NYSE:RL
Polo Ralph Lauren Corp. (RL)
Financials 
Technical Analysis 
Jul 26, 2026, 12:00 amThis summary was created by AI, based on 2 opinions in the last 12 months.
Polo Ralph Lauren Corp., symbol RL-N, has demonstrated notable performance, particularly with a share repurchase plan that has reduced outstanding shares by 31% since the end of 2015. The stock has mirrored the S&P's trajectory over this period, yet has seen a remarkable increase of nearly 60% this year alone, in contrast to the struggles faced by many consumer stocks. The brand also gained visibility as Team USA's outfit for the Olympics. Despite a 32% rise in a challenging year for apparel, investor sentiment wavered following their recent investor day, leading to a 2.7% decline in share price due to underwhelming financial targets despite promising steady margin expansion. The management's focus on improved marketing, customer retention, and growth in targeted areas, particularly in menswear, women's outerwear, key cities, and Asian markets, coupled with a valuation of 20x PE, suggests that RL has room for continued growth and should trade at a premium compared to the S&P.
It is difficult to predict where consumer preferences are going to be in terms of what they buy next year. This company’s focus has been to expand internationally. Right now about 70% of their revenues come from the US. About 13% of their revenue comes from China, and they want to get that up to 20%. They want to grow their accessories line as they feel accessories don’t go out of favour as quickly as clothing. Also, want to beef up their sports apparel line that they are going to roll out in the fall. Have some good growth initiatives on the horizon, but there is going to be a bridging period going from the US globally, and so far they have not been able to execute that.
Ralph Lauren (RL-N) or Gap (GPS-N)? Both of these are very reliant on the US consumer. This one generates about 70% of its revenues from the US while Gap is 80%. Comparing these he would probably favour Gap, primarily because they reach a wider scale of consumer. This one has a great balance sheet with essentially no debt and $1 billion of cash and is looking at growing in Asia, where revenues are around 13%, which they want to get up to 20%. He doesn’t see anything wrong with either of these companies, but would probably look at a name like Nordstrom (JWN-N) instead, which gives you 500 brands.
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He is looking for a retailer and a fixer-upper, and this one looks awful. It is going to take a little bit of heart to buy here, but it is a name that is great. It has shown resilience and has worked hard at certain levels. The last time it was at $80 was in 2010. It tested it at the market selloff, but in here it is cheap. It is going to take some news to move it higher, and he doesn’t see a lot of downside. Just one half decent quarter and it is getting back up over $100.