Is the business good?
How good a business is RL?
Ralph Lauren Corporation earns 46% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
46%
Return on invested capital · cost of capital 9.0% · 37 points above what the capital costs: growth creates value
- Operating margin
- 15%
Operating margin · Apparel Manufacturing median 6.9% · 12 months to Q4 2026
- Cash conversion
- 0.80×
Cash conversion · 1.37× a year ago · some of the reported profit has not turned into cash yet
- Gross margin
- 70%
Gross margin
| Year | Operating margin |
|---|---|
| FY2021 | −0.99% |
| FY2022 | 13% |
| FY2023 | 11% |
| FY2024 | 11% |
| FY2025 | 13% |
| FY2026 | 15% |
Details›
- Gross margin12 months to Q4 2026
- 70%
- Operating margin12 months to Q4 2026
- 15%
- Net margin12 months to Q4 2026
- 12%
- Free cash flow margin
- 9.3%
- Revenue, trailing twelve months
- $8.11B
- Free cash flow, trailing twelve months
- $752M
- Net income, trailing twelve months
- $941M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 46%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Apparel Manufacturing
Ranks #1 of 11 by Smart Score