Ralph Lauren Corporation (RL)
Consumer Discretionary · $20.7B market cap · SEC CIK 0001037038
fundamentals score out of 100
Next reports on Nov 4, 2026, with analysts expecting $4.35 in earnings per share.
The case for RL
- Earns 36% back on shareholder equity.
- Holds more cash ($2.0B) than long-term debt ($1.2B).
- Revenue growing 14.7% year over year.
- Earnings per share up 26.6%.
- A PEG of 0.79: a P/E of 21.0× is low for EPS growing 27%.
- Has compounded revenue at 13.0% a year over five years.
The case against
- The price trend is weak (39/100): +8.8% over a year, -17.7% over three months, 38% of the way up its 52-week range.
- Weakest against its peers: P/E of 21.0× is higher than 59% of Consumer Discretionary companies.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Consumer Discretionary companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 49 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 73 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 75 |
| Momentumhow the price has behaved lately | 39 |
| Stabilityhow violently it moves, what it owes and what it pays you | 70 |
- Each factor except momentum is half fixed thresholds, half rank among the 48 Consumer Discretionary companies.
Key numbers
| Price / earnings | 21.0× |
|---|---|
| Price / book | 8.70× |
| Price / sales | 2.5× |
| Revenue growth (YoY) | +14.7% |
| EPS growth (YoY) | +26.6% |
| Gross margin | 70% |
| Operating margin | 15% |
| Net margin | 12% |
| Return on equity | 36% |
| Debt / equity | 0.54× |
| Current ratio | 2.04 |
| Dividend yield | 2.41% |
| Beta | 1.35 |
| 52-week range | $299.98 – $421.60 |
| Position in that range | 38% of the way up |
| 3-month return | -17.7% |
| 1-year return | +8.8% |
Five years of financials, as filed
Pulled from Ralph Lauren Corporation's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $8.1B | $7.1B | $6.6B | $6.4B | $6.2B |
| Gross profit | $5.7B | $4.9B | $4.4B | $4.2B | $4.1B |
| Operating income | $1.2B | $932M | $756M | $704M | $798M |
| Net income | $941M | $743M | $646M | $523M | $600M |
| Operating cash flow | $1.2B | $1.2B | $1.1B | $411M | $716M |
| Capital expenditure | — | $216M | $165M | $218M | $167M |
| Total assets | $7.8B | $7.1B | $7.0B | $7.0B | $8.1B |
| Total liabilities | $4.9B | $4.5B | $4.4B | $4.6B | $5.4B |
| Shareholder equity | $2.9B | $2.5B | $2.6B | $2.5B | $2.7B |
| Cash | $2.0B | $1.9B | $1.8B | $1.6B | $2.3B |
| Long-term debt | $1.2B | $743M | $1.1B | $1.1B | $1.1B |
| Free cash flow | — | $1.0B | $905M | $194M | $549M |
| Gross margin | 69.9% | 68.6% | 66.8% | 64.7% | 66.7% |
| Operating margin | 14.5% | 13.2% | 11.4% | 10.9% | 12.8% |
| Net margin | 11.6% | 10.5% | 9.7% | 8.1% | 9.7% |
| Diluted shares | 62.3M | 64.0M | 66.5M | 69.0M | 74.3M |
Share count is down 16.2% over 4 years. Buybacks have been shrinking the pie.
What Ralph Lauren Corporation says it does
Founded in 1967 by Mr. Ralph Lauren, we are a global leader in the design, marketing, and distribution of luxury lifestyle products, including apparel, handbags, footwear & accessories, fragrances, home, and hospitality. For nearly 60 years, Ralph Lauren has sought to inspire the dream of a better life through authenticity and timeless style. Our long-standing reputation and distinctive image have been developed across a wide range of products, brands, distribution channels, and international markets. We believe that our global reach, breadth of lifestyle product offerings, and multi-channel distribution network are unique among luxury and apparel companies. We diversify our business by geography (North America, Europe, and Asia, among other regions) and channel of distribution (retail, wholesale, and licensing). This allows us to maintain a dynamic balance as our operating results do not depend solely on the performance of any single…
Risk factors RL lists in its 10-K
- Risks Related to Macroeconomic Conditions
- Economic conditions could have a negative impact on our major customers, suppliers, vendors, and lenders, which in turn could materially adversely affect our business
- Our business is exposed to domestic and foreign currency fluctuations
- Infectious disease outbreaks could have a material adverse effect on our business
- Risks Related to our Strategic Initiatives and Restructuring Activities
- We cannot assure the successful implementation of our growth strategy
- Business — Objectives and Opportunities
- We may not be successful in the expansion of our multi-channel distribution network or accelerating growth in certain product categories
- Our profitability may decline if we are unable to effectively manage inventory or as a result of increasing pressure on margins
- We may not fully realize the expected cost savings and/or operating efficiencies from our restructuring plans
- Risks Related to our Business and Operations
- The loss of the services of Mr. Ralph Lauren or any other changes to our executive and senior management team may be disruptive to, or cause uncertainty in, our business
- Our business is subject to risks associated with importing products and the ability of our manufacturers to produce our goods on time and to our specifications
- Our business could suffer if we need to replace manufacturers or distribution centers