Ralph Lauren (RL) AI Stock Analysis

• Market Cap: $17.99B
• Dividend Yield: 1.08%
• Average Volume (3M): 699.78K
• Price to Earnings (P/E): 24.8
• Beta (1Y): 1.11
• Revenue Growth: 9.61%
• EPS Growth: 21.14%
• Country: US
• Employees: 14,800
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Apparel - Manufacturers
• EPS (TTM): 3.77
• Shares Outstanding: 38,693,005
• 10 Day Avg. Volume: 576,288
• 30 Day Avg. Volume: 699,785
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 2.50
• Enterprise Value/Gross Profit: 3.63
• Enterprise Value/Ebitda: 14.27
• 1Y Price Target: $342.64
• Price Target Upside: 6.82% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

• Rating: 77 Outperform
• Price Target: $334.00 ▲(4.13% Upside)

Ralph Lauren's strong financial performance and positive earnings call are the most significant factors driving the score. The company's strategic initiatives and solid technical indicators support a favorable outlook, though valuation and potential tariff impacts warrant caution.

Positive Factors

Brand Endorsement

The engagement of Taylor Swift and Travis Kelce, both wearing Ralph Lauren, supports the strength of RL's brand and likely continued momentum ahead.

Guidance and Valuation

Management increased revenue guidance to reflect the first-quarter beat and embedded a foreign exchange benefit due to the weaker USD.

Sales Performance

Ralph Lauren reported stronger sales in each geography, with significant growth in Asia, North America, and Europe.

Negative Factors

Stock Performance

Stock's decline a function of high expectations despite well above consensus Q1 results and Q2 guidance.

US Consumer Concerns

Management maintains a cautious view on the US consumer due to tariffs and resulting price increases.

Ralph Lauren Business Overview & Revenue Model

Company Description

Ralph Lauren Corporation (RL) is a globally recognized American fashion company known for its premium lifestyle products that encompass apparel, accessories, home furnishings, and fragrances. Founded in 1967 by designer Ralph Lauren, the brand is synonymous with classic American style and has established a diverse portfolio of products that cater to various market segments, including men, women, and children. The company operates through multiple segments, including wholesale, retail, and licensing, offering a wide range of products such as clothing, footwear, and home goods.

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 prudent leverage use, though cash flow metrics suggest 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	7.29B	7.08B	6.63B	6.44B	6.22B	4.40B
Gross Profit	5.03B	4.85B	4.43B	4.17B	4.15B	2.86B
EBITDA	1.28B	1.21B	1.05B	952.80M	1.04B	221.30M
Net Income	794.70M	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	763.80M	1.02B	904.90M	193.50M	549.00M	273.10M
Operating Cash Flow	1.13B	1.24B	1.07B	411.00M	715.90M	380.90M
Investing Cash Flow	-374.80M	-264.10M	-256.80M	471.50M	-717.90M	195.00M
Financing Cash Flow	-336.30M	-704.00M	-665.60M	-1.21B	-665.70M	356.80M

Ralph Lauren Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 320.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 320.75 is above the 20-day moving average (MA) of 294.52, above the 50-day MA of 291.15, and above the 200-day MA of 253.12, indicating a bullish trend. The MACD of 5.28 indicates Negative momentum. The RSI at 72.24 is Negative, neither overbought nor oversold. The STOCH value of 94.87 is Negative, 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	78 Outperform	$8.95B	22.36	20.93%	2.35%	2.90%	182.72%
RL	77 Outperform	$17.99B	24.83	32.55%	1.08%	9.61%	21.14%
PVH	72 Outperform	$4.13B	9.64	9.32%	0.17%	-1.14%	-29.30%
KTB	71 Outperform	$4.41B	17.69	58.07%	2.56%	3.47%	5.86%
ZGN	71 Outperform	$3.38B	24.92	8.89%	1.61%	2.26%	-37.52%
Sector *	61 Neutral	$17.96B	13.14	-5.29%	3.00%	1.25%	-13.95%
VFC	55 Neutral	$5.80B	68.32	7.83%	2.40%	-7.41%	―

Ralph Lauren Corporate Events

Ralph Lauren Holds Annual Stockholders Meeting, Elects Directors

The Annual Meeting of Stockholders of Ralph Lauren Corporation took place on July 31, 2025, where all nominated directors were elected to serve until the 2026 meeting. Additionally, the appointment of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending March 28, 2026, was ratified, and the compensation of the company’s named executive officers was approved on an advisory basis. These decisions reflect the company’s ongoing commitment to its governance and operational strategies, potentially impacting its market positioning and stakeholder confidence.

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.