Ralph Lauren Corporation (RL)
NYSEConsumer DiscretionaryApparel ManufacturingSnapshot 2026-07-07
$395.27-0.26%
Close 2026-07-07 · 1-day change
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Track RL free→Intact: The reason to own it still holds.
Ralph Lauren grew revenue 17% last quarter. It aims for 5-6% revenue growth next year. The company plans to expand profit margin by 40-60 basis points in fiscal 2027. Free cash flow is strong and management is stable.
Revenue growth could slow below 5%. Profit margin expansion may stall. Competition could hurt sales and profits.
The price is about 21% above our fair value near $327. Analysts expect about 6.5% revenue growth. Our fair value is 25% below the Street median, so the price is stretched versus our view.
Breaks if: Free cash flow falls below $2 billion in FY 2028
Breaks if: Operating margin expansion less than 40 basis points in FY 2027
Standing thesis, reviewed periodically — not a price target or advice.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Ralph Lauren aims to expand its operating margin by 40 to 60 basis points in fiscal year 2027.
Stated in 3 of last 3 quarters. Operating income increased from $155M in 2025-Q4 to $471.3M in 2026-Q3, indicating progress. The trajectory shows delivering on margin expansion.
“The Company expects operating margin for Fiscal 2027 to expand approximately 40 to 60 basis points.”
“The Company now expects operating margin for Fiscal 2026 to expand approximately 100 to 140 basis points.”
“Operating margin for Fiscal 2026 to expand modestly in constant currency.”
Breaks if: YoY revenue growth falls below 5% in FY 2027
Ralph Lauren plans to increase its revenue by mid-single digits in fiscal year 2027.
Stated in 3 of last 3 quarters. Revenue grew from $1.69B in 2025-Q4 to $2.41B in 2026-Q3, showing progress towards the mid-single digit growth target. The trajectory is delivering.
“The Company expects constant currency revenues to increase approximately mid-single digits.”
“The Company now expects revenues to increase high-single to low-double digits.”
“The Company expects revenues to increase approximately low-single digits.”