Ralph Lauren (RL) AI Stock Analysis

• Market Cap: $20.30B
• Dividend Yield: 1.05%
• Average Volume (3M): 566.89K
• Price to Earnings (P/E): 26.7
• Beta (1Y): 1.13
• 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: 432,995
• 30 Day Avg. Volume: 566,894
• PEG Ratio: 0.92
• Price to Book (P/B): 5.22
• Price to Sales (P/S): 1.91
• P/FCF Ratio: 13.25
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 2.50
• Enterprise Value/Gross Profit: 3.63
• Enterprise Value/Ebitda: 14.27
• 1Y Price Target: $360.21
• Price Target Upside: 8.46% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

• Rating: 81 Outperform
• Price Target: $387.00 ▲(16.52% Upside)

Ralph Lauren's strong earnings performance and positive technical indicators are the most significant factors driving the score. While valuation is moderate, the company's strategic initiatives and raised guidance provide a positive outlook. Potential tariff impacts are a minor concern.

Positive Factors

Revenue Growth

Ralph Lauren's consistent revenue growth across multiple regions indicates strong market demand and effective global strategies, supporting long-term business expansion.

Margin Improvement

Improved margins from stronger full-price selling and reduced discounting enhance profitability, indicating efficient cost management and pricing power.

Strategic Growth Plan

The strategic growth plan with a focus on expanding revenue and margins reflects a clear vision for sustainable long-term growth and operational efficiency.

Negative Factors

Cash Flow Concerns

A decline in free cash flow growth suggests potential challenges in cash generation, which could impact the company's ability to invest in growth initiatives.

Inventory Management

Rising inventory levels may indicate inefficiencies in inventory management, potentially leading to increased holding costs and reduced cash flow.

Tariff-Related Pressures

Tariff-related pressures could impact consumer demand and cost structures, posing a risk to revenue and margin stability in affected regions.

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 2025	Dec 2024	Dec 2024	Dec 2023
Income Statement
Total Revenue	7.29B	7.08B	7.08B	6.63B	6.63B	6.44B
Gross Profit	5.03B	4.85B	4.85B	4.43B	4.43B	4.17B
EBITDA	1.28B	1.21B	1.21B	1.05B	1.05B	952.80M
Net Income	794.70M	742.90M	742.90M	646.30M	646.30M	522.70M
Balance Sheet
Total Assets	7.75B	7.05B	7.05B	6.60B	6.60B	6.79B
Cash, Cash Equivalents and Short-Term Investments	2.28B	2.08B	2.08B	1.78B	1.78B	1.57B
Total Debt	3.24B	2.67B	2.67B	2.68B	2.68B	2.88B
Total Liabilities	5.24B	4.46B	4.46B	4.15B	4.15B	4.36B
Stockholders Equity	2.52B	2.59B	2.59B	2.45B	2.45B	2.43B
Cash Flow
Free Cash Flow	763.80M	1.02B	1.02B	904.90M	904.90M	193.50M
Operating Cash Flow	1.13B	1.24B	1.24B	1.07B	1.07B	411.00M
Investing Cash Flow	-374.80M	-264.10M	-264.10M	-256.80M	-256.80M	471.50M
Financing Cash Flow	-336.30M	-704.00M	-704.00M	-665.60M	-665.60M	-1.21B

Ralph Lauren Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 332.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 332.12 is above the 20-day moving average (MA) of 320.48, above the 50-day MA of 309.62, and above the 200-day MA of 268.49, indicating a bullish trend. The MACD of 5.85 indicates Negative momentum. The RSI at 61.97 is Neutral, neither overbought nor oversold. The STOCH value of 85.28 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
RL	81 Outperform	$20.30B	26.74	32.55%	1.05%	9.61%	21.14%
KTB	71 Outperform	$4.70B	18.85	58.07%	2.47%	3.47%	5.86%
ZGN	71 Outperform	$4.30B	25.73	10.58%	1.39%	-1.88%	-5.94%
LEVI	71 Outperform	$8.39B	18.30	25.99%	2.54%	3.20%	200.49%
PVH	69 Neutral	$3.95B	9.20	9.32%	0.18%	-1.14%	-29.30%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
VFC	46 Neutral	$5.97B	70.35	7.83%	2.35%	-7.41%	―

Ralph Lauren Corporate Events

Ralph Lauren Unveils Strategic Growth Plan in NYC

On September 16, 2025, Ralph Lauren Corporation hosted an investor meeting in New York City to present its updated strategic growth plan, ‘Next Great Chapter: Drive,’ aimed at delivering sustainable long-term growth and value creation. The company outlined its three-year financial outlook, expecting revenue to grow at a mid-single-digit compound annual rate and plans to return at least $2 billion in excess free cash flow to shareholders by fiscal 2028. The strategic plan focuses on elevating the lifestyle brand, expanding core products, and winning in key cities, supported by strengthened core capabilities and a robust balance sheet.

The most recent analyst rating on (RL) stock is a Buy with a $350.00 price target. To see the full list of analyst forecasts on Ralph Lauren stock, see the RL Stock Forecast page.

Ralph Lauren Surpasses Expectations, Raises Outlook

Ralph Lauren Corporation, a global leader in luxury lifestyle products, designs, markets, and distributes apparel, footwear, accessories, home, fragrances, and hospitality items, renowned for its timeless style and authenticity. In its first quarter of Fiscal 2026, Ralph Lauren reported a 14% increase in revenue, surpassing expectations, with strong performance across all geographies. The company also raised its full-year outlook, reflecting confidence in its strategic priorities and brand strength. Key financial highlights include a 35% increase in earnings per diluted share, a 13% growth in global direct-to-consumer comparable store sales, and a robust balance sheet with $2.3 billion in cash and short-term investments. The company also returned $300 million to shareholders through dividends and stock repurchases. Looking ahead, Ralph Lauren remains cautious about the global operating environment but is optimistic about its ability to execute long-term strategic priorities, including expanding its consumer base and strengthening key categories.

Ralph Lauren’s Strong Q1 and Cautious Outlook

Ralph Lauren’s recent earnings call painted a picture of robust performance and cautious optimism. The company reported a strong first-quarter performance, surpassing expectations with significant growth in international markets and new customer acquisition. However, there was a note of caution regarding the second half of the year due to potential macroeconomic and tariff-related pressures.

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.