Table of Contents :
• Stock Rating & Target Price
• Investment Thesis
• Fundamental Models Used
• Company Description
• Corporate Timeline
• Key Metrics (KPI ) and Recently Reported Earnings Review
• Business Highlights, Strategic Announcements & Outlook
• Quarter-over-Quarter (Q-o-Q) and Year-over-Year (Y-o-Y) Growth Analysis
• Key Catalysts Driving Growth
• Historical Financial Statement Analysis & CAGR Trends
• Quarterly Key Financial Ratios and Performance Metrics
• Annual Financial Performance Analysis: Horizontal and Vertical Financial Analysis, Trends
• Financial Forecasts
• Annual Forecasts: Income Statement
• Annual Forecasts: Cash Flow Statements
• Net Debt Levels
• A Closer Look at DCF: Our Assumptions and Methodology
• Terminal Value Calculation
• Target Price Analysis
• Valuation Multiples
• Supplementary Valuation Analysis: Multiples Approach
• Scenario/Sensitivity Analysis – Base Case , Bull Case ,Bear Case
• Holistic Peer Review & Trading Comps: Financial Data, Operational Metrics, and Valuation Multiples
• Implied Price Per Share
• Ownership Activity/ Insider Trades
• Ownership Summary
• An analysis of ESG Risk Rating
• Key Professionals
• Key Board Members
• Key Risks Considerations
• Analyst Ratings
• Analyst Industry Views
• Disclosures
Ralph Lauren (RL) : strong DTC execution continues- breaking down on numbers, outlook and their 4 competitive & strategic levers !
Ralph Lauren’s Q2 FY2025 results highlighted strong operational execution despite macroeconomic uncertainty, with revenue of $1.73 billion, surpassing expectations by $44.92 million. This performance was driven by a 6% increase in constant currency and a 10% rise in retail comps, powered by strong DTC channel performance and a 10% increase in average unit retail (AUR). Gross margin expanded by 170 basis points to 67.1%, and adjusted EPS of $2.54 exceeded estimates by $0.12, reflecting cost efficiencies and growth momentum. However, GAAP EPS of $2.31 missed expectations due to non-recurring expenses. The company saw strong growth in international markets, particularly Asia (+10%) and Europe (+15%), with North America returning to growth (+3%) despite strategic wholesale exits. Core product categories like women’s apparel and handbags showed strong momentum, while DTC strength was evident across regions. Ralph Lauren raised its full-year guidance, expecting 3%-4% constant currency revenue growth and operating margin expansion to 13.6%-13.8%. Looking ahead, can Ralph Lauren sustain its strong DTC execution, leverage its product elevation and global expansion strategy, and drive durable growth amid macroeconomic uncertainties and competitive pressures?
