Ralph Lauren (RL) AI Stock Analysis

• Market Cap: $16.95B
• Dividend Yield: 1.33%
• Average Volume (3M): 713.80K
• Price to Earnings (P/E): 24.1
• Beta (1Y): 1.13
• Revenue Growth: 6.75%
• EPS Growth: 19.71%
• Country: US
• Employees: 14,800
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Apparel - Manufacturers
• EPS (TTM): 2.27
• Shares Outstanding: 38,691,715
• 10 Day Avg. Volume: 660,622
• 30 Day Avg. Volume: 713,800
• PEG Ratio: 3.75
• Price to Book (P/B): 6.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.64
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 0.61
• Enterprise Value/Gross Profit: 3.43
• Enterprise Value/Ebitda: 3.83
• 1Y Price Target: $310.33
• Price Target Upside: 10.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 76 Outperform
• Price Target: $311.00 ▲(11.15%Upside)

Ralph Lauren's overall score reflects strong financial performance and positive technical indicators. While valuation is on the high side, the company's strategic financial management and international growth prospects provide a solid outlook. Cautious optimism is warranted given macroeconomic challenges.

Positive Factors

Earnings Performance

RL reported 4Q adjusted EPS of $2.27, which is 13% above the Street expectations.

Financial Strategy

RL announced a 10% dividend increase and a $1.5bn increase to its share repurchase program.

Sales Performance

Accelerating sales across regions increase confidence that share gains are sustainable.

Negative Factors

Market Demand

Management is taking a cautious view on the 2H given the potential for weaker demand, particularly in the US.

Regional Weakness

One area of concern has been some modest weakness within NA, particularly the wholesale and e-commerce channels.

Valuation Concerns

Valuation has become a bit stretched, indicating potential concerns about overvaluation.

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 products across wholesale, retail, and licensing channels. The wholesale segment involves selling apparel and related products to department stores, specialty retailers, and international distributors. The retail segment encompasses company-operated stores, including flagship stores, factory outlets, and e-commerce platforms, providing direct access to consumers. Licensing agreements also contribute significantly to Ralph Lauren's revenue, allowing third parties to manufacture and distribute products under its brand names, such as eyewear and fragrances. Key factors contributing to its earnings include brand strength, global distribution networks, and strategic partnerships with high-profile retailers and digital platforms.

Ralph Lauren Financial Statement Overview

Summary

Ralph Lauren demonstrates a robust financial profile characterized by strong revenue growth, efficient operations, and effective cash flow management. The balance sheet shows moderate leverage, but profitability and cash generation capabilities offset potential risks.

Income Statement

Ralph Lauren has shown consistent revenue growth, with a notable increase of 6.75% from 2024 to 2025. The gross profit margin is strong at approximately 68.5%, and the net profit margin has improved to 10.5%. EBIT and EBITDA margins also reflect healthy operational efficiency, indicating robust profitability. The upward trend in revenue and profit margins highlights the company's strength in capitalizing on market opportunities and managing costs effectively.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.02, indicating moderate leverage. The equity ratio is fairly strong at 36.7%, suggesting a solid asset base funded by equity. Return on equity has improved to 28.7%, showcasing effective use of shareholder capital. However, the decrease in cash reserves may pose a risk if the company's cash flow is not managed efficiently.

Cash Flow

Ralph Lauren's cash flow statement shows a healthy operating cash flow to net income ratio of 1.66, indicating strong cash-generating ability from operations. Free cash flow has grown by 12.6% year-over-year, reflecting effective capital expenditures and operational efficiency. The company's ability to generate cash from operations and maintain sufficient free cash flow boosts its financial flexibility.

Breakdown	Mar 2025	Mar 2024	Jun 2023	Jun 2022	Mar 2021
Income Statement
Total Revenue	7.08B	6.63B	6.44B	6.22B	4.40B
Gross Profit	4.85B	4.43B	4.17B	4.15B	2.86B
EBITDA	1.23B	1.06B	801.70M	1.04B	232.60M
Net Income	742.90M	646.30M	522.70M	600.10M	-121.10M
Balance Sheet
Total Assets	7.05B	6.60B	6.79B	7.72B	7.89B
Cash, Cash Equivalents and Short-Term Investments	2.08B	1.78B	1.57B	2.60B	2.78B
Total Debt	2.65B	2.68B	2.86B	3.37B	3.23B
Total Liabilities	4.46B	4.15B	4.36B	5.19B	5.28B
Stockholders Equity	2.59B	2.45B	2.43B	2.54B	2.60B
Cash Flow
Free Cash Flow	1.02B	904.90M	193.50M	549.00M	273.10M
Operating Cash Flow	1.24B	1.07B	411.00M	715.90M	380.90M
Investing Cash Flow	-264.10M	-256.80M	471.50M	-717.90M	195.00M
Financing Cash Flow	-704.00M	-665.60M	-1.21B	-665.70M	356.80M

Ralph Lauren Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 279.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 279.81 is above the 20-day moving average (MA) of 270.36, above the 50-day MA of 261.38, and above the 200-day MA of 232.17, indicating a bullish trend. The MACD of 3.53 indicates Negative momentum. The RSI at 61.24 is Neutral, neither overbought nor oversold. The STOCH value of 78.30 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	77 Outperform	$7.55B	21.50	18.03%	2.70%	4.63%	187.50%
RL	76 Outperform	$16.95B	24.11	29.49%	1.33%	6.75%	19.71%
ZGN	76 Outperform	$3.73B	27.60	8.89%	1.44%	2.26%	-37.52%
COLM	71 Outperform	$3.49B	16.30	12.34%	1.87%	-1.69%	-4.01%
PVH	68 Neutral	$3.48B	10.21	8.31%	0.20%	-3.63%	-37.24%
Sector *	62 Neutral	$16.85B	11.50	-7.38%	2.96%	1.59%	-23.36%
VFC	47 Neutral	$4.86B	―	-2.39%	2.88%	-7.52%	94.28%

Ralph Lauren Corporate Events

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.