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Ralph Lauren (Ralph Lauren) Gross Margin %

: 66.49% (As of Dec. 2023)
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Gross Margin % is calculated as gross profit divided by its revenue. Ralph Lauren's Gross Profit for the three months ended in Dec. 2023 was $1,286 Mil. Ralph Lauren's Revenue for the three months ended in Dec. 2023 was $1,934 Mil. Therefore, Ralph Lauren's Gross Margin % for the quarter that ended in Dec. 2023 was 66.49%.


The historical rank and industry rank for Ralph Lauren's Gross Margin % or its related term are showing as below:

RL' s Gross Margin % Range Over the Past 10 Years
Min: 54.88   Med: 60   Max: 66.7
Current: 65.7


During the past 13 years, the highest Gross Margin % of Ralph Lauren was 66.70%. The lowest was 54.88%. And the median was 60.00%.

RL's Gross Margin % is ranked better than
95.05% of 1031 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 25.22 vs RL: 65.70

Ralph Lauren had a gross margin of 66.49% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Ralph Lauren was 1.90% per year.


Ralph Lauren Gross Margin % Historical Data

The historical data trend for Ralph Lauren's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Ralph Lauren Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 61.56 59.31 65.02 66.70 64.65

Ralph Lauren Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 64.98 61.70 68.96 65.53 66.49

Competitive Comparison

For the Apparel Manufacturing subindustry, Ralph Lauren's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Ralph Lauren Gross Margin % Distribution

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Ralph Lauren's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Ralph Lauren's Gross Margin % falls into.



Ralph Lauren Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Ralph Lauren's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )=Gross Profit (A: Mar. 2023 ) / Revenue (A: Mar. 2023 )
=4165.8 / 6443.6
=(Revenue - Cost of Goods Sold) / Revenue
=(6443.6 - 2277.8) / 6443.6
=64.65 %

Ralph Lauren's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=1286 / 1934
=(Revenue - Cost of Goods Sold) / Revenue
=(1934 - 648) / 1934
=66.49 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Ralph Lauren  (NYSE:RL) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Ralph Lauren had a gross margin of 66.49% for the quarter that ended in Dec. 2023 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Ralph Lauren Gross Margin % Related Terms

Thank you for viewing the detailed overview of Ralph Lauren's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Ralph Lauren (Ralph Lauren) Business Description

Traded in Other Exchanges
Address
650 Madison Avenue, New York, NY, USA, 10022
Founded by designer Ralph Lauren in 1967 in New York City, Ralph Lauren Corp. designs, markets, and distributes lifestyle products in North America, Europe, and Asia. Its products include apparel, footwear, eyewear, jewelry, handbags, home goods, and fragrances. The company's brands include Ralph Lauren Collection, Polo Ralph Lauren, and Lauren Ralph Lauren. Distribution channels for Ralph Lauren include wholesale (department stores and specialty stores), retail (company-owned retail stores and e-commerce), and licensing.
Executives
Halide Alagoz officer: Chief Product Officer RALPH LAUREN CORPORATION, 650 MADISON AVENUE, NEW YORK NY 10022
Patrice Louvet director, officer: President and CEO ONE PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202
Wei Zhang director RALPH LAUREN CORPORATION, 650 MADISON AVENUE, NEW YORK NY 10022
Debra S. Cupp director RALPH LAUREN CORPORATION, 650 MADISON AVENUE, NEW YORK NY 10022
Andrew Howard Smith officer: EVP, Chief Commercial Officer RALPH LAUREN CORPORATION, 650 MADISON AVENUE, NEW YORK NY 10022
Hubert Joly director C/O BEST BUY CO, INC., 7601 PENN AVENUE SOUTH, RICHFIELD MN 55423
Jane Nielsen officer: Corp. Sr. Vice President, CFO 516 WEST 34TH STREET, NEW YORK NY 10001
Michael A George director
Valerie B Jarrett director USG CORPORATION, 125 SOUTH FRANKLIN STREET, CHICAGO IL 60606
Darren Walker director PEPSICO, INC., 700 ANDERSON HILL ROAD, PURCHASE NY 10577
Lauren Family, L.l.c. 10 percent owner 1065 AVENUE OF THE AMERICAS, 12TH FLOOR, NEW YORK NY 10018
David R. Lauren director, officer: Vice Chair, Chief Innovation RALPH LAUREN CORPORATION, 650 MADISON AVENUE, NEW YORK NY 10022
Joyce F Brown director C/O RALPH LAUREN CORPORATION, 650 MADISON AVENUE, NEW YORK NY 10022
Valerie Hermann officer: Pres., RL Luxury Collections RALPH LAUREN CORPORATION, 650 MADISON AVENUE, NEW YORK NY 10022
Ricky Lauren 10 percent owner C/O TIEDEMANN ADVISORS, 520 MADISON AVE, NEW YORK NY 10022

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