How Will Ralph Lauren’s Retail Division Perform In The Next Five Years?

March 16th, 2016 by Trefis Team
+11.05%
Upside
157
Market
175
Trefis
RL: Ralph Lauren logo
RL
Ralph Lauren

The retail segment currently accounts for 40% of the company’s valuation, indicating its importance to the company. Over the period 2015-2020, while the revenue is expected to rise by ~24%, the EBITDA will grow at a slower pace of ~9%, in part due to the rise in direct expenses by ~28%. This will result in a fall in the retail segment EBITDA Margin by 240 basis points. The growth in revenue is primarily driven by the e-commerce sales, which are expected to increase at a CAGR of over 10%.

RL-Retail

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Ralph Lauren.
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