RL - The Pros And Cons Of Investing In Ralph Lauren Now
2024-04-04 09:25:00 ET
Summary
- Ralph Lauren Corporation has seen a significant increase in its stock price, outperforming the broader market.
- The company has shown improving sales figures, particularly in the Asia segment, and has experienced net income growth.
- Improving consumer confidence and profitability are also positive factors for the company. However, the valuation of the stock is currently unattractive.
Ralph Lauren Corporation ( RL ) designs, markets, and distributes lifestyle products in North America, and internationally. We have started covering the firm in December 2022 with an initial sell rating . The two main reasons for our bearish view back then can be summarized in the following bullet points:
- Deteriorating profitability at that time with contracting gross- and operating margins
- Overvaluation based on a set of traditional price multiples