Ralph Lauren (RL)
Market Price (11/3/2025): $320.25 | Market Cap: $19.5 BilSector: Consumer Discretionary | Industry: Apparel, Accessories & Luxury Goods
Ralph Lauren (RL)
Market Price (11/3/2025): $320.25Market Cap: $19.5 BilSector: Consumer DiscretionaryIndustry: Apparel, Accessories & Luxury Goods
Investment Highlights
Why It Matters
Which of these 2 stories sounds closer for this stock?
1. Generates cash flow
The stock generated 4% or more of the share price (called cash flow yield), and shows moderate 10-15% or more growth.
2. Riding a trend
Think Tesla during the pandemic of 2020 when EVs were riding a cultural high, or Nvidia in the current AI boom, or even Figma. These companies don’t have enough yield, or, enough growth, or both - however - they are riding a trend. They have momentum. These can be more volatile - they don’t have the floor of strong cash flow
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 5.1% | ||
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 16%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 10% | ||
| Low stock price volatilityVol 12M is 40% |
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 5.1% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 16%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 10% |
| Low stock price volatilityVol 12M is 40% |
Market Valuation & Key Metrics
RL Stock
Why The Stock Moved
Qualitative Assessment
AI Generated Analysis | Feedback
Here are the key points for why Ralph Lauren's (RL) stock moved by 7.3% from approximately July 31, 2025, to November 3, 2025:
1. Strong First Quarter Fiscal 2026 Earnings Report: Ralph Lauren reported robust financial results for its first quarter of fiscal 2026 on August 7, 2025, exceeding analyst expectations for both revenue and earnings per share and subsequently raising its full-year outlook. The company's revenue increased by 14% to $1.7 billion, and adjusted earnings per share (EPS) rose to $3.77, surpassing the consensus estimate of $3.50.
2. Unveiling of Strategic Growth Plan "Next Great Chapter: Drive": On September 16, 2025, Ralph Lauren hosted an Investor Day where it presented an updated strategic growth plan, "Next Great Chapter: Drive," along with a positive long-term financial outlook, including projections for mid-single-digit compounded annual revenue growth through fiscal 2028.
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Stock Movement Drivers
Return vs. Risk
Price Returns Compared
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| RL Return | -11% | 17% | -8% | 40% | 63% | 40% | 204% |
| Peers Return | -6% | 12% | -40% | 10% | 10% | -1% | -25% |
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 16% | 112% |
Monthly Win Rates [3] | |||||||
| RL Win Rate | 33% | 50% | 33% | 50% | 67% | 70% | |
| Peers Win Rate | 48% | 55% | 42% | 50% | 52% | 42% | |
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 70% | |
Max Drawdowns [4] | |||||||
| RL Max Drawdown | -47% | -3% | -28% | 0% | -5% | -21% | |
| Peers Max Drawdown | -65% | -8% | -58% | -31% | -33% | -41% | |
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | |
[1] Cumulative total returns since the beginning of 2020
[2] Peers: TPR, VFC, PVH, FOSL, VRA. See RL Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2025 data is for the year up to 10/31/2025 (YTD)
How Low Can It Go
| Event | RL | S&P 500 |
|---|---|---|
| 2022 Inflation Shock | ||
| % Loss | -39.9% | -25.4% |
| % Gain to Breakeven | 66.3% | 34.1% |
| Time to Breakeven | 444 days | 464 days |
| 2020 Covid Pandemic | ||
| % Loss | -50.7% | -33.9% |
| % Gain to Breakeven | 102.8% | 51.3% |
| Time to Breakeven | 339 days | 148 days |
| 2018 Correction | ||
| % Loss | -41.5% | -19.8% |
| % Gain to Breakeven | 70.9% | 24.7% |
| Time to Breakeven | 1575 days | 120 days |
| 2008 Global Financial Crisis | ||
| % Loss | -68.8% | -56.8% |
| % Gain to Breakeven | 220.3% | 131.3% |
| Time to Breakeven | 611 days | 1480 days |
Compare to TPR, VFC, PVH, FOSL, VRA
In The Past
Ralph Lauren's stock fell -39.9% during the 2022 Inflation Shock from a high on 5/7/2021. A -39.9% loss requires a 66.3% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth over time.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
Latest Trefis Analyses
Trade Ideas
Select past ideas related to RL. For more, see Trefis Trade Ideas.
| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 10312025 | LRN | Stride | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 0.0% | 0.0% | 0.0% |
| 10312025 | DECK | Deckers Outdoor | Dip Buy | DB | CFO/Rev | Low D/EDip Buy with High Cash Flow MarginsBuying dips for companies with significant cash flows from operations and reasonable debt / market cap | 0.0% | 0.0% | 0.0% |
| 10312025 | ATGE | Adtalem Global Education | Quality | Q | Momentum | UpsideQuality Stocks with Momentum and UpsideBuying quality stocks with strong momentum but still having room to run | 0.0% | 0.0% | 0.0% |
| 10242025 | GNTX | Gentex | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | -0.8% | -0.8% | -0.8% |
| 10172025 | LNW | Light & Wonder | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | -4.5% | -4.5% | -6.2% |
| 03312020 | RL | Ralph Lauren | Dip Buy | DB | FCF Yield | Low D/EDip Buy with High Free Cash Flow YieldBuying dips for companies with significant free cash flow yield (FCF / Market Cap) and reasonable debt / market cap | 0.8% | 84.3% | -8.7% |
| 12312016 | RL | Ralph Lauren | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | -17.2% | 17.5% | -26.4% |
| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 10312025 | LRN | Stride | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 0.0% | 0.0% | 0.0% |
| 10312025 | DECK | Deckers Outdoor | Dip Buy | DB | CFO/Rev | Low D/EDip Buy with High Cash Flow MarginsBuying dips for companies with significant cash flows from operations and reasonable debt / market cap | 0.0% | 0.0% | 0.0% |
| 10312025 | ATGE | Adtalem Global Education | Quality | Q | Momentum | UpsideQuality Stocks with Momentum and UpsideBuying quality stocks with strong momentum but still having room to run | 0.0% | 0.0% | 0.0% |
| 10242025 | GNTX | Gentex | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | -0.8% | -0.8% | -0.8% |
| 10172025 | LNW | Light & Wonder | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | -4.5% | -4.5% | -6.2% |
| 03312020 | RL | Ralph Lauren | Dip Buy | DB | FCF Yield | Low D/EDip Buy with High Free Cash Flow YieldBuying dips for companies with significant free cash flow yield (FCF / Market Cap) and reasonable debt / market cap | 0.8% | 84.3% | -8.7% |
| 12312016 | RL | Ralph Lauren | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | -17.2% | 17.5% | -26.4% |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons for Ralph Lauren
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 46.19 |
| Mkt Cap | 4.6 |
| Rev LTM | 7,148 |
| Op Inc LTM | 558 |
| FCF LTM | 378 |
| FCF 3Y Avg | 378 |
| CFO LTM | 516 |
| CFO 3Y Avg | 570 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | -0.6% |
| Rev Chg 3Y Avg | -3.8% |
| Rev Chg Q | 3.1% |
| QoQ Delta Rev Chg LTM | 0.8% |
| Op Mgn LTM | 6.1% |
| Op Mgn 3Y Avg | 6.7% |
| QoQ Delta Op Mgn LTM | 0.3% |
| CFO/Rev LTM | 5.7% |
| CFO/Rev 3Y Avg | 6.2% |
| FCF/Rev LTM | 4.2% |
| FCF/Rev 3Y Avg | 4.1% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 4.6 |
| P/S | 0.5 |
| P/EBIT | 15.6 |
| P/E | 16.3 |
| P/CFO | 10.2 |
| Total Yield | 3.2% |
| Dividend Yield | 0.6% |
| FCF Yield 3Y Avg | 5.0% |
| D/E | 1.1 |
| Net D/E | 1.0 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | -5.3% |
| 3M Rtn | 15.5% |
| 6M Rtn | 28.5% |
| 12M Rtn | 21.1% |
| 3Y Rtn | 14.2% |
| 1M Excs Rtn | -7.0% |
| 3M Excs Rtn | 0.7% |
| 6M Excs Rtn | 8.2% |
| 12M Excs Rtn | 2.0% |
| 3Y Excs Rtn | -66.2% |
Comparison Analyses
Returns Analyses
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 6302025 | 8072025 | 10-Q 6/28/2025 |
| 3312025 | 5222025 | 10-K 3/29/2025 |
| 12312024 | 2062025 | 10-Q 12/28/2024 |
| 9302024 | 11072024 | 10-Q 9/28/2024 |
| 6302024 | 8072024 | 10-Q 6/29/2024 |
| 3312024 | 5232024 | 10-K 3/30/2024 |
| 12312023 | 2082024 | 10-Q 12/30/2023 |
| 9302023 | 11082023 | 10-Q 9/30/2023 |
| 6302023 | 8102023 | 10-Q 7/1/2023 |
| 3312023 | 5252023 | 10-K 4/1/2023 |
| 12312022 | 2092023 | 10-Q 12/31/2022 |
| 9302022 | 11102022 | 10-Q 10/1/2022 |
| 6302022 | 8092022 | 10-Q 7/2/2022 |
| 3312022 | 5242022 | 10-K 4/2/2022 |
| 12312021 | 2032022 | 10-Q 12/25/2021 |
| 9302021 | 11032021 | 10-Q 9/25/2021 |
External Quote Links
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| YCharts | Perplexity Finance |
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