Ralph Lauren Corporation (NYSE:RL) Might Not Be As Mispriced As It Looks
Aug 06
U.S. Luxury Industry Analysis
UpdatedAug 07, 2024
DataAggregated Company Financials
Companies70
- 7D-4.2%
- 3M-14.8%
- 1Y-19.6%
- YTD-22.4%
Over the last 7 days, the Luxury industry has dropped 4.2%, driven by pullbacks in NIKE and Lululemon Athletica of 2.4% and 7.5%, respectively. However, the industry is down 20% over the past year. As for the next few years, earnings are expected to grow by 12% per annum.
Industry Valuation and Performance
Has the U.S. Luxury Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Wed, 07 Aug 2024 | US$269.9b | US$168.8b | US$11.4b | 16x | 23.7x | 1.6x |
| Fri, 05 Jul 2024 | US$293.2b | US$168.0b | US$11.4b | 17.3x | 25.8x | 1.7x |
| Sun, 02 Jun 2024 | US$340.8b | US$168.1b | US$10.8b | 18.4x | 31.7x | 2x |
| Tue, 30 Apr 2024 | US$318.2b | US$164.3b | US$11.6b | 19x | 27.5x | 1.9x |
| Thu, 28 Mar 2024 | US$333.6b | US$164.7b | US$11.5b | 17.9x | 28.9x | 2x |
| Sat, 24 Feb 2024 | US$360.5b | US$164.5b | US$10.7b | 19.8x | 33.6x | 2.2x |
| Mon, 22 Jan 2024 | US$337.8b | US$159.4b | US$10.9b | 17.7x | 30.9x | 2.1x |
| Wed, 20 Dec 2023 | US$378.3b | US$159.3b | US$10.8b | 17.8x | 35.1x | 2.4x |
| Fri, 17 Nov 2023 | US$325.6b | US$158.8b | US$10.4b | 16.2x | 31.3x | 2x |
| Sun, 15 Oct 2023 | US$299.0b | US$158.5b | US$10.5b | 14.6x | 28.4x | 1.9x |
| Tue, 12 Sep 2023 | US$298.5b | US$156.7b | US$10.5b | 13.8x | 28.5x | 1.9x |
| Thu, 10 Aug 2023 | US$325.5b | US$156.5b | US$10.8b | 16x | 30x | 2.1x |
| Sat, 08 Jul 2023 | US$311.2b | US$156.6b | US$10.7b | 13x | 29x | 2x |
| Mon, 05 Jun 2023 | US$311.6b | US$155.6b | US$11.2b | 11.2x | 27.8x | 2x |
| Wed, 03 May 2023 | US$351.9b | US$161.1b | US$10.7b | 11.8x | 32.8x | 2.2x |
| Fri, 31 Mar 2023 | US$343.2b | US$160.5b | US$10.7b | 12.5x | 32x | 2.1x |
| Sun, 26 Feb 2023 | US$331.0b | US$158.1b | US$11.7b | 11.9x | 28.4x | 2.1x |
| Tue, 24 Jan 2023 | US$357.9b | US$158.2b | US$13.0b | 10.9x | 27.6x | 2.3x |
| Thu, 22 Dec 2022 | US$322.3b | US$157.7b | US$13.0b | 9.8x | 24.7x | 2x |
| Sat, 19 Nov 2022 | US$312.1b | US$155.5b | US$14.4b | 10.5x | 21.7x | 2x |
| Mon, 17 Oct 2022 | US$264.5b | US$154.3b | US$15.5b | 8.8x | 17.1x | 1.7x |
| Wed, 14 Sep 2022 | US$329.6b | US$153.9b | US$15.9b | 10.8x | 20.7x | 2.1x |
| Fri, 12 Aug 2022 | US$333.3b | US$153.8b | US$15.8b | 10.4x | 21.1x | 2.2x |
| Sun, 10 Jul 2022 | US$310.0b | US$152.4b | US$16.1b | 10.2x | 19.2x | 2x |
| Tue, 07 Jun 2022 | US$342.5b | US$152.2b | US$16.2b | 11.8x | 21.2x | 2.3x |
| Thu, 05 May 2022 | US$355.3b | US$147.5b | US$15.1b | 11.6x | 23.5x | 2.4x |
| Sat, 02 Apr 2022 | US$381.7b | US$146.6b | US$15.1b | 12.2x | 25.2x | 2.6x |
| Mon, 28 Feb 2022 | US$397.7b | US$144.7b | US$14.8b | 14.9x | 26.9x | 2.7x |
| Wed, 26 Jan 2022 | US$412.7b | US$143.9b | US$14.1b | 16.2x | 29.2x | 2.9x |
| Fri, 24 Dec 2021 | US$472.2b | US$142.6b | US$14.0b | 16.2x | 33.8x | 3.3x |
| Sun, 21 Nov 2021 | US$517.6b | US$141.5b | US$13.6b | 20.6x | 38.2x | 3.7x |
| Tue, 19 Oct 2021 | US$460.5b | US$138.2b | US$12.7b | 19.3x | 36.2x | 3.3x |
| Thu, 16 Sep 2021 | US$453.0b | US$138.4b | US$12.1b | 16.4x | 37.6x | 3.3x |
| Sat, 14 Aug 2021 | US$486.2b | US$136.8b | US$11.8b | 15.7x | 41.1x | 3.6x |
Price to Earnings Ratio
41.1x
Current Industry PE
- Investors are pessimistic on the American Luxury industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 23.7x which is lower than its 3-year average PE of 28.2x.
- The 3-year average PS ratio of 2.3x is higher than the industry's current PS ratio of 1.6x.
Past Earnings Growth
- The earnings for companies in the Luxury industry have remained mostly flat over the last three years.
- Meanwhile revenues for these companies have grown 7.3% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased and as a result, profits have held steady.
Industry Trends
Which industries have driven the changes within the U.S. Consumer Discretionary industry?
| US Market | -4.18% | |
| Consumer Discretionary | -6.76% | |
| Luxury | -4.21% | |
| Footwear | -3.28% | |
| Apparel, Accessories and Luxury Goods | -5.79% | |
| Textiles | -5.95% | |
Industry PE
- Investors are most optimistic about the Apparel, Accessories and Luxury Goods industry which is trading above its 3-year average PE ratio of 25.5x.
- Analysts expect its future annual earnings growth (17.9%) to be largely in line with prior year's earnings growth.
Forecasted Growth
- Analysts are most optimistic on the Textiles industry, expecting annual earnings growth of 99% over the next 5 years.
- This is better than its past earnings decline of 14% per year.
- In contrast, the Footwear industry is expected to see its earnings grow by 8.8% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| CRI Carter's | US$61.41 | 0.4% +US$9.8m | -17.5% | PE9.5x | |
| MGOL MGO Global | US$3.30 | 19.6% +US$1.1m | -83.0% | PS1.1x | |
| FORD Forward Industries | US$4.18 | 6.6% +US$261.6k | -51.9% | PS0.1x |
