Ralph Lauren (RL) AI Stock Analysis

• Market Cap: $18.91B
• Dividend Yield: 1.09%
• Average Volume (3M): 627.68K
• Price to Earnings (P/E): 24.8
• Beta (1Y): 1.09
• Revenue Growth: 9.61%
• EPS Growth: 21.14%
• Country: US
• Employees: 14,800
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 3.77
• Shares Outstanding: 38,693,005
• 10 Day Avg. Volume: 685,237
• 30 Day Avg. Volume: 627,682
• 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: 0.96
• Enterprise Value/Revenue: 2.50
• Enterprise Value/Gross Profit: 3.63
• Enterprise Value/Ebitda: 14.27
• 1Y Price Target: $349.21
• Price Target Upside: 11.92% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

• Rating: 77 Outperform
• Price Target: $334.00 ▲(7.05% 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

Revenue Growth

Strong revenue growth across regions indicates effective market strategies and brand strength, supporting long-term business expansion.

Margin Improvement

Improved margins reflect effective cost management and pricing strategies, enhancing profitability and competitive positioning.

Strategic Financial Management

Issuing senior notes strengthens financial flexibility, allowing for strategic investments and debt management, supporting long-term growth.

Negative Factors

Potential Tariff Impacts

Tariff-related pressures could impact consumer behavior and cost structures, posing risks to revenue and profitability in key markets.

Inventory Increase

Rising inventory levels may indicate potential overstocking risks, affecting cash flow and requiring careful management to avoid markdowns.

Cash Flow Concerns

Declining free cash flow growth suggests challenges in converting revenue into cash, potentially limiting investment capacity and financial flexibility.

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 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: 312.01
• 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 Positive. The current price of 312.01 is above the 20-day moving average (MA) of 310.13, above the 50-day MA of 299.78, and above the 200-day MA of 259.87, indicating a bullish trend. The MACD of 4.08 indicates Positive momentum. The RSI at 55.90 is Neutral, neither overbought nor oversold. The STOCH value of 48.93 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	78 Outperform	9.18B	22.81	19.39%	2.28%	2.90%	182.72%
RL	77 Outperform	$18.91B	24.80	32.55%	1.09%	9.61%	21.14%
PVH	73 Outperform	4.31B	9.84	9.63%	0.17%	-1.14%	-29.30%
KTB	71 Outperform	4.52B	17.85	50.42%	2.56%	3.47%	5.86%
ZGN	70 Outperform	3.89B	23.40	8.41%	1.48%	-1.88%	-5.94%
VFC	54 Neutral	5.79B	68.28	-3.66%	2.43%	-7.41%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

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.