Ralph Lauren Corporation is an American fashion company producing products ranging from the mid-range to the luxury segments. They are known for the clothing, marketing and distribution of products in four categories: apparel, home, accessories, and fragrances.
| Revenue (TTM) | $8.11B |
| Gross Profit (TTM) | $5.67B |
| EBITDA | $1.52B |
| Operating Margin | 13.40% |
| Return on Equity | 34.70% |
| Return on Assets | 10.90% |
| Revenue/Share (TTM) | $133.03 |
| Book Value | $47.28 |
| Price-to-Book | 7.96 |
| Price-to-Sales (TTM) | 2.77 |
| EV/Revenue | 2.903 |
| EV/EBITDA | 16.08 |
| Quarterly Earnings Growth (YoY) | 20.00% |
| Quarterly Revenue Growth (YoY) | 16.60% |
| Shares Outstanding | $37.64M |
| Float | $37.18M |
| % Insiders | 2.54% |
| % Institutions | 107.92% |
Volatility is currently expanding
Ralph Lauren is rated hold as valuation approaches luxury peers, with shares up 9.5% YTD and trading at 19x forward earnings. Growth in Asia, particularly China, and women's apparel expansion are key drivers, but further evidence of sustainable execution is needed. Consensus estimates for the upcoming quarter are bullish, with $1.8bn revenue, $4.29 EPS, and a 73% gross margin expected.
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This year, as the market is preoccupied with how the Iran war is propping up the energy sector and how the memory chip shortage has been driving the AI rally, there has been little focus on consumer discretionary stocks' underperformance.
Here is how Ralph Lauren (RL) and Rush Street Interactive, Inc. (RSI) have performed compared to their sector so far this year.
RL is driving growth through women's apparel, outerwear and handbags, with premium categories supporting higher average selling prices.
RL's premium strategy, digital expansion and strong consumer demand fuel a sharp stock rally and strengthen its growth outlook.
RL's 36% rally reflects strong brand momentum, DTC gains and Asia growth, but premium valuation and macro risks may favor patience.
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The GARP strategy helps investors gain exposure to stocks that have solid prospects and are trading at a discount. RL, EAT, AMP and WFRD are some such stocks.
Ralph Lauren (RL) is well positioned to outperform the market, as it exhibits above-average growth in financials.
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