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Ralph Lauren Corp Class A RL

Morningstar Rating
$173.45 +3.88 (2.29%)
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Company Report

Ralph Lauren Earnings: Solid Close to Fiscal Year Keeps Margin Gains in Sight; Shares Overvalued

Ralph Lauren's (March-ended) fiscal 2024 fourth-quarter results were slightly above our forecast. While guidance for fiscal 2025 sales growth of 1%-2% is shy of our prior 5% estimate, margin gains should continue. We expect to lift our $139 fair value estimate by a mid-single-digit percentage, but we view shares, up more than 50% over the past year, as expensive.

Price vs Fair Value

RL is trading at a 19% premium.
Price
$173.45
Fair Value
$153.00
Uncertainty
Medium
1-Star Price
$427.16
5-Star Price
$23.60
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Business trends have improved for Ralph Lauren in Europe and Asia, which is advantageous as both regions have higher average unit retail and better growth prospects than the United States.

Bears

Ralph Lauren continues to suffer inconsistent sales results in both its wholesale and retail businesses in North America, its largest market, in the face of competitive pressures and waning retail traffic.

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News

Trading Information

Previous Close Price
$169.57
Day Range
$167.31173.64
52-Week Range
$103.17192.03
Bid/Ask
$173.00 / $173.80
Market Cap
$10.84 Bil
Volume/Avg
1.3 Mil / 1.0 Mil

Key Statistics

Price/Earnings (Normalized)
16.43
Price/Sales
1.70
Dividend Yield (Trailing)
1.73%
Dividend Yield (Forward)
1.90%
Total Yield
5.37%

Company Profile

Founded by designer Ralph Lauren in 1967 in New York City, Ralph Lauren Corp. designs, markets, and distributes lifestyle products in North America, Europe, and Asia. Its products include apparel, footwear, eyewear, jewelry, handbags, home goods, and fragrances. The company's brands include Ralph Lauren Collection, Polo Ralph Lauren, and Lauren Ralph Lauren. Distribution channels for Ralph Lauren include wholesale (department stores and specialty stores), retail (company-owned retail stores and e-commerce), and licensing.
Sector
Consumer Cyclical
Industry
Apparel Manufacturing
Stock Style Box
Mid Core
Total Number of Employees
23,400

Competitors

Valuation

Metric
RL
BOSS
PVH
Price/Earnings (Normalized)
16.4311.3910.44
Price/Book Value
4.382.511.31
Price/Sales
1.700.770.75
Price/Cash Flow
11.814.957.70
Price/Earnings
RL
BOSS
PVH

Financial Strength

Metric
RL
BOSS
PVH
Quick Ratio
1.460.440.55
Current Ratio
2.171.651.18
Interest Coverage
18.2310.509.35
Quick Ratio
RL
BOSS
PVH

Profitability

Metric
RL
BOSS
PVH
Return on Assets (Normalized)
10.09%8.67%5.77%
Return on Equity (Normalized)
27.96%23.91%13.00%
Return on Invested Capital (Normalized)
12.60%14.87%8.28%
Return on Assets
RL
BOSS
PVH
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Morningstar Rating for Stocks
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Market Cap
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HNNMY
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MONRF
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PVH
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GIL
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VFC
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UAA
Under Armour Inc Class AQhnbgxnhdSmdwy$2.9 Bil
UA
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HBI
Hanesbrands IncRsjnzkkhgSsqcl$1.8 Bil

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