Ralph LaurenFRA:PRL +0.48%85 Operating Margin % is 11.03% as of Mar. 2026, which is 5% below its 10-year median of 11.56. GuruFocus rates FRA:PRL with a GF Score™ of 85/100 and a GF Value™ of €226.24 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,043 Manufacturing - Apparel & Accessories companies, Ralph Lauren ranks better than 90.12% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Ralph Lauren's Operating Income for the
three
months ended in Mar. 2026 was €189 Mil. Ralph Lauren's Revenue for the
three
months ended in Mar. 2026 was €1,712 Mil. Therefore, Ralph Lauren's Operating Margin % for the quarter that ended in Mar. 2026 was 11.03%.
Good Sign:
Ralph Lauren Corp operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Ralph Lauren's Operating Margin % or its related term are showing as below:
FRA:PRL'
s Operating Margin % Range Over the Past 10 Years
Min: 5.06 Med: 11.56 Max: 15.99
Current: 15.99
FRA:PRL's Operating Margin % is ranked better than 90.12% of 1043
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 4.08
vs FRA:PRL: 15.99
Ralph Lauren's 5-Year Average Operating Margin % Growth Rate was 18.40% per year.
Ralph Lauren's Operating Income for the
three
months ended in Mar. 2026 was €189 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was €1,114 Mil.
Ralph Lauren (FRA:PRL) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Ralph Lauren Operating Margin % Related Terms
Ralph Lauren Operating Margin % Historical Data
* Premium members only.
The historical data trend for Ralph Lauren's Operating 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.
FRA:PRL vs LEVI, VFC, PVH: Operating Margin % Comparison
For the Apparel Manufacturing subindustry, Ralph Lauren's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Ralph Lauren's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Ralph Lauren's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Ralph Lauren's Operating Margin % for the fiscal year that ended in Mar. 2026 is calculated as
* 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.
Ralph Lauren (FRA:PRL) has a Operating Margin % of 11.03% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Ralph Lauren and its competitors. This is near median its historical median of 11.56. Over the past decade, Ralph Lauren's Operating Margin % has ranged from 5.06 to 15.99. According to the industry distribution chart, Ralph Lauren ranks #103 out of 1043 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 9.9%.
Is Ralph Lauren's Operating Margin % too high?
Ralph Lauren's current Operating Margin % of 11.03% is near median its 10-year median of 11.56. Over the past 10 years, this metric has ranged from a low of 5.06 to a high of 15.99. The Manufacturing - Apparel & Accessories industry median Operating Margin % is 4.08. Ralph Lauren's value of 11.03% is 170.3% above this industry median. Based on the distribution chart, Ralph Lauren ranks #103 out of 1043 companies in the Manufacturing - Apparel & Accessories industry, which is in the top quartile — a strong position relative to peers. Overall, Ralph Lauren has a GF Score™ of 85/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ralph Lauren's Operating Margin % compare to LEVI and VFC?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Ralph Lauren ranks #103 out of 1043 companies for Operating Margin %. This places Ralph Lauren in the top 10% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 4.08. Ralph Lauren's value of 11.03% is 170.3% above this benchmark. Historically, Ralph Lauren's own Operating Margin % has ranged from 5.06 to 15.99 over the past decade. While the company's 10-year median is 11.56 vs. the industry median of 4.08, Ralph Lauren has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Manufacturing - Apparel & Accessories company?
The median Operating Margin % among Manufacturing - Apparel & Accessories companies is 4.08, based on 1,043 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ralph Lauren's current Operating Margin % of 11.03% is 170.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Ralph Lauren and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Operating Margin % is 4.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ralph Lauren's current Operating Margin % is 11.03%, which is near median its own 10-year median of 11.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ralph Lauren stock overvalued right now?
Based on GuruFocus' analysis, Ralph Lauren (FRA:PRL) is currently considered Significantly Overvalued. The stock's GF Value™ is €226.24, compared to a current price of €354.90 — trading 56.9% above its estimated fair value. The current Operating Margin % is 11.03%, which is near median its 10-year median of 11.56 and 170.3% above the Manufacturing - Apparel & Accessories industry median of 4.08. Ralph Lauren's overall GF Score™ is 85/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Ralph Lauren (FRA:PRL), the current Operating Margin % is 11.03% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Ralph Lauren (FRA:PRL) Overvalued in 2026?
Based on GuruFocus' analysis, Ralph Lauren stock appears to be overvalued.
The current stock price of €354.90 is trading 56.9% above its estimated GF Value™ of €226.24.
GuruFocus considers Ralph Lauren to be Significantly Overvalued.
Key valuation signals for FRA:PRL:
Operating Margin %: 11.03% (near median its 10-year median of 11.56)
GF Value™: €226.24 vs. price of €354.90 (56.9% above fair value)
Industry Position: 170.3% above the Manufacturing - Apparel & Accessories median (#103 of 1043)
No single metric tells the full story. See the FRA:PRL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded by designer Ralph Lauren (current executive chairman and chief creative officer) in 1967 in New York City, Ralph Lauren Corp. designs, markets, and distributes lifestyle merchandise in North America (41% of fiscal 2026 sales), Europe (31%), and Asia (26%). Best known for its iconic polo shirts, its products also include other types of 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.
85GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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