NYSE:RL

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Executive Summary

Ralph Lauren Corporation designs, markets, and distributes lifestyle products in North America, Europe, Asia, and internationally. More Details


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has Ralph Lauren's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.3%

RL

5.0%

US Luxury

-0.8%

US Market


1 Year Return

-24.6%

RL

15.0%

US Luxury

13.8%

US Market

Return vs Industry: RL underperformed the US Luxury industry which returned 15% over the past year.

Return vs Market: RL underperformed the US Market which returned 13.8% over the past year.


Shareholder returns

RLIndustryMarket
7 Day-6.3%5.0%-0.8%
30 Day-0.2%5.6%-5.0%
90 Day-2.1%25.4%10.1%
1 Year-23.4%-24.6%16.3%15.0%16.4%13.8%
3 Year-14.6%-19.5%77.6%69.4%36.9%27.8%
5 Year-32.8%-39.4%52.0%42.1%85.0%64.2%

Price Volatility Vs. Market

How volatile is Ralph Lauren's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ralph Lauren undervalued compared to its fair value and its price relative to the market?

0.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RL ($71.07) is trading below our estimate of fair value ($71.15)

Significantly Below Fair Value: RL is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: RL is poor value based on its PE Ratio (38x) compared to the US Luxury industry average (33.1x).

PE vs Market: RL is poor value based on its PE Ratio (38x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: RL is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: RL is overvalued based on its PB Ratio (2x) compared to the US Luxury industry average (1.3x).


Next Steps

Future Growth

How is Ralph Lauren forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

26.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RL's forecast earnings growth (26.3% per year) is above the savings rate (2.2%).

Earnings vs Market: RL's earnings (26.3% per year) are forecast to grow faster than the US market (22.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RL's revenue (9.1% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: RL's revenue (9.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RL's Return on Equity is forecast to be high in 3 years time (20.2%)


Next Steps

Past Performance

How has Ralph Lauren performed over the past 5 years?

0.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RL has a large one-off loss of $254.7M impacting its June 27 2020 financial results.

Growing Profit Margin: RL's current net profit margins (2.7%) are lower than last year (6.9%).


Past Earnings Growth Analysis

Earnings Trend: RL's earnings have grown by 0.4% per year over the past 5 years.

Accelerating Growth: RL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RL had negative earnings growth (-68.2%) over the past year, making it difficult to compare to the Luxury industry average (-54.2%).


Return on Equity

High ROE: RL's Return on Equity (5.5%) is considered low.


Next Steps

Financial Health

How is Ralph Lauren's financial position?


Financial Position Analysis

Short Term Liabilities: RL's short term assets ($3.9B) exceed its short term liabilities ($1.5B).

Long Term Liabilities: RL's short term assets ($3.9B) exceed its long term liabilities ($3.7B).


Debt to Equity History and Analysis

Debt Level: RL's debt to equity ratio (75.5%) is considered high.

Reducing Debt: RL's debt to equity ratio has increased from 12.4% to 75.5% over the past 5 years.

Debt Coverage: RL's debt is well covered by operating cash flow (25.2%).

Interest Coverage: RL earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Ralph Lauren current dividend yield, its reliability and sustainability?

3.63%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate RL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate RL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: RL is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RL's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure


CEO

Patrice Jean Louvet (55 yo)

3.17yrs

Tenure

US$12,170,470

Compensation

Mr. Patrice Jean Louis Louvet has been the Chief Executive Officer and President of Ralph Lauren Corporation since July 17, 2017. Mr. Louvet joined Ralph Lauren Corporation on July 3, 2017 and drives its s ...


CEO Compensation Analysis

Compensation vs Market: Patrice Jean's total compensation ($USD12.17M) is above average for companies of similar size in the US market ($USD7.43M).

Compensation vs Earnings: Patrice Jean's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ralph Lauren
Executive Chairman & Chief Creative Officer23.67yrsUS$13.04m27.29%
$ 1.4b
Patrice Jean Louvet
President3.17yrsUS$12.17m0.45%
$ 23.2m
David Lauren
Vice Chairman3.92yrsUS$2.03m0.042%
$ 2.2m
Jane Nielsen
CFO & COO4yrsUS$9.98m0.058%
$ 3.0m
Andrew Smith
Executive VP & Chief Commercial Officer1.67yrsUS$8.11m0.063%
$ 3.3m
Janet Sherlock
Chief Information Officer2.08yrsno datano data
Corinna Van Ghinst
Vice President of Investor Relationsno datano datano data
Avery Fischer
Executive VPno datano datano data
Jonathan Bottomley
Chief Marketing Officer3.42yrsno datano data
Roseann Lynch
Executive VP and Chief People & Global Human Rights Officerno datano datano data
Bill Campbell
Corporate Senior Vice President of Global Supply Chain & Inventory Management3.92yrsno datano data
Kevin Carrigan
Senior VP & Creative Director3.67yrsno datano data

3.7yrs

Average Tenure

54yo

Average Age

Experienced Management: RL's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ralph Lauren
Executive Chairman & Chief Creative Officer23.67yrsUS$13.04m27.29%
$ 1.4b
Patrice Jean Louvet
President3.17yrsUS$12.17m0.45%
$ 23.2m
David Lauren
Vice Chairman3.92yrsUS$2.03m0.042%
$ 2.2m
John Alchin
Independent Director13.58yrsUS$279.73k0.026%
$ 1.4m
Frank Bennack
Lead Independent Director3.67yrsUS$314.73k0.031%
$ 1.6m
Judith McHale
Independent Director8.83yrsUS$264.73k0.0098%
$ 509.3k
Joel Fleishman
Independent Director21.67yrsUS$299.73k0.015%
$ 798.9k
Hubert Joly
Independent Director11.25yrsUS$269.73k0.018%
$ 923.0k
Angela Ahrendts
Independent Director2.08yrsUS$230.04k0.0015%
$ 78.4k
Michael George
Independent Director2.33yrsUS$280.04k0.0040%
$ 207.7k
Darren Walker
Independent Director0.17yrno datano data
Linda Kozlowski
Independent Director2.08yrsUS$245.04k0.0015%
$ 78.4k

3.8yrs

Average Tenure

60.5yo

Average Age

Experienced Board: RL's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Ralph Lauren Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ralph Lauren Corporation
  • Ticker: RL
  • Exchange: NYSE
  • Founded: 1967
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: US$5.191b
  • Shares outstanding: 73.04m
  • Website: https://www.ralphlauren.com

Number of Employees


Location

  • Ralph Lauren Corporation
  • 650 Madison Avenue
  • New York
  • New York
  • 10022
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RLNYSE (New York Stock Exchange)YesClass A Common StockUSUSDJun 1997
PRLMUN (Boerse Muenchen)YesClass A Common StockDEUSDJun 1997
0KTSLSE (London Stock Exchange)YesClass A Common StockGBUSDJun 1997
RL *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNJun 1997
R1LC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 SHS UNSPONBRBRLJan 2020

Biography

Ralph Lauren Corporation designs, markets, and distributes lifestyle products in North America, Europe, Asia, and internationally. The company offers apparel, including a range of men’s, women’s, and child ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/27 05:48
End of Day Share Price2020/09/25 00:00
Earnings2020/06/27
Annual Earnings2020/03/28


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.