Ralph Lauren Corp (RL)
NYSE:RL
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Ralph Lauren
(NYSE:RL)
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Rating:69Neutral
Price Target:
$422.00
▲(17.68% Upside)
Action:DowngradedDate:02/06/26
The score is driven primarily by solid fundamentals and a constructive earnings outlook (raised FY2026 guidance and strong recent operating performance). The main constraint is weak near-term technical momentum (below key moving averages with negative MACD and low RSI/Stoch). Valuation is reasonable but not a clear bargain, and leverage/cash-conversion consistency remain secondary watch items.
Positive Factors
High gross & improving net margins
Sustained ~70% gross margins and rising net margins reflect durable brand pricing power and favorable product mix. High gross margins provide a structural buffer versus cost volatility, underpinning long-term profitability and supporting reinvestment, dividends, and buybacks.
Negative Factors
Meaningful leverage
Net leverage at about 1.0x equity constrains capital flexibility compared with lower‑leverage peers. In a downturn or if margins compress, servicing debt could force tighter spending or slower buybacks, making sustained profitability essential to maintain strategic optionality.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross & improving net margins
Sustained ~70% gross margins and rising net margins reflect durable brand pricing power and favorable product mix. High gross margins provide a structural buffer versus cost volatility, underpinning long-term profitability and supporting reinvestment, dividends, and buybacks.
Read all positive factors
Ralph Lauren (RL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$21.71B
Dividend Yield0.93%
Average Volume (3M)646.87K
Price to Earnings (P/E)15.1
Beta (1Y)1.12
Revenue Growth12.32%
EPS Growth29.40%
CountryUS
Employees23,400
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)6.22
Shares Outstanding38,655,136
10 Day Avg. Volume700,019
30 Day Avg. Volume646,867
Financial Highlights & Ratios
PEG Ratio0.92
Price to Book (P/B)5.22
Price to Sales (P/S)1.91
P/FCF Ratio13.25
Enterprise Value/Market Cap1.07
Enterprise Value/Revenue2.96
Enterprise Value/Gross Profit4.25
Enterprise Value/Ebitda16.43
Forecast
1Y Price Target
$421.67Price Target Upside17.59% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)17.96
Revenue Forecast (FY)$8.43B
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, ...
How the Company Makes Money
Ralph Lauren generates revenue primarily through the sale of its branded products across multiple categories. Key revenue streams include direct-to-consumer sales from its retail and outlet stores, e-commerce platforms, and wholesale distribution ...
Ralph Lauren Key Performance Indicators (KPIs)
Any
Net Revenue by Geography
Shows the distribution of net revenue across various regions, providing insight into Ralph Lauren's market strength and potential growth areas globally.
Shows the distribution of net revenue across various regions, providing insight into Ralph Lauren's market strength and potential growth areas globally.
Data provided by:
The Fly
The FlyRalph Lauren Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:May 21, 2026
Earnings Call Sentiment Positive
The call conveyed strong, broad-based operating momentum: revenue growth exceeded expectations (10% in Q3), margins expanded significantly (gross margin +140 bps; operating margin +200 bps), AUR accelerated (18%), and the company raised FY26 guidance while generating robust cash flow and adding millions of new customers. Near-term headwinds—primarily tariff-related cost pressure, Q4 transitional timing shifts, strategic reductions in off-price wholesale, and higher marketing spend—are expected to weigh on margins in the immediate term. However, management framed these as tactical choices in support of a multi-year brand elevation plan and expects margin expansion across the plan horizon.Positive Updates
Total Company Revenue Growth Above Expectations
Third quarter constant-currency revenue grew 10%, above the mid-single-digit outlook, driven by broad-based performance across geographies, channels, and product categories.
Negative Updates
Tariff-Related Cost Pressure and Near-Term Margin Headwinds
Higher U.S. tariffs are flowing through cost of goods sold and are expected to be a meaningful gross margin headwind through the first half of next fiscal year; Q4 gross and operating margins are expected to decline with Q4 operating margin guided to contract ~80–120 basis points.
Read all updates
Q3-2026 Updates
Positive
Negative
Total Company Revenue Growth Above Expectations
Third quarter constant-currency revenue grew 10%, above the mid-single-digit outlook, driven by broad-based performance across geographies, channels, and product categories.
Read all positive updates
Company Guidance
Ralph Lauren raised its fiscal 2026 outlook and provided detailed quarterly and full‑year guidance: it now expects constant‑currency revenue growth of high‑single to low‑double digits (up from prior 5–7%), with a foreign‑currency tailwind of ~200–250 bps for the year; by region, North America is expected to grow at the high end of mid‑single digits, Europe at the high end of mid‑single digits, and Asia mid‑teens (up from prior high‑single to low‑double digits). Full‑year operating margin is now expected to expand ~100–140 bps (vs. prior 60–80 bps) and gross margin to expand ~40–80 bps, with FX benefiting gross and operating margins by ~20 and ~50 bps respectively; Q4 constant‑currency revenues are guided to about mid‑single‑digit growth (FX +200–300 bps), Q4 AUR growth is expected high‑single to low‑double digits, but Q4 gross and operating margins are expected to decline—with Q4 operating margin contracting ~80–120 bps and operating expenses roughly flat as a percent of sales—and FX is expected to benefit Q4 gross/op margins by ~50 and ~100 bps. Tax rate for both Q4 and the full year is guided to 19–21%, CapEx is expected to be ~4–5% of sales, tariffs are called out as a meaningful gross‑margin headwind through the first half of next fiscal year (with mitigation over time), and the company reiterated a roughly 175‑bp cotton tailwind across FY25–26.Ralph Lauren Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
70
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.83B | 7.08B | 6.63B | 6.44B | 6.22B | 4.40B |
| Gross Profit | 5.46B | 4.85B | 4.43B | 4.17B | 4.15B | 2.86B |
| EBITDA | 1.41B | 1.21B | 1.05B | 952.80M | 1.04B | 221.30M |
| Net Income | 918.50M | 742.90M | 646.30M | 522.70M | 600.10M | -121.10M |
Balance Sheet | ||||||
| Total Assets | 7.81B | 7.05B | 6.60B | 6.79B | 7.72B | 7.89B |
| Cash, Cash Equivalents and Short-Term Investments | 2.25B | 2.08B | 1.78B | 1.57B | 2.60B | 2.78B |
| Total Debt | 4.01B | 2.67B | 3.69B | 4.02B | 3.39B | 3.62B |
| Total Liabilities | 4.93B | 4.46B | 4.15B | 4.36B | 5.19B | 5.28B |
| Stockholders Equity | 2.89B | 2.59B | 2.45B | 2.43B | 2.54B | 2.60B |
Cash Flow | ||||||
| Free Cash Flow | 694.50M | 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 | -442.00M | -264.10M | -256.80M | 471.50M | -717.90M | 195.00M |
| Financing Cash Flow | -691.30M | -704.00M | -665.60M | -1.21B | -665.70M | 356.80M |
Ralph Lauren Technical Analysis
Positive
358.59
Price Trends
351.95
Positive
353.65
Positive
327.23
Positive
Market Momentum
-1.50
Negative
56.85
Neutral
85.52
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 358.59 is above the 20-day moving average (MA) of 340.12, above the 50-day MA of 351.95, and above the 200-day MA of 327.23, indicating a bullish trend. The MACD of -1.50 indicates Negative momentum. The RSI at 56.85 is Neutral, neither overbought nor oversold. The STOCH value of 85.52 is Negative, 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 30 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $3.85B | 15.01 | 45.05% | 3.36% | 9.90% | -12.67% | |
69 Neutral | $21.71B | 15.13 | 34.74% | 0.93% | 12.32% | 29.40% | |
62 Neutral | $4.54B | 23.92 | 10.25% | 1.33% | -1.88% | -5.94% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $3.70B | 117.41 | 0.53% | 0.22% | 0.52% | -45.80% | |
60 Neutral | $7.67B | 15.25 | 27.00% | 2.58% | -1.23% | 109.67% | |
53 Neutral | $6.67B | 6.01 | 14.79% | 1.95% | -3.12% | ― |
* Consumer Cyclical Sector Average
RL
Ralph Lauren
358.59
178.36
98.96%
PVH
PVH
80.83
20.45
33.86%
VFC
VF
17.06
7.54
79.24%
LEVI
Levi Strauss & Co
19.65
7.58
62.76%
KTB
Kontoor Brands
69.66
18.90
37.25%
ZGN
Ermenegildo Zegna
10.72
4.64
76.32%
Ralph Lauren Corporate Events
Business Operations and StrategyExecutive/Board Changes
Ralph Lauren Adds Cesar Conde to Board of Directors
Positive
Jan 15, 2026
On January 15, 2026, Ralph Lauren Corporation expanded its Board of Directors to 12 members and appointed Cesar Conde, Chairman of NBCUniversal News Group, as a Class B director, with his term running until the 2026 Annual Meeting of Stockholders ...
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.