New Coverage: $70 Trefis Price Estimate for Polo Ralph Lauren

Polo Ralph Lauren (NYSE:RL) is a global leader in the design, marketing and distribution of premium lifestyle apparel and accessories.  The company competes with other premium apparel and accessories players like Coach (NYSE:COH), Liz Claiborne (NYSE:LIZ) and AnnTaylor (NYSE:ANN).  We recently launched coverage of the company with a Trefis price estimate of $70 for Polo Ralph Lauren’s stock.

Polo Ralph Lauren distributes Polo branded products through

1. Company owned retail stores
2. Specialty stores and department stores (e.g. Macy’s)
3. Online through its e-commerce website

We’ve broken down our analysis of Polo Ralph Lauren into five main business segments:

1. Ralph Lauren, Club Monaco & Rugby Stores
2. Ralph Lauren Factory Stores
3. Macy’s & Dillard’s Department Stores
4. Specialty Stores & Other Department Stores (excludes Macy’s and Dillard’s)
5. Licensing Royalties

What percent of Polo Ralph Lauren’s stock do you think is attributable to the sale of Polo products through Specialty Stores & Other Department Stores (excludes Macy’s and Dillard’s stores)?

A.  9%

B.  22%

C.  34%

D.  51%

E.  73%

Make a selection above to see the answer.

Four Clues Based on Trefis Estimates

1. Polo Ralph Lauren will have about $2.1 billion in revenues in 2010 from sales to Specialty Stores & Other Department Stores

2. Polo Ralph Lauren will have about $1.4 billion in revenues in 2010 from sales at Ralph Lauren Factory Stores

3. Polo Ralph Lauren will have about $900 million in revenues in 2010 from sales at Ralph Lauren, Club Monaco & Rugby stores together

4. Polo Ralph Lauren’s EBITDA margin is highest for Specialty Stores & Other Department Stores

You can see the complete $70 Trefis Price estimate for Polo Ralph Lauren’s stock here.