Ralph Lauren (RL) AI Stock Analysis

• Market Cap: $18.16B
• Dividend Yield: 1.17%
• Average Volume (3M): 658.05K
• Price to Earnings (P/E): 23.9
• Beta (1Y): 1.14
• Revenue Growth: 9.61%
• EPS Growth: 21.14%
• Country: US
• Employees: 14,800
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Apparel - Manufacturers
• EPS (TTM): 3.77
• Shares Outstanding: 38,693,005
• 10 Day Avg. Volume: 869,761
• 30 Day Avg. Volume: 658,054
• 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: 1.00
• Enterprise Value/Revenue: 2.50
• Enterprise Value/Gross Profit: 3.67
• Enterprise Value/Ebitda: 14.21
• 1Y Price Target: $333.50
• Price Target Upside: 14.85% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17

• Rating: 77 Outperform
• Price Target: $343.00 ▲(18.12% Upside)

Ralph Lauren's overall stock score of 77 reflects strong financial performance and positive earnings call sentiment, supported by robust international growth and strategic initiatives. While the stock shows positive technical indicators, its high P/E ratio suggests potential overvaluation. The recent corporate event further strengthens its financial positioning.

Positive Factors

Earnings Performance

RL's +13% comps and +180bps of GM led to yet another solid EPS beat, indicating strong performance.

Geographical Sales Growth

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

Negative Factors

Consumer Spending Concerns

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

Revenue and Margin Outlook

There is caution around NA DTC for the second half, with expectations of no revenue growth and margin erosion.

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 exhibits 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. The company is well-positioned in the apparel manufacturing industry, with a strong operational foundation and potential for future growth.

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	4.97B	4.85B	4.43B	4.17B	4.15B	2.86B
EBITDA	1.28B	1.23B	1.06B	801.70M	1.04B	232.60M
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: Neutral
• Last Price: 290.39
• 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 Neutral. The current price of 290.39 is below the 20-day moving average (MA) of 295.59, above the 50-day MA of 283.60, and above the 200-day MA of 246.74, indicating a neutral trend. The MACD of 2.97 indicates Positive momentum. The RSI at 49.12 is Neutral, neither overbought nor oversold. The STOCH value of 73.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$8.20B	20.48	20.93%	2.56%	2.90%	182.72%
RL	77 Outperform	$18.16B	23.92	32.55%	1.17%	9.61%	21.14%
PVH	65 Neutral	$3.55B	10.41	8.31%	0.20%	-3.63%	-37.24%
ZGN	65 Neutral	$3.23B	23.89	8.89%	1.74%	2.26%	-37.52%
COLM	64 Neutral	$2.89B	13.42	12.93%	2.28%	0.81%	4.86%
Sector *	61 Neutral	$17.22B	11.49	-5.97%	3.08%	1.37%	-15.54%
VFC	50 Neutral	$4.77B	56.22	7.83%	2.78%	-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.

The most recent analyst rating on (RL) stock is a Buy with a $268.00 price target. To see the full list of analyst forecasts on Ralph Lauren stock, see the RL Stock Forecast page.

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.