NYSE · Consumer Cyclical

Ralph Lauren Corporation

RL · Apparel Manufacturing

$354.29

▼ -7.92 (-2.19%)

Data cached · refreshes every 10 min

Mr. Market is currently offering Ralph Lauren Corporation at $354.29.

The business passes 4 of 7 of Graham's defensive criteria — adequate but not exceptional.

Overall Grade

Defensive

Enterprising

Profitability B

Gross Profit Margin 68.6%

Operating Margin 14.0%

Net Income Margin 10.5%

Fin. Health B

Years to Pay Off Debt 3.6 yrs

Working Capital vs Long-Term Debt $913M

Working Capital $1.7B

Valuation F

Margin of Safety 0.0%

Price-to-Book 5.29x

Cash Flow B

Free Cash Flow $1.0B

CapEx % of Net Income 29.1%

Owner Earnings $1.2B

4/7

Graham Score

Enterprising

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Market Data

Market Cap $21.5B

Enterprise Value $22.5B

P/E (TTM) 24.08

Dividend Yield 0.98%

Exchange NYSE

Key Margins

Gross Profit 68.6%

Operating Margin 14.0%

Net Margin 10.5%

Company Info

Sector Consumer Cyclical

Industry Apparel Manufacturing

Employees 15000

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Ralph Lauren Corporation at $354.29.

The business passes 4 of 7 of Graham's defensive criteria — adequate but not exceptional.

At $354.29, the stock trades at a 168% premium to its Graham Number of $132.26. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: This stock is better suited for Graham's Enterprising investor — one willing to devote time and skill to security selection.

About Ralph Lauren Corporation

Ralph Lauren Corporation designs, markets, and distributes lifestyle products in North America, Europe, Asia, and internationally. It 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, 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 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 directly 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.

Showing Key Metrics

Income Highlights

Metric	2025	2024	2023	2022
Gross Profit %	68.6% ▲	66.8%	64.7%	66.7%
Operating Margin %	14.0% ▲	12.5%	11.7%	13.5%
Net Income %	10.5% ▲	9.7%	8.1%	9.7%
Diluted EPS	11.61 ▲	9.71	7.58	8.07

Balance Sheet Highlights

Metric	2025	2024	2023	2022
Total Assets	$7.0B	$6.6B	$6.8B	$7.7B
Total Debt	$2.7B ↓	$2.7B	$2.9B	$3.4B
Working Capital	$1.7B ▼	$1.9B	$1.8B	$2.0B
Years to Pay Debt	3.59	4.14	5.51	5.65

Cash Flow Highlights

Metric	2025	2024	2023	2022
Free Cash Flow	$1.0B ▲	$905M	$194M	$549M
Owner Earnings	$1.2B	$1.0B	$961M	$997M
CapEx % of Net Income	29.1%	25.5%	41.6%	27.8%

Income Statement

	2025	2024	2023	2022
Tax Effect Of Unusual Items	-12,658	-12,658	-12,912	-8,918
Tax Rate For Calcs	0	0	0	0
Normalized EBITDA	1,272,200	1,123,500	1,005,500	1,081,800
Total Unusual Items	-57,800	-74,900	-52,700	-43,500
Total Unusual Items Excluding Goodwill	-57,800	-74,900	-52,700	-43,500
Net Income From Continuing Operation Net Minority Interest	742,900	646,300	522,700	600,100
Reconciled Depreciation	219,600	229,000	220,500	229,700
Reconciled Cost Of Revenue	2,226,100	2,199,600	2,277,800	2,071,000
EBITDA	1,214,400	1,048,600	952,800	1,038,300
EBIT	994,800	819,600	732,300	808,600
Net Interest Income	29,900	30,800	-8,200	-48,500
Interest Expense	44,100	42,200	40,400	54,000
Interest Income	74,000	73,000	32,200	5,500
Normalized Income	788,042	708,542	562,488	634,682
Net Income From Continuing And Discontinued Operation	742,900	646,300	522,700	600,100
Total Expenses	6,089,100	5,800,100	5,686,700	5,376,600
Rent Expense Supplemental	36,600	19,100	23,800	18,200
Total Operating Income As Reported	932,100	756,400	704,200	798,400
Diluted Average Shares	64,000	66,500	69,000	74,300
Basic Average Shares	62,600	65,200	67,700	73,000
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	742,900	646,300	522,700	600,100
Net Income Common Stockholders	742,900	646,300	522,700	600,100
Net Income	742,900	646,300	522,700	600,100
Net Income Including Noncontrolling Interests	742,900	646,300	522,700	600,100
Net Income Continuous Operations	742,900	646,300	522,700	600,100
Tax Provision	207,800	131,100	169,200	154,500
Other Income Expense	-69,100	-84,700	-56,800	-38,800
Other Non Operating Income Expenses	-11,300	-9,800	-4,100	4,700
Special Income Charges	-57,800	-74,900	-52,700	-43,500
Impairment Of Capital Assets	800	0	9,700	21,300
Restructuring And Mergern Acquisition	57,000	74,900	43,000	22,200
Net Non Operating Interest Income Expense	29,900	30,800	-8,200	-48,500
Interest Expense Non Operating	44,100	42,200	40,400	54,000
Interest Income Non Operating	74,000	73,000	32,200	5,500
Operating Income	989,900	831,300	756,900	841,900
Operating Expense	3,863,000	3,600,500	3,408,900	3,305,600
Selling General And Administration	3,863,000	3,600,500	3,408,900	3,305,600
General And Administrative Expense	3,863,000	3,600,500	3,408,900	3,305,600
Other Gand A	3,863,000	3,600,500	3,408,900	3,305,600
Rent And Landing Fees	36,600	19,100	23,800	18,200
Gross Profit	4,852,900	4,431,800	4,165,800	4,147,500
Cost Of Revenue	2,226,100	2,199,600	2,277,800	2,071,000
Total Revenue	7,079,000	6,631,400	6,443,600	6,218,500
Operating Revenue	7,079,000	6,631,400	6,443,600	6,218,500

Balance Sheet

	2025	2024	2023	2022
Treasury Shares Number	72,900	70,300	67,000	61,900
Ordinary Shares Number	61,481	63,300	65,600	69,900
Share Issued	134,381	133,600	132,600	131,800
Total Debt	2,668,100	2,675,300	2,881,900	3,391,900
Tangible Book Value	1,637,200	1,486,500	1,442,700	1,524,400
Invested Capital	3,731,100	3,590,800	3,569,000	4,172,300
Working Capital	1,656,200	1,892,600	1,830,600	1,961,600
Net Tangible Assets	1,637,200	1,486,500	1,442,700	1,524,400
Capital Lease Obligations	1,525,500	1,534,800	1,743,400	1,755,600
Common Stock Equity	2,588,500	2,450,300	2,430,500	2,536,000
Total Capitalization	3,331,400	3,590,800	3,569,000	3,672,500
Total Equity Gross Minority Interest	2,588,500	2,450,300	2,430,500	2,536,000
Stockholders Equity	2,588,500	2,450,300	2,430,500	2,536,000
Gains Losses Not Affecting Retained Earnings	-299,900	-276,100	-196,000	-180,300
Other Equity Adjustments	-299,900	-276,100	-196,000	-180,300
Treasury Stock	7,734,700	7,250,300	6,797,300	6,308,700
Retained Earnings	7,590,100	7,051,600	6,598,200	6,274,900
Additional Paid In Capital	3,031,700	2,923,800	2,824,300	2,748,800
Capital Stock	1,300	1,300	1,300	1,300
Common Stock	1,300	1,300	1,300	1,300
Total Liabilities Net Minority Interest	4,458,800	4,152,300	4,359,000	5,188,700
Total Non Current Liabilities Net Minority Interest	2,325,100	2,685,100	2,865,500	2,933,000
Other Non Current Liabilities	6,600	5,100	4,300	36,600
Derivative Product Liabilities	2,400	5,200	0	18,100
Employee Benefits	22,500	20,500	12,400	12,000
Tradeand Other Payables Non Current	193,300	160,900	169,700	190,800
Non Current Deferred Liabilities	39,400	48,000	50,400	65,200
Non Current Deferred Taxes Liabilities	5,900	7,000	7,200	12,500
Long Term Debt And Capital Lease Obligation	2,022,400	2,410,600	2,594,900	2,610,300
Long Term Capital Lease Obligation	1,279,500	1,270,100	1,456,400	1,473,800
Long Term Debt	742,900	1,140,500	1,138,500	1,136,500
Long Term Provisions	38,500	34,800	33,800
Current Liabilities	2,133,700	1,467,200	1,493,500	2,255,700
Other Current Liabilities	7,700	300
Current Deferred Liabilities	16,600	17,300	14,000	16,500
Current Deferred Revenue	16,600	17,300	14,000	16,500
Current Debt And Capital Lease Obligation	645,700	264,700	287,000	781,600
Current Capital Lease Obligation	246,000	264,700	287,000	281,800
Current Debt	399,700			499,800
Other Current Borrowings	399,700			499,800
Current Provisions	15,500	32,300	20,800	30,800
Payables And Accrued Expenses	1,448,200	1,152,600	1,171,700	1,426,800
Current Accrued Expenses	736,500	632,300	658,400	815,300
Payables	711,700	520,300	513,300	611,500
Dividends Payable	50,700	47,500	49,200	48,100
Total Tax Payable	225,000	140,600	92,500	114,700
Income Tax Payable	146,500	79,800	59,700	53,800
Accounts Payable	436,000	332,200	371,600	448,700
Total Assets	7,047,300	6,602,600	6,789,500	7,724,700
Total Non Current Assets	3,257,400	3,242,800	3,465,400	3,507,400
Other Non Current Assets	51,400	47,100	39,800	39,700
Non Current Prepaid Assets	54,500	34,200	33,000	30,600
Non Current Deferred Assets	337,600	294,600	261,900	309,000
Non Current Deferred Taxes Assets	335,400	288,300	255,100	303,800
Financial Assets	0	30,600	42,800	23,700
Investments And Advances	3,100	7,500	10,600	12,000
Long Term Equity Investment	3,100	7,500	10,600	12,000
Goodwill And Other Intangible Assets	951,300	963,800	987,800	1,011,600
Other Intangible Assets	62,800	75,700	88,900	102,900
Goodwill	888,500	888,100	898,900	908,700
Net PPE	1,859,500	1,865,000	2,089,500	2,080,800
Accumulated Depreciation	-2,591,800	-2,452,400	-2,334,500	-2,249,100
Gross PPE	4,451,300	4,317,400	4,424,000	4,329,900
Leases	1,308,600	1,249,400	1,216,100	1,170,100
Construction In Progress	91,100	46,200	60,900	55,400
Other Properties	1,013,100	1,014,600	1,134,000	1,111,300
Machinery Furniture Equipment	1,606,300	1,575,100	1,525,800	1,497,400
Buildings And Improvements	416,900	416,800	471,900	480,400
Land And Improvements	15,300	15,300	15,300	15,300
Current Assets	3,789,900	3,359,800	3,324,100	4,217,300
Other Current Assets	49,800	46,900	58,900	50,200
Hedging Assets Current	30,900	6,000	1,700	8,700
Restricted Cash	1,400	2,800	1,500
Prepaid Assets	62,900	57,700	45,300	39,900
Inventory	949,600	902,200	1,071,300	977,300
Receivables	612,300	561,000	579,700	542,800
Other Receivables	70,700	32,400	34,600	47,500
Taxes Receivable	82,100	82,100	97,400	89,900
Accounts Receivable	459,500	446,500	447,700	405,400
Allowance For Doubtful Accounts Receivable	-186,300	-175,300	-175,300	-214,700
Gross Accounts Receivable	645,800	621,800	623,000	620,100
Cash Cash Equivalents And Short Term Investments	2,083,000	1,783,200	1,565,700	2,598,400
Other Short Term Investments	160,500	121,000	36,400	734,600
Cash And Cash Equivalents	1,922,500	1,662,200	1,529,300	1,863,800

Cash Flow

	2025	2024	2023	2022
Free Cash Flow	1,018,900	904,900	193,500	549,000
Repurchase Of Capital Stock	-480,900	-449,700	-488,600	-492,600
Repayment Of Debt	-22,000	-21,300	-521,900	-23,100
Capital Expenditure	-216,200	-164,800	-217,500	-166,900
End Cash Position	1,929,400	1,670,600	1,536,900	1,872,000
Beginning Cash Position	1,670,600	1,536,900	1,872,000	2,588,000
Effect Of Exchange Rate Changes	-8,200	-13,600	-8,800	-48,300
Changes In Cash	267,000	147,300	-326,300	-667,700
Financing Cash Flow	-704,000	-665,600	-1,208,800	-665,700
Cash Flow From Continuing Financing Activities	-704,000	-665,600	-1,208,800	-665,700
Cash Dividends Paid	-201,100	-194,600	-198,300	-150,000
Common Stock Dividend Paid	-201,100	-194,600	-198,300	-150,000
Net Common Stock Issuance	-480,900	-449,700	-488,600	-492,600
Common Stock Payments	-480,900	-449,700	-488,600	-492,600
Net Issuance Payments Of Debt	-22,000	-21,300	-521,900	-23,100
Net Long Term Debt Issuance	-22,000	-21,300	-521,900	-23,100
Long Term Debt Payments	-22,000	-21,300	-521,900	-23,100
Investing Cash Flow	-264,100	-256,800	471,500	-717,900
Cash Flow From Continuing Investing Activities	-264,100	-256,800	471,500	-717,900
Net Other Investing Changes	-400	-3,500	-5,800	-5,000
Net Investment Purchase And Sale	-47,500	-88,500	694,800	-546,000
Purchase Of Investment	-781,800	-392,800	-598,600	-1,510,600
Capital Expenditure Reported	-216,200	-164,800	-217,500	-166,900
Operating Cash Flow	1,235,100	1,069,700	411,000	715,900
Cash Flow From Continuing Operating Activities	1,235,100	1,069,700	411,000	715,900
Change In Working Capital	201,900	115,000	-424,600	-169,600
Change In Other Working Capital	129,900	-50,500	-20,900	-99,000
Change In Payables And Accrued Expense	226,200	15,600	-225,000	194,600
Change In Prepaid Assets	-74,000	16,100	-19,900	-28,300
Change In Inventory	-52,600	149,100	-106,200	-269,300
Change In Receivables	-27,600	-15,300	-52,600	32,400
Changes In Account Receivables	-27,600	-15,300	-52,600	32,400
Other Non Cash Items	2,800	13,700	1,000	1,000
Stock Based Compensation	107,900	99,500	75,500	81,700
Asset Impairment Charge	10,000	7,300	12,000	19,100
Deferred Tax	-50,000	-41,100	3,900	-46,100
Deferred Income Tax	-50,000	-41,100	3,900	-46,100
Depreciation Amortization Depletion	219,600	229,000	220,500	229,700
Depreciation And Amortization	219,600	229,000	220,500	229,700
Amortization Cash Flow	12,900	13,100	14,000	17,900
Amortization Of Intangibles	12,900	13,100	14,000	17,900
Depreciation	206,700	215,900	206,500	211,800
Net Income From Continuing Operations	742,900	646,300	522,700	600,100

These metrics estimate what Ralph Lauren Corporation is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

$132.26

Margin of Safety

Market Cap ÷ Company Value

1.29

P/B Ratio

5.29

Warren's Owner Earnings

$1.2B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

4/7 — Enterprising Investor

✅ Adequate Size

$7.1B

vs > $1.5B revenue

❌ Strong Financial Condition

1.78x

vs Current Ratio > 2.0x

✅ Earnings Stability

No loss years (4 yrs data)

vs No negative EPS years

✅ Dividend Record

0.98%

vs Uninterrupted dividends

✅ Earnings Growth

+43.9% EPS growth

vs > 33% EPS growth

❌ Moderate P/E Ratio

24.1x

vs P/E ≤ 15.0x

❌ Moderate Price-to-Book

5.29x P/B (P/E×P/B: 127.4)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

$-17.30

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

$284.54

Per share, no-growth floor. Compare to current price.

Cash Flow Analysis

Metric	2025	2024	2023	2022
Capital Expenditure % of Net Income	29.1%	25.5%	41.6%	27.8%
Repurchase of Capital Stock	-$481M	-$450M	-$489M	-$493M
Free Cash Flow	$1.0B ▲	$905M ▲	$194M ▼	$549M •
Warren's Owner Earnings	$1.2B	$1.0B	$961M	$997M

Peers & Industry

No auto-detected peers for Apparel Manufacturing. You can manually compare RL against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

3.97%

Moderate — some alignment with shareholders

Return on Equity (ROE)

28.7%

Excellent — management generates strong returns on equity

Return on Assets (ROA)

10.5%

Strong — management uses assets efficiently

Share Buybacks (Latest Year)

$481M

Management is returning capital to shareholders via buybacks

Debt Trend YoY

-0.3% YoY

Debt is declining — management is deleveraging

Leadership Team

Ralph Lauren

Executive Chairman & Chief Creative Officer

Age 85

Pay: $13,182,810

1.775% of net income

Patrice Jean Louis Louvet

President, CEO & Director

Age 60

Pay: $9,537,578

1.284% of net income

David Lauren

Vice Chairman, Chief Branding & Innovation Officer and Strategic Advisor to the CEO

Age 53

Pay: $2,878,350

0.387% of net income

Justin Picicci

Chief Financial Officer

Age 46

Pay: $2,081,152

0.280% of net income

Robert Ranftl

Chief Operating Officer

Age 53

Top Institutional Holders

Institution	% Owned	Shares
Vanguard Group Inc	12.25%	4,735,743
Blackrock Inc.	7.51%	2,903,285
FMR, LLC	3.76%	1,453,212
State Street Corporation	3.74%	1,444,732
Invesco Ltd.	3.43%	1,324,018
Geode Capital Management, LLC	2.72%	1,050,543
Qube Research & Technologies Ltd	2.33%	899,444
Goldman Sachs Group Inc	2.32%	895,017

Risk Analysis

Beta (Market Risk)

1.39

Moderate volatility — moves slightly more than market

Short Interest

9.0% of float

Moderate short interest

Debt-to-Equity

0.99x

Conservative balance sheet — low financial risk

Current Ratio

2.10x

Strong liquidity — Graham approved

52-Week Price Range

Low: $230.63 Current: $354.29 High: $393.41

Currently at 76% of 52-week range

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