Ralph LaurenFRA:PRL -1.53%85 Pretax Margin % is 9.76% as of Mar. 2026, which is 2% below its 10-year median of 9.99. GuruFocus rates FRA:PRL with a GF Score™ of 85/100 and a GF Value™ of €227.27 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,042 Manufacturing - Apparel & Accessories companies, Ralph Lauren ranks better than 86.66% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Ralph Lauren's Pre-Tax Income for the
three
months ended in Mar. 2026 was €167 Mil. Ralph Lauren's Revenue for the
three
months ended in Mar. 2026 was €1,712 Mil. Therefore, Ralph Lauren's pretax margin for the quarter that ended in Mar. 2026 was 9.76%.
The historical rank and industry rank for Ralph Lauren's Pretax Margin % or its related term are showing as below:
FRA:PRL'
s Pretax Margin % Range Over the Past 10 Years
Min: -1.7 Med: 9.99 Max: 14.51
Current: 14.51
FRA:PRL's Pretax Margin % is ranked better than 86.66% of 1042
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 3.525
vs FRA:PRL: 14.51
Ralph Lauren (FRA:PRL) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Ralph Lauren Pretax Margin % Related Terms
Ralph Lauren Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Ralph Lauren's Pretax 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: Pretax Margin % Comparison
For the Apparel Manufacturing subindustry, Ralph Lauren's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Ralph Lauren's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Ralph Lauren's Pretax Margin % falls into.
* 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 Pretax Margin % of 9.76% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Ralph Lauren and its competitors. This is near median its historical median of 9.99. According to the industry distribution chart, Ralph Lauren ranks #139 out of 1042 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 13.3%.
Is Ralph Lauren's Pretax Margin % too high?
Ralph Lauren's current Pretax Margin % of 9.76% is near median its 10-year median of 9.99. The Manufacturing - Apparel & Accessories industry median Pretax Margin % is 3.53. Ralph Lauren's value of 9.76% is 176.9% above this industry median. Based on the distribution chart, Ralph Lauren ranks #139 out of 1042 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 Pretax Margin % compare to LEVI and VFC?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Ralph Lauren ranks #139 out of 1042 companies for Pretax Margin %. This places Ralph Lauren in the top 13% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 3.53. Ralph Lauren's value of 9.76% is 176.9% above this benchmark. While the company's 10-year median is 9.99 vs. the industry median of 3.53, 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 Pretax Margin % for a Manufacturing - Apparel & Accessories company?
The median Pretax Margin % among Manufacturing - Apparel & Accessories companies is 3.53, based on 1,042 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ralph Lauren's current Pretax Margin % of 9.76% is 176.9% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Ralph Lauren and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Pretax Margin % is 3.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ralph Lauren's current Pretax Margin % is 9.76%, which is near median its own 10-year median of 9.99. 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 €227.27, compared to a current price of €353.80 — trading 55.7% above its estimated fair value. The current Pretax Margin % is 9.76%, which is near median its 10-year median of 9.99 and 176.9% above the Manufacturing - Apparel & Accessories industry median of 3.53. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Ralph Lauren (FRA:PRL), the current Pretax Margin % is 9.76% 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 €353.80 is trading 55.7% above its estimated GF Value™ of €227.27.
GuruFocus considers Ralph Lauren to be Significantly Overvalued.
Key valuation signals for FRA:PRL:
Pretax Margin %: 9.76% (near median its 10-year median of 9.99)
GF Value™: €227.27 vs. price of €353.80 (55.7% above fair value)
Industry Position: 176.9% above the Manufacturing - Apparel & Accessories median (#139 of 1042)
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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