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Analyzing Ralph Lauren’s Stock Returns

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Stock market performance

Ralph Lauren (RL) stock has surged more than 30% in the past year due to the company’s positive earnings surprise. Notably, Ralph Lauren has beaten Wall Street’s earnings expectations for 12 consecutive quarters. The company has also done better than the top-line forecasts for eight consecutive quarters. Ralph Lauren’s strategic initiatives are driving its margins higher. However, the sales will likely fall at least in the next fiscal year.

PVH (PVH), VF (VFC), and Michael Kors (KORS) have also delivered strong returns. The companies gained 48%, 40%, and 64% respectively, during the year. The S&P 500 Apparel and Accessories Index has increased 20% in the past year. The S&P 500 Apparel and Accessories Index has outperformed the S&P 500 Index, which has risen 14% during this period.

Dividends

Ralph Lauren has been a consistent dividend payer. The company announced a dividend of $0.50 per share for the fourth quarter. However, Ralph Lauren hasn’t grown its dividends in the last three years. The company has been paying $0.50 per share since fiscal 2016.

Ralph Lauren stock offers a one-year forward dividend yield of 2%. L Brands (LB), Hanesbrands (HBI), and Tapestry have higher dividend yields of 7.8%, 3.8%, and 3%, respectively.

Next, we’ll discuss Ralph Lauren’s valuations and earnings potential.

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