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Ralph Lauren Corporation

RL
78
Apparel - Manufacturers · Consumer Cyclical
Also trades as: 0KTS.L
Price
$372.59
+0.07 (+0.02%)
Market Cap
$22.73B
Winston Score
78
Winston is happy
A high-quality business with solid fundamentals.
Data as of Aug 23, 2026 · filings through Jun 27, 2026
How the score breaks down
Quality
Exceptional
Growth
Exceptional
Cash Flow
Exceptional
Stability
Exceptional
Valuation
Good
Dividends
Good

Share count falling — buybacks

16.2% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 74.3M (2022) → 62.3M (2026)

Winston Score History

The full picture

Ralph Lauren designs and sells clothing, accessories, and home goods under brand names like Polo Ralph Lauren, Lauren, and Club Monaco. The company targets middle-to-upper-income shoppers who want a classic American lifestyle look. It sells through its own stores, its website, and department stores around the world.

Ralph Lauren makes money by selling products directly to consumers and by wholesaling goods to retailers. It operates globally, with meaningful revenue from North America, Europe, and Asia, and generates roughly $7 billion in annual revenue. The company's main competitive advantage is its strong brand identity, which lets it charge premium prices and maintain gross margins near 70%. The key growth opportunity is expanding its direct-to-consumer business and growing its presence in Asia, particularly China, though a slowdown in consumer spending or a weakening luxury market could pressure sales.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+14.0% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+20.8% YoY

YoY Growth Rate

Steady EPS growth

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

3.1%ownership

Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$2.0B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Ralph Lauren Corporation is a rare growth stock that's already generating positive cash flow while growing at 14%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale
Gross Margin
73.7%
Premium pricing power — 73.7% gross margin
Profit after running costs
Operating Margin
17.5%
Healthy — 17.5% operating margin
Return on the money invested
ROCE
31.5%
Exceptional — 31.5% return on capital

ROIC above 25%. Every dollar invested in the business earns more than 25 cents back per year.

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Growth

Sales growth
Sales YoY
+14.7%
Fast-growing sales (+14.7% YoY)
Profit growth
EPS YoY
+25.7%
Earnings growing fast (+25.7% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is
EPS Consistency
8/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash
Cash Conversion
134%
Turns 134% of profit into real cash
Spare cash per sale
FCF Margin
12.5%
Converts sales into free cash efficiently (12.5%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns
Debt / Equity
0.46
Conservative — low debt load (0.46)
Covers its interest
Interest Cover
22.41x
Comfortably covers interest (22.4x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
23.2x
Growth-priced — P/E 23.2

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year
P/E vs Forward
+4.3
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (23.2 → 18.9)

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Dividends

Dividend
Dividend Yield
0.98%
Small dividend — 0.98% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record
Dividend Growth
+10.3%
Dividend growing fast (10.3% YoY)

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