Download PDF

1. Company Snapshot

1.a. 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.

Show Full description

1.b. Last Insights on RL

Ralph Lauren's recent performance was driven by solid earnings estimate revisions, indicating potential for continued growth. The company's brand strength, digital expansion, and global momentum have driven investor confidence despite macro headwinds. Its Q1 earnings and revenues surpassed estimates, with revenue rising 14% and EPS beating the Zacks Consensus Estimate. Additionally, the company's North American EBIT trend has reverted, with operating income growing higher than 15% in that region.

1.c. Company Highlights

2. Ralph Lauren's Strong Q2 Results Driven by Global Growth

Ralph Lauren's second-quarter fiscal 2026 results exceeded expectations, driven by broad-based performance across regions and channels. Total company revenue grew 14% to $7.4 billion, with adjusted operating margin expanding 210 basis points to 13.5%. The company's adjusted EPS came in at $3.79, beating estimates of $3.45. Adjusted gross margin expanded 70 basis points to 67.7%, driven by AUR growth, favorable mix shift, and lower cotton costs. AUR increased 12% in the quarter, indicating strong pricing power.

Publication Date: Nov -10

📋 Highlights
  • Revenue Surge Across Key Markets:: Total revenue hit $7.4B (+14%), driven by Asia (+16%) and Europe (+15%), with China outperforming at +30%.
  • Margin Expansion Accelerates:: Adjusted operating margin surged 210 bps to 13.5%, while gross margin expanded 70 bps to 67.7% on AUR growth (+12%) and cost efficiencies.
  • Upgraded Full-Year Guidance:: Revenue outlook raised to 5-7% (vs. low to mid-single digits), with EBIT margin targeting 15-15.5% by 2028.
  • Shareholder Returns Strengthen:: $420M returned via $313M share repurchases and $400M debt retirement, ending with $1.6B cash reserves.
  • China Outperformance & Strategic Shifts:: China revenue +30% (women’s apparel, handbags), with plans to prioritize AUR over unit growth amid cost pressures.

Regional Performance

Regionally, North America revenue grew 13%, with retail comps up 13% and digital comps up 15%. Europe revenue increased 15%, with retail comps up 10% and wholesale up 18%. Asia revenue and retail comps each grew 16%, led by China, up more than 30%. The company's diversified global presence is driving growth, with a strong performance in key markets.

Outlook and Guidance

The company raised its full-year outlook, expecting high single-digit AUR growth in the second half. Regionally, North America revenues are expected to be up slightly for the full year, versus a low single-digit decline previously. Europe is expected to grow at the high end of mid-single digits, while Asia is expected to be up high single to low double digits. Operating margin is expected to expand 60-80 basis points in constant currency, driven by expense leverage.

Valuation and Metrics

With a P/E Ratio of 24.92 and an EV/EBITDA of 16.31, the company's valuation appears reasonable given its strong growth prospects. The company's ROE of 31.52% and ROIC of 12.78% indicate strong profitability. Analysts estimate next year's revenue growth at 10.4%, suggesting a positive outlook for the company's future performance.

Operational Highlights

The company is focused on investing in key strategic pillars, including brand building activations, product offering, and distribution opportunities. The company is taking a conservative approach in North America but has been outperforming expectations to date. The company's global sourcing supply chain is well-positioned, with diversified partnerships and alternate sourcing capabilities.

China Performance

In China, the company grew over 30% in the quarter, driven by strong performance in women's apparel and handbags. The company stands by its guidance of low double-digit growth in China for the year and is confident in its ability to continue building strong performance in the market. The company plans to expand its digital platform and footprint in China, leveraging social commerce and clienteling.

3. NewsRoom

Card image cap

4 Discretionary Stocks to Buy on Rising Hopes of a December Rate Cut

Dec -04

Source: zacks.com

Card image cap

The Zacks Analyst Blog Crocs, On Holding, Ralph Lauren, Kontoor and Boot Barn

Nov -28

Source: zacks.com

Card image cap

American Century Companies Inc. Sells 31,291 Shares of Ralph Lauren Corporation $RL

Nov -28

Source: defenseworld.net

Card image cap

5 Women-Run Companies Reshaping Portfolios With Consistent Growth

Nov -26

Source: zacks.com

Card image cap

Buy 5 Apparel & Shoes Stocks to Kick Off Your Black Friday Shopping

Nov -26

Source: zacks.com

Card image cap

4 GARP Stocks That Investors Can Scoop Up for Maximum Returns

Nov -18

Source: zacks.com

Card image cap

Ralph Lauren Introduces Latest Artists in Residence with Polo Ralph Lauren x TÓPA Collaboration

Nov -18

Source: businesswire.com

Card image cap

Banco Bilbao Vizcaya Argentaria S.A. Has $4.07 Million Position in Ralph Lauren Corporation $RL

Nov -16

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.98%)

6. Segments

North America

Expected Growth: 4.0%

Ralph Lauren's 4.0% growth in North America is driven by strong brand recognition, increased online sales, and strategic wholesale partnerships. The region's recovering economy and consumer spending also contribute to growth. Additionally, the company's focus on digital marketing, product innovation, and targeted promotions have helped to drive sales and expand market share.

Europe

Expected Growth: 3.8%

Ralph Lauren's 3.8% growth in Europe is driven by a strong brand reputation, increased tourism, and a growing demand for luxury goods. The region's economic recovery, coupled with the company's strategic investments in e-commerce and digital marketing, have also contributed to this growth. Additionally, the brand's focus on sustainability and diversity has resonated with European consumers, further boosting sales.

Asia

Expected Growth: 4.2%

Asia's 4.2% growth for Ralph Lauren Corporation is driven by increasing brand awareness, expanding e-commerce presence, and strategic partnerships. Growing middle-class populations in China, Japan, and South Korea are driving demand for luxury goods. Additionally, the company's focus on digital marketing and social media is resonating with Asian consumers, contributing to the region's growth.

Other Non-reportable Segments

Expected Growth: 3.5%

Ralph Lauren's Other Non-reportable Segments' 3.5% growth is driven by strategic brand extensions, increased licensing agreements, and expansion into new markets. Additionally, the company's focus on digital transformation, e-commerce growth, and operational efficiencies have contributed to this growth. Furthermore, the segment has benefited from the company's efforts to optimize its supply chain and improve product offerings.

7. Detailed Products

Polo Shirts

Classic, high-quality polo shirts with the iconic Polo logo, available in a range of colors and styles for men, women, and children.

Dress Shirts

Luxurious, high-quality dress shirts with a focus on comfort, style, and attention to detail, available in a range of fabrics and styles.

Denim

High-quality denim jeans, jackets, and shorts for men and women, with a focus on comfort, style, and durability.

Outerwear

Luxurious, high-quality outerwear, including coats, jackets, and blazers, designed to keep you warm and stylish.

Dresses

Elegant, high-quality dresses for women, available in a range of styles, fabrics, and colors.

Accessories

High-quality accessories, including hats, scarves, belts, and bags, designed to complement Ralph Lauren's clothing lines.

Home Furnishings

Luxurious, high-quality home furnishings, including bedding, towels, and decorative items, designed to bring the Ralph Lauren style into your home.

Fragrances

High-quality fragrances for men and women, designed to evoke the essence of the Ralph Lauren lifestyle.

8. Ralph Lauren Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Ralph Lauren Corporation faces moderate threat from substitutes, as consumers have various alternatives for luxury apparel and accessories. However, the brand's strong reputation and quality products mitigate this threat to some extent.

Bargaining Power Of Customers

Ralph Lauren Corporation's customers have relatively low bargaining power due to the company's strong brand image and premium pricing strategy. This limits customers' ability to negotiate prices or demand customized products.

Bargaining Power Of Suppliers

Ralph Lauren Corporation's suppliers have moderate bargaining power, as the company relies on a diverse range of suppliers for raw materials and manufacturing services. However, the company's scale and reputation help maintain a balance of power.

Threat Of New Entrants

The luxury apparel and accessories market has high barriers to entry, making it challenging for new entrants to compete with established brands like Ralph Lauren Corporation. The company's strong brand recognition and distribution network also deter new entrants.

Intensity Of Rivalry

The luxury apparel and accessories market is highly competitive, with numerous established brands competing for market share. Ralph Lauren Corporation faces intense rivalry from brands like Gucci, Prada, and Louis Vuitton, which can lead to pricing pressures and advertising wars.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 36.45%
Debt Cost 3.95%
Equity Weight 63.55%
Equity Cost 11.75%
WACC 8.91%
Leverage 57.35%

11. Quality Control: Ralph Lauren Corporation passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Ralph Lauren

A-Score: 5.6/10

Value: 2.6

Growth: 6.1

Quality: 6.7

Yield: 3.0

Momentum: 8.5

Volatility: 6.7

1-Year Total Return ->

View Full Report
Stock-Card
Kontoor Brands

A-Score: 5.1/10

Value: 3.9

Growth: 4.0

Quality: 5.8

Yield: 7.0

Momentum: 5.0

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
Columbia Sportswear

A-Score: 4.6/10

Value: 5.6

Growth: 5.6

Quality: 6.2

Yield: 3.0

Momentum: 1.0

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
Albany International

A-Score: 4.1/10

Value: 4.4

Growth: 4.9

Quality: 4.9

Yield: 3.0

Momentum: 2.0

Volatility: 5.3

1-Year Total Return ->

View Full Report
Stock-Card
PVH

A-Score: 4.0/10

Value: 7.3

Growth: 4.3

Quality: 5.1

Yield: 0.0

Momentum: 3.5

Volatility: 4.0

1-Year Total Return ->

View Full Report
Stock-Card
Under Armour

A-Score: 3.4/10

Value: 7.6

Growth: 2.1

Quality: 5.1

Yield: 0.0

Momentum: 1.5

Volatility: 4.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

368.1$

Current Price

368.1$

Potential

-0.00%

Expected Cash-Flows