# Ralph Lauren (RL) Sector: Apparel and luxury lifestyle brands | Field | Value | |---|---| | Price | $390.80 | | Market cap | $23B | | Intrinsic value source | Analysts | | Data as of | 2026-11-13 | | Next earnings | 2027-02-04 (estimate) | Analysts: Bullish Picks: Research only Discount category: Far above intrinsic value ## In short Investors pay a premium for the strong full-price growth and wider margins of Ralph Lauren, and only steady growth in Asia and North America through 2027 despite tariff costs and a careful consumer can earn this price. ## Themes and gap - Themes: Weak consumer (weak-consumer), Tariffs and trade (trade-tariffs), China and geopolitics (china-geopolitics) - Gap type: Can close (closable) - Why: The Q3 fiscal 2027 report, expected in early February 2027, covers the holiday quarter and shows whether full-price growth and the margin gain continue. ## About Ralph Lauren Corporation (Ralph Lauren) is based in New York. It designs, markets and sells apparel, handbags, footwear and accessories, fragrances, home goods and hospitality under brands such as Ralph Lauren, Polo Ralph Lauren, Lauren Ralph Lauren, Purple Label and Double RL. It sells through its own stores and websites, wholesale customers and licensees. It has three reportable segments: North America, Europe and Asia. Revenue was $2,193.3 million in Q2 fiscal 2027, the quarter ended September 26, 2026, and $8,114.5 million in fiscal 2026. The fiscal year ends on the Saturday nearest March 31, and fiscal 2027 has 53 weeks. Class A common stock trades on the NYSE in US dollars. Ralph Lauren files 10-K and 10-Q reports. ## Thesis The price of Ralph Lauren reflects a long run of full-price growth and wider margins, and it depends on whether the run can continue as tariffs, the consumer and costs change. In Q2 fiscal 2027 revenue rose 9%, direct-to-consumer comparable store sales rose 10%, and the adjusted operating margin rose 160 basis points to 15.7%. Part of the gross margin gain came from refunds of $82.3 million of IEEPA tariffs, which will not repeat. For the price to hold, four things must be true. Average unit retail must keep growing with steady full-price demand. Asia, led by China, must keep growing fast. The operating margin must gain the 80 to 100 basis points that management guides for fiscal 2027 while marketing spend rises. Europe and wholesale must not weaken. The Q3 fiscal 2027 report, expected in early February 2027, covers the holiday quarter and is the next test. ## Checkpoints - Feb 4, 2027 (estimate): Q3 fiscal 2027 results (holiday quarter). Status: Pending. Watch: Revenue grows 3% to 4% in constant currency, as guided, and the operating margin gains 50 to 70 basis points, and this passes; slower growth or a smaller margin gain fails. - May 20, 2027 (estimate): Fiscal 2027 results and fiscal 2028 outlook. Status: Pending. Watch: The full-year operating margin gains 80 to 100 basis points in constant currency, as guided, and the fiscal 2028 outlook shows more growth, and this passes; a smaller gain or a flat outlook fails. ## Balance sheet - Cash: $1.8B - Debt: $1.2B - Net cash: $582M At September 26, 2026, Ralph Lauren had cash and cash equivalents of $1,426.1 million and short-term investments of $395.7 million, which is $1,821.8 million in all. Long-term debt was $1,240.0 million: $750 million of 2.950% senior notes and $500 million of 5.000% senior notes, net of issue costs. Net cash was $581.8 million. Inventory was $1.2 billion, down 9% from a year before. The company repurchased $500 million of Class A stock in the first six months of fiscal 2027 and paid dividends of $114.4 million. It expects capital spending of 4% to 5% of revenue in fiscal 2027. Lease liabilities are not in these figures. As of 2026-09-26. Sources: - https://www.sec.gov/Archives/edgar/data/1037038/000162828026070697/rl-20260926.htm - https://www.sec.gov/Archives/edgar/data/1037038/000162828026070619/rl-20260926ex991xpressrele.htm ## Dividends - Dividend yield: 1.0% (last 12 months, at the current price) - Paid per share, last 12 months: $3.826 (4 payments) - Current annual rate: $4.00 ($1.00 x 4 a year) - Payout ratio: 24% of the earnings of the last fiscal year (the year ended 2026-03-28) - Latest ex-dividend date: 2026-09-25, $1.00 per share - Growth from 2020 to 2025: 39.0% a year - Growth from 2015 to 2025: 5.9% a year Dividends per share by year: 2016: $2.00, 2017: $2.00, 2018: $2.375, 2019: $2.689, 2020: $0.688, 2021: $2.064, 2022: $2.938, 2023: $3.00, 2024: $3.225, 2025: $3.564. Source: company filings and market data, read on 2026-11-13. ## Recent events - 2026-11-05: Ralph Lauren reported Q2 fiscal 2027 results. Revenue rose 9% to $2.2 billion and adjusted earnings per share were $4.64. It raised its fiscal 2027 outlook to constant currency revenue growth centered around 6% to 7% and an operating margin gain of about 80 to 100 basis points. It repurchased about $250 million of Class A stock in the quarter, which completes its repurchase plans for the year at $500 million. - 2026-09-03: Ralph Lauren said that Halide Alagoz, Chief Product & Merchandising Officer, will become Chief Operating & Product Officer on November 29, 2026. Robert Ranftl, the chief operating officer, told the company on August 31 that he will retire. - 2026-05-21: Ralph Lauren reported fiscal 2026 results. Revenue rose 15% to $8,114.5 million, above $8 billion for the first time. The board raised the dividend by 10%, and the company gave a first outlook for fiscal 2027 of mid-single-digit revenue growth. ## Latest news and filings - Last earnings: 2026-11-05 (8-K: https://www.sec.gov/Archives/edgar/data/1037038/000162828026070619/) - Next earnings: 2027-02-04 (expected; the company has not confirmed it) | Filed | Form | Headline | Period end | XBRL document | Link | | --- | --- | --- | --- | --- | --- | | 2026-11-05 | 10-Q | Quarterly report for the period ended Sep 26, 2026 | 2026-09-26 | rl-20260926 | https://www.sec.gov/Archives/edgar/data/1037038/000162828026070697/rl-20260926.htm | | 2026-11-05 | 8-K | Earnings release | | rl-20261105 | https://www.sec.gov/Archives/edgar/data/1037038/000162828026070619/ | | 2026-09-03 | 8-K | Change of directors or officers and Investor disclosure | | | https://www.sec.gov/Archives/edgar/data/1037038/000095014226002493/eh260826627_8k.htm | | 2026-08-06 | 10-Q | Quarterly report for the period ended Jun 27, 2026 | 2026-06-27 | rl-20260627 | https://www.sec.gov/Archives/edgar/data/1037038/000162828026053992/rl-20260627.htm | | 2026-08-06 | 8-K | Earnings release | | rl-20260806 | https://www.sec.gov/Archives/edgar/data/1037038/000162828026053896/ | | 2026-08-03 | 8-K | Shareholder vote results | | | https://www.sec.gov/Archives/edgar/data/1037038/000095014226002236/eh260814840_8k.htm | | 2026-05-21 | 10-K | Annual report for the period ended Mar 28, 2026 | 2026-03-28 | rl-20260328 | https://www.sec.gov/Archives/edgar/data/1037038/000162828026037074/rl-20260328.htm | | 2026-05-21 | 8-K | Earnings release | | rl-20260521 | https://www.sec.gov/Archives/edgar/data/1037038/000162828026037053/ | | 2026-02-05 | 10-Q | Quarterly report for the period ended Dec 27, 2025 | 2025-12-27 | rl-20251227 | https://www.sec.gov/Archives/edgar/data/1037038/000162828026005784/rl-20251227.htm | | 2026-02-05 | 8-K | Earnings release | | rl-20260205 | https://www.sec.gov/Archives/edgar/data/1037038/000162828026005615/ | Every filing on SEC EDGAR (CIK 1037038): https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001037038&type=&dateb=&owner=include&count=40 ## Risks - Medium: Tariffs can raise costs. The Supreme Court ended IEEPA tariffs in February 2026 and Ralph Lauren booked $82.3 million of refunds in Q2, which will not repeat. Other US tariffs remain. - Medium: The consumer can weaken. Europe comparable store sales fell 1% in Q2, with brick and mortar down 4%. The outlook assumes that the global consumer holds up. - Medium: Growth leans on Asia. Asia revenue rose 28% to $571 million in Q2 and China rose more than 35%. A drop in China demand or a political shock would cut growth. - Medium: Wholesale timing flatters Q2. North America wholesale rose 8% and included about 4 points from shipments that moved forward from the second half, so the second half is weaker. - Low: The chief operating officer retires. Halide Alagoz takes the combined role on November 29, 2026. ## Links - Page: https://picks.utilarium.app/company/RL/ - History of changes: https://picks.utilarium.app/company/RL/history/ - JSON with full history: https://picks.utilarium.app/data/company/RL.json > Picks is a personal record of stock picks. It gives general opinions about stocks, including a "Top pick" label. They are not tailored to your needs, goals or risk tolerance. Kevin is not a registered adviser and relies on the general-advice exemption in Canadian securities law (NI 31-103 s.8.25). Do your own research, or ask a registered adviser. Kevin may hold any stock on this site. Prices, intrinsic values and ratings can be delayed or wrong; check the original source. Full disclaimer: /disclaimer/.