Ralph Lauren Corporation (RL)

Consumer Discretionary · $23.7B market cap · SEC CIK 0001037038

Next reports on Feb 3, 2027, with analysts expecting $7.13 in earnings per share.

52-week range $315.72 to $421.60. 5% below its 52-week high and 27% above its low.

The case for RL

• Earns 38% back on shareholder equity.
• Holds more cash ($2.0B) than long-term debt ($1.2B).
• Revenue growing 12.8% year over year.
• Earnings per share up 28.6%.
• Reasonably priced for its growth: 22.1× earnings, where 13% a year of growth plus a 2.4% dividend would justify about 31×.
• Has compounded revenue at 13.0% a year over five years.

The case against

• Weakest against its peers: price/sales of 2.8× is higher than 57% 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. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.

• Capital spending is missing from its filings, so free cash flow cannot be worked out. Operating cash flow stands in for the cash test, against a stricter bar.
• Each factor except momentum is half fixed thresholds, half rank among the 48 Consumer Discretionary companies.

The financials

The financials, five years deep

Pulled from Ralph Lauren Corporation's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.

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

• 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
• 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
• 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
• We face intense competition worldwide in the markets in which we operate
• The success of our business depends on our ability to retain the value and reputation of our brands
• Our trademarks and other intellectual property rights may not be adequately protected outside the U.S
• Our business is subject to risks related to leasing real estate and other assets under long-term, non-cancellable leases
• Business — Wholesale Credit Control
• We have a substantial amount of indebtedness which could restrict our ability to engage in additional capital-related transactions in the future
• We rely on our licensing partners to preserve the value of our licenses. Failure to maintain licensing partners could harm our business
• Our business could be adversely affected by man-made or natural disasters and other catastrophic events in the locations in which we or our customers or suppliers operate
• A data security or privacy breach could damage our reputation and our relationships with our customers or employees, expose us to litigation risk, and adversely affect our business
• Our business could suffer if our computer systems and websites are disrupted or cease to operate effectively
• Our use and integration of artificial intelligence across our business presents risks and challenges that could adversely affect our business
• Our business could suffer if we fail to meet our global citizenship and sustainability goals or if such goals do not meet the expectations of our stakeholders
• Climate change, or our ability to adhere to any legislation and regulatory requirements related to climate change, traceability and transparency, product labeling, or other sustainability matters may adversely affect our business
• Our ability to conduct business globally may be affected by a variety of legal, regulatory, political, and economic risks
• Fluctuations in our tax obligations and effective tax rate may result in volatility of our operating results
• Our business could suffer if we fail to comply with labor laws or if one of our manufacturers fails to use acceptable labor or environmental practices
• Certain legal proceedings, regulatory matters, and accounting changes could adversely affect our business
• The trading prices of our securities periodically may rise or fall based on the accuracy of predictions of our earnings or other financial performance, including our ability to return value to shareholders
• The voting shares of our Company's stock are concentrated in one majority stockholder

Filings

Other Consumer Discretionary companies