Image: Ralph Lauren’s shares have done quite well since the beginning of 2022.
For fiscal 2025, Ralph Lauren expects revenues to increase in the low-single digits on a constant currency basis, while it continues to expect its operating margin to increase 100-120 basis points in constant currency thanks to gross margin improvement and operating expense leverage. All told, we liked Ralph Lauren’s fiscal first quarter results and we’re particularly fans of its ability to drive strong free cash flow in excess of cash dividends paid. Our fair value estimate stands at $184 per share with the firm sporting a lofty Dividend Cushion ratio of 4.4.
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