# Ralph Lauren (RL.US)

Canonical: https://gigainvestors.com/s/RL

Analysis as of: 2026-10-16T07:31:36.158Z. Financial observations: FY1997–FY2027.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $391.07 per share; close as of 2026-10-15.

Estimated value: low $187.76 per share, central $209.66 per share, high $238.81 per share. Buy at or below the central value $209.66 per share. Valuation as of 2026-10-16T07:31:36.158Z; scenarios are not confidence intervals.

Expected annual return: 6.4% at the stated quote. About 6.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 1

- Operating margin variation: 0.47×

Chart: Operating margin; fiscal year observations.

- FY2018: 0.08×

- FY2019: 0.09×

- FY2020: 0.05×

- FY2021: -0.01×

- FY2022: 0.13×

- FY2023: 0.11×

- FY2024: 0.11×

- FY2025: 0.13×

- FY2026: 0.15×

- LTM to Jun 2026: 0.15×

### moat: fail

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 21.0%

- ROIC, second-lowest year: -1.4%

- Typical minus recent gross margin: -3.7 pp

- Typical gross margin (annual median): 64.8%

- Recent gross margin (lower of latest and 3-year median): 68.6%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.1%

- ROIC including acquisitions, ten-year median: 14.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: -3.8%

- FY2018: 23.9%

- FY2019: 38.1%

- FY2020: 11.0%

- FY2021: -1.4%

- FY2022: 26.2%

- FY2023: 13.3%

- FY2024: 18.1%

- FY2025: 31.9%

- FY2026: 32.9%

### economics: pass

- Owner earnings / net income, 5-yr: 1.04×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $3.6B

- Net income, five-year total: $3.5B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.3 pp

- Working capital / revenue, change between three-year averages: -2.7 pp

- Working capital / revenue, final three-year average: 16.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.10×

- FY2023: 1.01×

- FY2024: 1.10×

- FY2025: 1.00×

- FY2026: 1.00×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 23.9% vs 31.9%

- Per-share earnings: 1.97 to 11.61 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -3.2%

- Ordinary dilution, 5-year annual growth: -3.3%

- Market cap gain: $15B

- Cumulative retained earnings: $2.6B

- Diluted shares, 10-year annual growth: -3.2%

- Diluted shares, 5-year annual growth: -3.3%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 24.8%

- Per-share value change: $9.63

- Per-share value, starting three-year median: $1.97

- Per-share value, ending three-year median: $11.61

- Buybacks concentrated in cheaper years (correlation): 0.81

- Average buyback yield: 4.4%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $60M

- Cumulative net income, 10 years: $4.2B

- ROIC, first three-year median: 23.9%

- ROIC, last three-year median: 31.9%

Chart: Earnings per share; fiscal year observations.

- FY2017: -$1.20

- FY2018: $1.97

- FY2019: $5.27

- FY2020: $4.98

- FY2021: -$1.65

- FY2022: $8.08

- FY2023: $7.58

- FY2024: $9.72

- FY2025: $11.61

- FY2026: $15.11

### accounting: pass

- Sloan accruals: -3.3%

- Receivables to sales index (DSRI): 0.97×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 9.6%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.23×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.35×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -18.6%

- FY2018: -13.2%

- FY2019: -5.9%

- FY2020: -5.1%

- FY2021: -6.4%

- FY2022: -1.5%

- FY2023: 1.6%

- FY2024: -6.4%

- FY2025: -7.0%

- FY2026: -3.3%

## Holders

## Price story

Price needs cash profits to grow 9.6% a year for ten years · "China drives Ralph Lauren sales to surpass $8bn in FY26" (finance.yahoo.com, May 2026) · sales +3%

Story as of 2026-10-16T09:59:30.467Z; price observation 2026-10-15.

Price needs cash profits to grow 9.6% a year for ten years

- 2025-05-22: Ralph Lauren Rises On Earnings, Expects 'Modest' Margin Expansion ([finance.yahoo.com](https://finance.yahoo.com/m/2c4bf7a8-94c3-38f9-98ae-bbdc283d47b8/ralph-lauren-rises-on.html))

- 2025-09-16: Ralph Lauren Introduces 3-Year Financial Guidance; Shares Fall Pre-Bell ([finance.yahoo.com](https://finance.yahoo.com/news/ralph-lauren-introduces-3-financial-132505105.html))

- 2025-11-07: Ralph Lauren posts 40% Q2 profit jump and raises 2026 margin outlook ([finance.yahoo.com](https://finance.yahoo.com/news/ralph-lauren-posts-40-q2-100844480.html))

- 2026-02-09: Ralph Lauren lifts FY26 outlook following strong holiday sales growth ([finance.yahoo.com](https://finance.yahoo.com/news/ralph-lauren-lifts-fy26-outlook-111814723.html))

- 2026-05-22: China drives Ralph Lauren sales to surpass $8bn in FY26 ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/china-drives-ralph-lauren-sales-165720132.html))

- 2026-06-03: Ralph Lauren Revenue Milestone Highlights China Growth And Customization Push ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/ralph-lauren-revenue-milestone-highlights-111240644.html))

### Sales · FY2026–2027

sales +3%; source https://www.sec.gov/Archives/edgar/data/1037038/000162828026037074/rl-20260328.htm; observed 2026-05-21.

- FY2018: $6.2B 

- FY2019: $6.3B 

- FY2020: $6.2B 

- FY2021: $4.4B 

- FY2022: $6.2B 

- FY2023: $6.4B 

- FY2024: $6.6B 

- FY2025: $7.1B 

- FY2026: $8.1B 

- FY2027: $8.4B 

### Gross margin · FY2026

gross margin 69.9%; source https://www.sec.gov/Archives/edgar/data/1037038/000162828026037074/rl-20260328.htm; observed 2026-05-21.

- FY2017: 54.9% 

- FY2018: 60.7% 

- FY2019: 61.6% 

- FY2020: 59.3% 

- FY2021: 65.0% 

- FY2022: 66.7% 

- FY2023: 64.7% 

- FY2024: 66.8% 

- FY2025: 68.6% 

- FY2026: 69.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in apparel manufacturing; annual sales are USD 8.1 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-21); FY2026: revenue 8114500000; grossProfit 5669200000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RL.US: 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 comprising handbags, luggage, small leather goods, and belts; home products, such as bed and bath lines, furniture, fabric and wall coverings, lighting, dining, floor coverings, decorative accessories, and giftware; and fragrances. The company sells apparel and accessories under the Ralph Lauren Collection, Ralph Lauren Purple Label, Polo Ralph Lauren, Double RL, Lauren Ralph Lauren, 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 Ralph's Club, Purple Label, Polo Blue, Polo Red, Polo Green, Polo Black, Polo 67, Safari, Polo Sport, and Big Pony Men's brand names. Its 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; Ralph's Bar located in Chengdu, China; and Ralph's Coffee concept. The company 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. It operates retail stores and concession-based shop-within-shops; and operates Ralph Lauren stores and shops through licensing partners. Ralph Lauren Corporation was founded in 1967 and is based in New York, New York.

### Why customers stay

Margins ranged from 66.8% to 69.9% during 2024–26; it earns 21% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-21); FY2024: grossProfit / revenue = 66.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-21); FY2025: grossProfit / revenue = 68.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-21); FY2026: grossProfit / revenue = 69.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-21); 10-year return on capital observations [[2017,-0.038302778799180544],[2018,0.2389889298892989],[2019,0.3807488139918489],[2020,0.10975694204002492],[2021,-0.013701965152358978],[2022,0.26228197393067837],[2023,0.13336812371486534],[2024,0.18131113805563048],[2025,0.3187455733335466],[2026,0.32948657292592165]]; median 0.21015003397246468. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 18.6% of cash earnings on expansion; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-21); FY2018: growth capex 0; upkeep 161600000; owner earnings 296400000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-21); FY2019: growth capex 0; upkeep 197700000; owner earnings 514500000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-21); FY2020: growth capex 0; upkeep 270300000; owner earnings 383500000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-21); FY2021: growth capex 0; upkeep 107800000; owner earnings 18700000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-21); FY2022: growth capex 0; upkeep 166900000; owner earnings 662900000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-21); FY2023: growth capex 0; upkeep 217500000; owner earnings 525700000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-21); FY2024: growth capex 0; upkeep 164800000; owner earnings 710500000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-21); FY2025: growth capex 0; upkeep 216200000; owner earnings 746300000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-21); FY2026: growth capex 175100000; upkeep 233000000; owner earnings 941100000. Growth capex / owner earnings = 0.18605886728296675.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-21); Dividend observations: [[2017,164800000],[2018,162400000],[2019,190700000],[2020,203900000],[2021,49800000],[2022,150000000],[2023,198300000],[2024,194600000],[2025,201100000],[2026,216500000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-21); FY2026: cash repurchases 623800000 USD.

### Are managers owners

Insiders own 2.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RL.US SharesStats.PercentInsiders = 2.541 percentage points; cache date 2026-10-16.

### What could break it

"Our business could suffer if we need to replace manufacturers or distribution centers." (SEC filing, May 2026)

- Source: https://www.sec.gov/Archives/edgar/data/1037038/000162828026037074/rl-20260328.htm (filed 2026-05-21); Our business could suffer if we need to replace manufacturers or distribution centers.

### What the price says

The price assumes cash profits grow 9.6% yearly over ten years; actual growth was 16.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-21); Ten-year compound average after fade. Initial solved rate 0.1255910022396466. Price 391.07; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 3.352735739231665 → FY2026 15.10593900481541. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $98.10 per share

- 2016-11: $104.61 per share

- 2016-12: $90.32 per share

- 2017-01: $88.43 per share

- 2017-02: $79.33 per share

- 2017-03: $81.62 per share

- 2017-04: $80.72 per share

- 2017-05: $67.80 per share

- 2017-06: $73.80 per share

- 2017-07: $75.65 per share

- 2017-08: $87.89 per share

- 2017-09: $88.29 per share

- 2017-10: $89.43 per share

- 2017-11: $95.15 per share

- 2017-12: $103.69 per share

- 2018-01: $114.31 per share

- 2018-02: $105.84 per share

- 2018-03: $111.80 per share

- 2018-04: $109.85 per share

- 2018-05: $134.58 per share

- 2018-06: $125.72 per share

- 2018-07: $134.98 per share

- 2018-08: $132.81 per share

- 2018-09: $137.55 per share

- 2018-10: $129.61 per share

- 2018-11: $111.40 per share

- 2018-12: $103.46 per share

- 2019-01: $116.14 per share

- 2019-02: $125.17 per share

- 2019-03: $129.68 per share

- 2019-04: $131.58 per share

- 2019-05: $105.13 per share

- 2019-06: $113.59 per share

- 2019-07: $104.23 per share

- 2019-08: $88.34 per share

- 2019-09: $95.47 per share

- 2019-10: $96.06 per share

- 2019-11: $107.34 per share

- 2019-12: $117.22 per share

- 2020-01: $113.50 per share

- 2020-02: $105.51 per share

- 2020-03: $66.83 per share

- 2020-04: $73.78 per share

- 2020-05: $75.51 per share

- 2020-06: $72.52 per share

- 2020-07: $71.30 per share

- 2020-08: $68.83 per share

- 2020-09: $67.97 per share

- 2020-10: $66.85 per share

- 2020-11: $85.75 per share

- 2020-12: $103.74 per share

- 2021-01: $101.05 per share

- 2021-02: $117.08 per share

- 2021-03: $123.16 per share

- 2021-04: $133.29 per share

- 2021-05: $124.08 per share

- 2021-06: $117.81 per share

- 2021-07: $113.52 per share

- 2021-08: $116.13 per share

- 2021-09: $111.04 per share

- 2021-10: $127.17 per share

- 2021-11: $116.04 per share

- 2021-12: $118.86 per share

- 2022-01: $110.84 per share

- 2022-02: $132.04 per share

- 2022-03: $113.44 per share

- 2022-04: $104.34 per share

- 2022-05: $101.09 per share

- 2022-06: $89.65 per share

- 2022-07: $98.63 per share

- 2022-08: $91.33 per share

- 2022-09: $84.93 per share

- 2022-10: $92.69 per share

- 2022-11: $113.12 per share

- 2022-12: $105.67 per share

- 2023-01: $123.85 per share

- 2023-02: $118.19 per share

- 2023-03: $116.67 per share

- 2023-04: $114.79 per share

- 2023-05: $106.31 per share

- 2023-06: $123.30 per share

- 2023-07: $131.33 per share

- 2023-08: $116.63 per share

- 2023-09: $116.09 per share

- 2023-10: $112.53 per share

- 2023-11: $129.38 per share

- 2023-12: $144.20 per share

- 2024-01: $143.67 per share

- 2024-02: $185.92 per share

- 2024-03: $187.76 per share

- 2024-04: $163.64 per share

- 2024-05: $186.88 per share

- 2024-06: $175.06 per share

- 2024-07: $175.59 per share

- 2024-08: $171.26 per share

- 2024-09: $193.87 per share

- 2024-10: $197.93 per share

- 2024-11: $231.40 per share

- 2024-12: $230.98 per share

- 2025-01: $249.70 per share

- 2025-02: $271.14 per share

- 2025-03: $220.74 per share

- 2025-04: $224.95 per share

- 2025-05: $276.81 per share

- 2025-06: $274.28 per share

- 2025-07: $298.75 per share

- 2025-08: $296.93 per share

- 2025-09: $313.56 per share

- 2025-10: $319.66 per share

- 2025-11: $367.33 per share

- 2025-12: $353.61 per share

- 2026-01: $353.41 per share

- 2026-02: $362.60 per share

- 2026-03: $343.99 per share

- 2026-04: $358.64 per share

- 2026-05: $363.90 per share

- 2026-06: $401.41 per share

- 2026-07: $380.34 per share

- 2026-08: $346.90 per share

- 2026-09: $355.07 per share

- 2026-10: $391.07 per share

## Annual estimated value (USD per share)

- FY2017: low $87.62 per share, central $97.67 per share, high $111.05 per share

- FY2018: low $62.06 per share, central $67.48 per share, high $74.68 per share

- FY2019: low $63.27 per share, central $68.86 per share, high $76.29 per share

- FY2020: low $67.63 per share, central $73.40 per share, high $81.07 per share

- FY2021: low $67.95 per share, central $72.28 per share, high $78.04 per share

- FY2022: low $90.25 per share, central $98.10 per share, high $108.56 per share

- FY2023: low $104.01 per share, central $115.48 per share, high $130.75 per share

- FY2024: low $113.75 per share, central $126.01 per share, high $142.33 per share

- FY2025: low $157.79 per share, central $175.37 per share, high $198.76 per share

- FY2026: low $182.30 per share, central $203.23 per share, high $231.08 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:37:21.165Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1037038/000162828026037074/rl-20260328.htm); period 2026-03-28, filed 2026-05-21.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.