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Ralph Lauren
(NYSE:RL)
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Rating:73Outperform
Price Target:
$418.00
▲(8.04% Upside)
Action:Reiterated
Date:05/22/26
Overall score is driven by strong fundamentals (high and improving margins and solid free cash flow) and a constructive earnings outlook with continued growth and margin expansion guidance. The main constraints are balance-sheet leverage and some cash-conversion variability, while technicals are positive on trend but show weakening momentum (negative MACD) and valuation is only moderate with a low dividend yield.
Positive Factors
High & Improving Profitability
Ralph Lauren exhibits industry-leading gross and operating margins that have expanded versus prior years. High AURs and favorable product/category mix support margin sustainability, giving durable earnings power and resilience through mid-cycle demand shifts over the next 2–6 months.
Negative Factors
Elevated Financial Leverage
Leverage meaningfully above industry-average levels reduces financial flexibility if growth softens. Higher debt increases interest and refinancing sensitivity, constraining capital allocation choices and elevating downside risk through 2–6 months of cyclical stress.
Read all positive and negative factors
Positive Factors
Negative Factors
High & Improving Profitability
Ralph Lauren exhibits industry-leading gross and operating margins that have expanded versus prior years. High AURs and favorable product/category mix support margin sustainability, giving durable earnings power and resilience through mid-cycle demand shifts over the next 2–6 months.
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
$23.90B
Dividend Yield0.93%
Average Volume (3M)828.70K
Price to Earnings (P/E)26.0
Beta (1Y)1.09
Revenue Growth14.63%
EPS Growth29.96%
CountryUS
Employees23,400
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)15.42
Shares Outstanding37,635,070
10 Day Avg. Volume799,295
30 Day Avg. Volume828,697
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 Cap1.07
Enterprise Value/Revenue3.16
Enterprise Value/Gross Profit4.52
Enterprise Value/Ebitda18.17
Forecast
1Y Price Target
$444.00Price Target Upside14.76% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)18.34
Revenue Forecast (FY)$8.59B
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 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 Earnings Call Summary
Earnings Call Date:May 21, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call presented a strongly positive operational and financial picture: record annual revenue above $8 billion, double-digit Q4 revenue growth, durable AUR gains (+16% Q4), gross- and full-year operating-margin expansion, robust cash generation (~$750M FCF) and strong momentum in China and digital channels. These highlights were balanced by manageable near-term headwinds—tariff uncertainty, higher marketing and operating expenses, a Q4 operating-margin contraction, and prudence around Europe and wholesale normalization. Management emphasized continued investments in brand elevation, AI/analytics and key-city expansion while maintaining a fortress balance sheet.Positive Updates
Record Full-Year Revenue Surpasses $8 Billion
Reported full year revenues surpassed $8.0 billion for the first time; top- and bottom-line results exceeded expectations in the first year of the Next Great Chapter Drive plan.
Negative Updates
Tariff Uncertainty and Cost Headwinds
Company faced meaningful tariff headwinds during the year and expects a sequential increase in tariff pressure in the second half of fiscal 2027; outlook does not assume potential tariff refunds. Also cited modest headwinds from higher labor and non-cotton material costs and potential higher freight from recent energy price increases.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Full-Year Revenue Surpasses $8 Billion
Reported full year revenues surpassed $8.0 billion for the first time; top- and bottom-line results exceeded expectations in the first year of the Next Great Chapter Drive plan.
Read all positive updates
Company Guidance
For fiscal 2027 the company guided full‑year constant‑currency revenue growth of mid single digits (centered around 4%–5%, with a 53rd week expected to add ~1 point), with regional revenue targets of North America ~low single digits, Europe ~low‑ to‑mid single digits, Asia ~high single digits and China ~mid teens; full‑year operating margin is expected to expand ~40–60 bps in constant currency (driven by modest gross margin expansion and operating‑expense leverage), gross margin modestly up, foreign currency broadly neutral, and the outlook excludes any tariff refunds (noting a lower 10% tariff prevailing in H1 and assumed sequential tariff headwinds in H2 with H2 gross margin expected in line with modest year‑over‑year expansion). For Q1 the company expects revenue up mid‑ to‑high single digits, operating margin expansion of ~80–120 bps, and a tax rate of 22%–23% (full‑year tax rate ~21%–22%); AUR growth is expected to normalize to mid single digits for the year (Q1 high single digits) on top of last year’s ~15% AUR increase; marketing spend is planned around ~8% of sales (Q4 marketing 8.1%, FY26 marketing 7.9%), capital expenditures ~4%–5% of sales, and the balance sheet remains strong (cash/short‑term investments ~$2.1B, total debt ~$1.2B) after generating ~ $750M free cash flow and returning >$700M to shareholders in FY26 (including a Board‑approved 10% dividend increase).Ralph Lauren Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
63
Positive
Cash Flow
70
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 8.11B | 7.08B | 6.63B | 6.44B | 6.22B |
| Gross Profit | 5.67B | 4.85B | 4.43B | 4.17B | 4.15B |
| EBITDA | 1.41B | 1.21B | 1.05B | 952.80M | 1.04B |
| Net Income | 941.10M | 742.90M | 646.30M | 522.70M | 600.10M |
Balance Sheet | |||||
| Total Assets | 6.44B | 7.05B | 6.60B | 6.79B | 7.72B |
| Cash, Cash Equivalents and Short-Term Investments | 2.06B | 2.08B | 1.78B | 1.57B | 2.60B |
| Total Debt | 2.99B | 2.67B | 3.69B | 4.02B | 3.39B |
| Total Liabilities | 3.60B | 4.46B | 4.15B | 4.36B | 5.19B |
| Stockholders Equity | 2.84B | 2.59B | 2.45B | 2.43B | 2.54B |
Cash Flow | |||||
| Free Cash Flow | 746.10M | 1.02B | 904.90M | 193.50M | 549.00M |
| Operating Cash Flow | 1.15B | 1.24B | 1.07B | 411.00M | 715.90M |
| Investing Cash Flow | -356.60M | -264.10M | -256.80M | 471.50M | -717.90M |
| Financing Cash Flow | -769.70M | -704.00M | -665.60M | -1.21B | -665.70M |
Ralph Lauren Technical Analysis
Positive
386.88
Price Trends
372.20
Positive
363.26
Positive
351.24
Positive
Market Momentum
11.35
Positive
56.48
Neutral
28.25
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 below the 20-day moving average (MA) of 393.30, above the 50-day MA of 372.20, and above the 200-day MA of 351.24, indicating a bullish trend. The MACD of 11.35 indicates Positive momentum. The RSI at 56.48 is Neutral, neither overbought nor oversold. The STOCH value of 28.25 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $9.55B | 15.84 | 28.33% | 2.58% | 2.61% | 30.39% | |
73 Outperform | $23.90B | 26.02 | 34.77% | 0.93% | 14.63% | 29.96% | |
69 Neutral | $4.61B | 16.72 | 50.10% | 3.36% | 20.78% | 20.89% | |
68 Neutral | $5.51B | 30.65 | 10.25% | 1.33% | 2.91% | 29.96% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | $3.42B | 22.32 | 3.25% | 0.22% | 3.54% | -55.30% | |
52 Neutral | $6.54B | 25.61 | 15.92% | 1.95% | -0.72% | ― |
* Consumer Cyclical Sector Average
RL
Ralph Lauren
401.41
129.82
47.80%
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KTB
Kontoor Brands
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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.