Ralph Lauren Is Back in Style -- and Handing Cash to Shareholders
Ralph Lauren (NYSE:RL) wrapped up fiscal 2025 on a high note, outpacing expectations with 8% revenue growth in Q4 and a 13% increase in direct-to-consumer comparable sales. Adjusted earnings rose to $2.27 per share, marking strong execution amid global uncertainty. With over $2 billion in cash on hand and inventories in check, RL's board approved a 10% dividend increase and expanded its share repurchase authorization by $1.5 billionfurther cementing confidence in the brand's financial foundation.
Looking ahead, RL expects low-single-digit revenue growth and modest operating margin expansion for Fiscal 2026. Management remains cautiously optimistic, citing a resilient consumer ecosystem across key markets, especially in Asia and Europe. A focus on higher-margin categories like outerwear, handbags, and premium collections is expected to sustain pricing power and offset inflationary and tariff pressures.
From a long-term lens, RL's fundamentals appear solid. As seen in the chart, free cash flow per sharewhile fluctuatinghas shown a clear upward trajectory, recently reaching record highs. Dividends, despite a dip during the 2020 COVID period, have been consistently paid and are now rising again. With free cash flow outpacing dividend payouts most of the time, RL seems well-positioned to keep rewarding shareholders while navigating macro headwinds.
This article first appeared on GuruFocus.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
38 minutes ago
- Yahoo
Deutsche Bank Goes Bullish on Luxury Brand Ralph Lauren's Stock
Deutsche Bank resumed coverage of Ralph Lauren Friday, giving its shares a "buy" rating and relatively bullish price target. The retailer's stock may even be on par with luxury European fashion houses, the analysts said. They think Ralph Lauren is poised to gain market share and expand across geographies and Lauren is a luxury brand with an appealing stock, according to Deutsche Bank analysts. The bank on Friday resumed coverage of Ralph Lauren (RL) with a 'buy' rating and a price target of $343—roughly 24% above where shares closed Thursday, and the second-highest tracked by Visible Alpha. The average price target among analysts that follow Ralph Lauren and polled by Visible Alpha was a bit above $327. 'We see [Ralph Lauren] as a market share gainer, with growth levers across geographies, channels, and categories more than offsetting reduced wholesale doors, ultimately positioning the brand closer to European luxury peers,' said Deutsche Bank. Ralph Lauren stands out thanks to its strong fundamentals, pricing power, and limited sourcing from China, analysts said. Exports from China are currently subject to a minimum 30% import tax in the U.S. Ralph Lauren said last week it was raising prices in North America this fall and assessing whether to increase them further as a way to offset the cost of tariffs. Still, the retailer an audience that spans entry-level and aspirational customers, as well as traditional luxury clientele, the analysts said. This allows Ralph Lauren to "capture consumers trading both up and down,' they said. Ralph Lauren had a strong holiday season, allowing the retailer to ease up on discounts and sending its stock to an all-time high in February. Shares have since come down, but remain up some 20% this year. Ralph Lauren stock closed Friday near $277. Read the original article on Investopedia Sign in to access your portfolio
Yahoo
an hour ago
- Yahoo
Celanese Corporation to Participate in Fireside Discussion at Deutsche Bank 16th Annual Global Industrials and Materials Conference
DALLAS, May 30, 2025--(BUSINESS WIRE)--Celanese Corporation (NYSE: CE), a global specialty materials and chemical company, today announced that Scott Richardson, President and Chief Executive Officer, will participate in a fireside discussion at the Deutsche Bank Global Industrials and Materials Conference on Thursday, June 5, 2025, at 11:50 AM Eastern Time. A live webcast of the discussion and a replay of the webcast will be available at on the Events Calendar page. The replay is expected to be available until June 5, 2026. About Celanese Celanese Corporation is a global leader in chemistry, producing specialty material solutions used across most major industries and consumer applications. Our businesses use our chemistry, technology and commercial expertise to create value for our customers, employees and shareholders. We support sustainability by responsibly managing the materials we create and growing our portfolio of sustainable products to meet customer and societal demand. We strive to make a positive impact in our communities and to foster inclusivity across our teams. Celanese Corporation employs more than 11,000 employees worldwide with 2024 net sales of $10.3 billion. View source version on Contacts Investor Relations Bill CunninghamPhone: +1 302 772 Media - SchulerPhone: +1 972 443 4400media@ Media – EuropePetra CzuglerPhone: +49 69 45009 Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Business Wire
an hour ago
- Business Wire
Celanese Corporation to Participate in Fireside Discussion at Deutsche Bank 16 th Annual Global Industrials and Materials Conference
DALLAS--(BUSINESS WIRE)--Celanese Corporation (NYSE: CE), a global specialty materials and chemical company, today announced that Scott Richardson, President and Chief Executive Officer, will participate in a fireside discussion at the Deutsche Bank Global Industrials and Materials Conference on Thursday, June 5, 2025, at 11:50 AM Eastern Time. A live webcast of the discussion and a replay of the webcast will be available at on the Events Calendar page. The replay is expected to be available until June 5, 2026. About Celanese Celanese Corporation is a global leader in chemistry, producing specialty material solutions used across most major industries and consumer applications. Our businesses use our chemistry, technology and commercial expertise to create value for our customers, employees and shareholders. We support sustainability by responsibly managing the materials we create and growing our portfolio of sustainable products to meet customer and societal demand. We strive to make a positive impact in our communities and to foster inclusivity across our teams. Celanese Corporation employs more than 11,000 employees worldwide with 2024 net sales of $10.3 billion.
