
Price Trends
389.61
Negative
373.74
Positive
362.21
Positive
Market Momentum
2.44
Negative
51.00
Neutral
48.28
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 373.58 is below the 20-day moving average (MA) of 384.93, below the 50-day MA of 389.61, and above the 200-day MA of 362.21, indicating a neutral trend. The MACD of 2.44 indicates Negative momentum. The RSI at 51.00 is Neutral, neither overbought nor oversold. The STOCH value of 48.28 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 31 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $23.15B | 24.05 | 35.64% | 1.00% | 14.68% | 26.22% | |
70 Outperform | $8.68B | 13.83 | 28.66% | 2.36% | 4.34% | 20.99% | |
68 Neutral | $4.64B | 17.54 | 45.96% | 2.53% | 15.62% | 6.80% | |
68 Neutral | $5.82B | 32.14 | 10.25% | 0.96% | 2.91% | 29.96% | |
65 Neutral | $3.80B | 24.77 | 3.25% | 0.19% | 3.54% | -55.30% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
51 Neutral | $5.85B | 21.24 | 15.95% | 2.11% | -0.16% | 212.77% |
* Consumer Cyclical Sector Average
RL
Ralph Lauren
388.92
102.35
35.72%
PVH
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6.37
8.37%
VFC
VF
14.87
2.02
15.71%
LEVI
Levi Strauss & Co
22.55
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9.99%
KTB
Kontoor Brands
84.90
15.33
22.03%
ZGN
Ermenegildo Zegna
13.76
5.84
73.83%
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.