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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 7/10

vs
industry
vs
history
Cash to Debt 2.54
RL's Cash to Debt is ranked higher than
60% of the 733 Companies
in the Global Apparel Manufacturing industry.

( Industry Median: 3.05 vs. RL: 2.54 )
RL' s 10-Year Cash to Debt Range
Min: 0.18   Max: No Debt
Current: 2.54

Equity to Asset 0.67
RL's Equity to Asset is ranked higher than
71% of the 729 Companies
in the Global Apparel Manufacturing industry.

( Industry Median: 0.60 vs. RL: 0.67 )
RL' s 10-Year Equity to Asset Range
Min: 0.46   Max: 0.73
Current: 0.67

0.46
0.73
Interest Coverage 50.98
RL's Interest Coverage is ranked higher than
61% of the 480 Companies
in the Global Apparel Manufacturing industry.

( Industry Median: 58.82 vs. RL: 50.98 )
RL' s 10-Year Interest Coverage Range
Min: 4.67   Max: 1195.89
Current: 50.98

4.67
1195.89
F-Score: 7
Z-Score: 7.48
M-Score: -2.54
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 9/10

vs
industry
vs
history
Operating margin (%) 16.22
RL's Operating margin (%) is ranked higher than
92% of the 726 Companies
in the Global Apparel Manufacturing industry.

( Industry Median: 5.45 vs. RL: 16.22 )
RL' s 10-Year Operating margin (%) Range
Min: 5.27   Max: 16.22
Current: 16.22

5.27
16.22
Net-margin (%) 10.80
RL's Net-margin (%) is ranked higher than
89% of the 726 Companies
in the Global Apparel Manufacturing industry.

( Industry Median: 4.38 vs. RL: 10.80 )
RL' s 10-Year Net-margin (%) Range
Min: 2.66   Max: 10.8
Current: 10.8

2.66
10.8
ROE (%) 19.82
RL's ROE (%) is ranked higher than
92% of the 720 Companies
in the Global Apparel Manufacturing industry.

( Industry Median: 7.41 vs. RL: 19.82 )
RL' s 10-Year ROE (%) Range
Min: 7.32   Max: 44.99
Current: 19.82

7.32
44.99
ROA (%) 13.84
RL's ROA (%) is ranked higher than
94% of the 729 Companies
in the Global Apparel Manufacturing industry.

( Industry Median: 4.25 vs. RL: 13.84 )
RL' s 10-Year ROA (%) Range
Min: 3.64   Max: 20.34
Current: 13.84

3.64
20.34
ROC (Joel Greenblatt) (%) 64.68
RL's ROC (Joel Greenblatt) (%) is ranked higher than
94% of the 727 Companies
in the Global Apparel Manufacturing industry.

( Industry Median: 15.45 vs. RL: 64.68 )
RL' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 15.13   Max: 65.54
Current: 64.68

15.13
65.54
Revenue Growth (%) 14.70
RL's Revenue Growth (%) is ranked higher than
86% of the 533 Companies
in the Global Apparel Manufacturing industry.

( Industry Median: 4.00 vs. RL: 14.70 )
RL' s 10-Year Revenue Growth (%) Range
Min: 4.7   Max: 30.1
Current: 14.7

4.7
30.1
EBITDA Growth (%) 17.60
RL's EBITDA Growth (%) is ranked higher than
86% of the 443 Companies
in the Global Apparel Manufacturing industry.

( Industry Median: 2.40 vs. RL: 17.60 )
RL' s 10-Year EBITDA Growth (%) Range
Min: -3   Max: 37.9
Current: 17.6

-3
37.9
EPS Growth (%) 19.10
RL's EPS Growth (%) is ranked higher than
85% of the 423 Companies
in the Global Apparel Manufacturing industry.

( Industry Median: 1.20 vs. RL: 19.10 )
RL' s 10-Year EPS Growth (%) Range
Min: -20.2   Max: 40.4
Current: 19.1

-20.2
40.4
» RL's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2013

RL Guru Trades in Q1 2013

Jim Simons 156,300 sh (New)
Ray Dalio 3,580 sh (New)
Jeremy Grantham 11,210 sh (New)
Joel Greenblatt 5,116 sh (+87.13%)
Mario Gabelli 2,740 sh (+46.52%)
John Griffin 1,640,000 sh (unchged)
Eric Mindich Sold Out
Ron Baron 713,787 sh (-0.55%)
Steve Mandel 3,156,566 sh (-19.84%)
Lee Ainslie 794,110 sh (-56.17%)
Steven Cohen 123,427 sh (-82.64%)
» More
Q2 2013

RL Guru Trades in Q2 2013

Joel Greenblatt 21,491 sh (+320.07%)
Jim Simons 341,500 sh (+118.49%)
Jeremy Grantham 16,443 sh (+46.68%)
Ray Dalio Sold Out
Mario Gabelli 2,720 sh (-0.73%)
Ron Baron 693,751 sh (-2.81%)
John Griffin 1,380,000 sh (-15.85%)
Steve Mandel 2,630,438 sh (-16.67%)
Steven Cohen 101,917 sh (-17.43%)
Lee Ainslie 334,127 sh (-57.92%)
» More
Q3 2013

RL Guru Trades in Q3 2013

Louis Moore Bacon 19,500 sh (New)
Murray Stahl 2,018 sh (New)
Ray Dalio 82,536 sh (New)
Paul Tudor Jones 2,600 sh (New)
Lee Ainslie 914,767 sh (+173.78%)
Jeremy Grantham 30,741 sh (+86.95%)
Mario Gabelli 4,910 sh (+80.51%)
Steven Cohen 177,076 sh (+73.75%)
Jim Simons 438,100 sh (+28.29%)
Steve Mandel Sold Out
Ron Baron 691,724 sh (-0.29%)
Joel Greenblatt 15,735 sh (-26.78%)
John Griffin 913,000 sh (-33.84%)
» More
Q4 2013

RL Guru Trades in Q4 2013

Pioneer Investments 12,612 sh (New)
Murray Stahl 3,014 sh (+49.36%)
Louis Moore Bacon 28,000 sh (+43.59%)
Lee Ainslie 1,048,696 sh (+14.64%)
Mario Gabelli 5,610 sh (+14.26%)
Jeremy Grantham 34,696 sh (+12.87%)
Steven Cohen 183,837 sh (+3.82%)
Paul Tudor Jones 2,629 sh (+1.12%)
John Griffin Sold Out
Ron Baron 683,394 sh (-1.2%)
Ray Dalio 51,817 sh (-37.22%)
Jim Simons 250,100 sh (-42.91%)
Joel Greenblatt 1,422 sh (-90.96%)
» More
» Details

Insider Trades

Latest Guru Trades with RL

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
John Griffin 2013-12-31 Sold Out 1.8%$158.68 - $180.52 $ 154.38-9%0
Lee Ainslie 2013-12-31 Add 14.64%0.31%$158.68 - $180.52 $ 154.38-9%1048696
Joel Greenblatt 2013-12-31 Reduce -90.96%0.08%$158.68 - $180.52 $ 154.38-9%1422
Ray Dalio 2013-12-31 Reduce -37.22%0.04%$158.68 - $180.52 $ 154.38-9%51817
Steve Mandel 2013-09-30 Sold Out 2.2%$163 - $189.51 $ 154.38-11%0
Lee Ainslie 2013-09-30 Add 173.78%1.27%$163 - $189.51 $ 154.38-11%914767
John Griffin 2013-09-30 Reduce -33.84%0.98%$163 - $189.51 $ 154.38-11%913000
Ray Dalio 2013-09-30 New Buy0.11%$163 - $189.51 $ 154.38-11%82536
Joel Greenblatt 2013-09-30 Reduce -26.78%0.04%$163 - $189.51 $ 154.38-11%15735
Mario Gabelli 2013-09-30 Add 80.51%$163 - $189.51 $ 154.38-11%4910
Lee Ainslie 2013-06-30 Reduce -57.92%0.98%$165.93 - $189.56 $ 154.38-12%334127
John Griffin 2013-06-30 Reduce -15.85%0.55%$165.93 - $189.56 $ 154.38-12%1380000
Steve Mandel 2013-06-30 Reduce -16.67%0.47%$165.93 - $189.56 $ 154.38-12%2630438
Joel Greenblatt 2013-06-30 Add 320.07%0.12%$165.93 - $189.56 $ 154.38-12%21491
Ray Dalio 2013-06-30 Sold Out 0.01%$165.93 - $189.56 $ 154.38-12%0
Lee Ainslie 2013-03-31 Reduce -56.17%2.25%$149.92 - $178.06 $ 154.38-9%794110
Joel Greenblatt 2013-03-31 Add 87.13%0.02%$149.92 - $178.06 $ 154.38-9%5116
Ray Dalio 2013-03-31 New Buy0.01%$149.92 - $178.06 $ 154.38-9%3580
Mario Gabelli 2013-03-31 Add 46.52%$149.92 - $178.06 $ 154.38-9%2740
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on Ralph Lauren Corp

Ron Baron Comments on Ralph Lauren - Apr 24, 2013

Over the past decade, Ralph Lauren (RL) has transformed his business from a largely licensed, mens' apparel company into a global lifestyle brand, including womens' and childrens' apparel and accessories. Polo has advanced its global objectives by acquiring Ralph's company's former licensees in Europe and Asia. It was not inexpensive to acquire the licensed businesses, which have allowed Polo to grow much more rapidly.

From Ron Baron’s Baron Funds first quarter 2013 investor letter.


Check out Ron Baron latest stock trades

Baron Funds Comments on Ralph Lauren Corp. - Aug 23, 2012

From Ron Barons' second quarter letter:

Shares of leading apparel brand Ralph Lauren Corp. (RL) also declined on concerns surrounding its products' exposure to European consumers. The company's first quarter results were otherwise strong - highlights included 14% growth in sales and 32% growth in earnings. We believe that Ralph Lauren continued to reap benefits from its ongoing investments in sourcing, distribution, and e-commerce initiatives.
Check out Ron Baron latest stock trades

Top Ranked Articles about Ralph Lauren Corp

Numerous Billionaires Hold Four Undervalued Stocks
According to GuruFocus research, there are currently 88 U.S. companies listed as undervalued and predictable. When GuruFocus applied discounted cash flow and discounted earnings to top ranked predictable companies, and calculated their intrinsic values, these companies appeared to be undervalued. Read more about the assumptions and methodology used here. Read more...
Ron Baron Comments on Ralph Lauren
Over the past decade, Ralph Lauren (RL) has transformed his business from a largely licensed, mens' apparel company into a global lifestyle brand, including womens' and childrens' apparel and accessories. Polo has advanced its global objectives by acquiring Ralph's company's former licensees in Europe and Asia. It was not inexpensive to acquire the licensed businesses, which have allowed Polo to grow much more rapidly. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 19.30
RL's P/E(ttm) is ranked higher than
60% of the 578 Companies
in the Global Apparel Manufacturing industry.

( Industry Median: 18.70 vs. RL: 19.30 )
RL' s 10-Year P/E(ttm) Range
Min: 7.56   Max: 26.84
Current: 19.3

7.56
26.84
P/B 3.40
RL's P/B is ranked lower than
67% of the 701 Companies
in the Global Apparel Manufacturing industry.

( Industry Median: 1.54 vs. RL: 3.40 )
RL' s 10-Year P/B Range
Min: 1.18   Max: 4.74
Current: 3.4

1.18
4.74
P/S 2.00
RL's P/S is ranked lower than
73% of the 739 Companies
in the Global Apparel Manufacturing industry.

( Industry Median: 0.87 vs. RL: 2.00 )
RL' s 10-Year P/S Range
Min: 0.66   Max: 2.52
Current: 2

0.66
2.52
PFCF 28.30
RL's PFCF is ranked lower than
53% of the 420 Companies
in the Global Apparel Manufacturing industry.

( Industry Median: 19.57 vs. RL: 28.30 )
RL' s 10-Year PFCF Range
Min: 5.6   Max: 72.86
Current: 28.3

5.6
72.86
EV-to-EBIT 11.90
RL's EV-to-EBIT is ranked higher than
66% of the 612 Companies
in the Global Apparel Manufacturing industry.

( Industry Median: 14.28 vs. RL: 11.90 )
RL' s 10-Year EV-to-EBIT Range
Min: 4.3   Max: 16.4
Current: 11.9

4.3
16.4
PEG 1.10
RL's PEG is ranked higher than
68% of the 314 Companies
in the Global Apparel Manufacturing industry.

( Industry Median: 1.77 vs. RL: 1.10 )
RL' s 10-Year PEG Range
Min: 0.33   Max: 2.99
Current: 1.1

0.33
2.99
Shiller P/E 23.80
RL's Shiller P/E is ranked higher than
54% of the 329 Companies
in the Global Apparel Manufacturing industry.

( Industry Median: 20.05 vs. RL: 23.80 )
RL' s 10-Year Shiller P/E Range
Min: 10.33   Max: 40.12
Current: 23.8

10.33
40.12

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 1.10
RL's Dividend Yield is ranked lower than
75% of the 497 Companies
in the Global Apparel Manufacturing industry.

( Industry Median: 2.08 vs. RL: 1.10 )
RL' s 10-Year Dividend Yield Range
Min: 0.17   Max: 1.07
Current: 1.1

0.17
1.07
Dividend Payout 0.20
RL's Dividend Payout is ranked higher than
79% of the 403 Companies
in the Global Apparel Manufacturing industry.

( Industry Median: 0.34 vs. RL: 0.20 )
RL' s 10-Year Dividend Payout Range
Min: 0.03   Max: 1
Current: 0.2

0.03
1
Dividend growth (3y) 74.70
RL's Dividend growth (3y) is ranked higher than
98% of the 240 Companies
in the Global Apparel Manufacturing industry.

( Industry Median: 0.50 vs. RL: 74.70 )
RL' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 74.7
Current: 74.7

0
74.7
Yield on cost (5-Year) 14.37
RL's Yield on cost (5-Year) is ranked higher than
96% of the 517 Companies
in the Global Apparel Manufacturing industry.

( Industry Median: 2.20 vs. RL: 14.37 )
RL' s 10-Year Yield on cost (5-Year) Range
Min: 2.22   Max: 13.98
Current: 14.37

2.22
13.98
Share Buyback Rate 2.60
RL's Share Buyback Rate is ranked higher than
93% of the 362 Companies
in the Global Apparel Manufacturing industry.

( Industry Median: -0.50 vs. RL: 2.60 )
RL' s 10-Year Share Buyback Rate Range
Min: 9.1   Max: -2.6
Current: 2.6

Valuation & Return

vs
industry
vs
history
Price/Net Current Asset Value 47.60
RL's Price/Net Current Asset Value is ranked lower than
86% of the 267 Companies
in the Global Apparel Manufacturing industry.

( Industry Median: 7.80 vs. RL: 47.60 )
RL' s 10-Year Price/Net Current Asset Value Range
Min: 19.4   Max: 478.88
Current: 47.6

19.4
478.88
Price/Tangible Book 5.00
RL's Price/Tangible Book is ranked lower than
76% of the 670 Companies
in the Global Apparel Manufacturing industry.

( Industry Median: 1.90 vs. RL: 5.00 )
RL' s 10-Year Price/Tangible Book Range
Min: 2.49   Max: 11.02
Current: 5

2.49
11.02
Price/DCF (Projected) 1.20
RL's Price/DCF (Projected) is ranked higher than
63% of the 369 Companies
in the Global Apparel Manufacturing industry.

( Industry Median: 1.20 vs. RL: 1.20 )
RL' s 10-Year Price/DCF (Projected) Range
Min: 0.54   Max: 1.92
Current: 1.2

0.54
1.92
Price/Median PS Value 1.20
RL's Price/Median PS Value is ranked higher than
55% of the 693 Companies
in the Global Apparel Manufacturing industry.

( Industry Median: 1.10 vs. RL: 1.20 )
RL' s 10-Year Price/Median PS Value Range
Min: 0.42   Max: 1.57
Current: 1.2

0.42
1.57
Price/Peter Lynch Fair Value 1.10
RL's Price/Peter Lynch Fair Value is ranked higher than
66% of the 166 Companies
in the Global Apparel Manufacturing industry.

( Industry Median: 1.00 vs. RL: 1.10 )
RL' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.43   Max: 2.77
Current: 1.1

0.43
2.77
Price/Graham Number 2.00
RL's Price/Graham Number is ranked lower than
65% of the 551 Companies
in the Global Apparel Manufacturing industry.

( Industry Median: 1.20 vs. RL: 2.00 )
RL' s 10-Year Price/Graham Number Range
Min: 1.08   Max: 3.51
Current: 2

1.08
3.51
Earnings Yield (Greenblatt) 8.40
RL's Earnings Yield (Greenblatt) is ranked higher than
67% of the 665 Companies
in the Global Apparel Manufacturing industry.

( Industry Median: 6.90 vs. RL: 8.40 )
RL' s 10-Year Earnings Yield (Greenblatt) Range
Min: 6.1   Max: 23.3
Current: 8.4

6.1
23.3
Forward Rate of Return (Yacktman) 20.11
RL's Forward Rate of Return (Yacktman) is ranked higher than
87% of the 443 Companies
in the Global Apparel Manufacturing industry.

( Industry Median: 7.06 vs. RL: 20.11 )
RL' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 11.6   Max: 32.9
Current: 20.11

11.6
32.9

Business Description

Industry: Manufacturing - Apparel & Furniture » Apparel Manufacturing
Compare:VFC, BURBY, SGC, PVH, UA » details
Traded in other countries:PRL.Germany
Ralph Lauren Corp formerly Polo Ralph Lauren Corporation was incorporated in June 1997 under the laws of the State of Delaware. The Company is engaged in the design, marketing and distribution of premium lifestyle products, including men's, women's and children's apparel, accessories, fragrances and home furnishings. It operates in three distinct but integrated segments: Wholesale, Retail and Licensing. The Wholesale segment consists of women's, men's and children's apparel, accessories and related products which are sold in major department stores, specialty stores, golf and pro shops and the Company's owned and licensed retail stores in the U.S. and overseas. The Retail segment consists of the Company's retail operations, which sell products through its full-price and factory stores, its concessions-based shop-within-shops, as well as RalphLauren.com and Rugby.com, its e-commerce websites. The stores, concessions-based shop-within-shops and websites sell products purchased from the Company's licensees, suppliers and Wholesale segment. The Licensing segment generates revenues from royalties earned on the sale of the Company's apparel, home and other products internationally and domestically through licensing alliances. The licensing agreements grant the licensees rights to use the Company's various trademarks in connection with the manufacture and sale of designated products in specified geographical areas for specified periods. The Company's brand names include Ralph Lauren Women's Collection, Purple Label, Black Label, Blue Label, Polo Ralph Lauren, RRL, Ralph Lauren Childrenswear, Lauren by Ralph Lauren, RLX Ralph Lauren, Denim & Supply Ralph Lauren, Ralph Lauren, Rugby, Chaps, and Club Monaco, among others. It faces a number of intense competitive challenges from other domestic and foreign fashion-oriented apparel and casual apparel producers, some of which might be larger and more diversified and have greater financial and marketing resources than it has. It also faces increasing competition from companies selling apparel and home products through the Internet. Apparel and other products sold by the Company are subject to regulation in the U.S. and other countries by other governmental agencies, including, in the U.S., the Federal Trade Commission, U.S. Fish and Wildlife Service and the Consumer Products Safety Commission.

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