Top 3 Sources of Value for Polo Ralph Lauren

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Polo Ralph Lauren (NYSE:RL) is a leading American luxury lifestyle company that specializes in high-end apparel for men and women as well as accessories, fragrance and home decor.  The company competes with other premium apparel and accessories players like Coach ( COH ), Liz Claiborne (NYSE:LIZ) and Ann ( ANN ).

Over the past one year, Polo Ralph Lauren stock has jumped by over 50% and now trades at $120-$130 range. With the firm's Q4'11 earnings to be released on Wednesday, May 25 th , we take a look at what makes up our $111 Trefis price estimate for Polo Ralph Lauren , which is at a discount of ~15% to the stock's market price.

3 Key Drivers for Polo Ralph Lauren's Stock

1) Ralph Lauren factory stores - represents 34% of the company's stock value

Ralph Lauren factory stores in the U.S., Europe and Japan offer selections of men's wear, women's wear, children's apparel, accessories, home furnishings and fragrances. In addition, Polo sells excess and out-of-season products through its retail factory stores targeting the value conscious consumers.

See the top forecasts for Ralph Lauren factory stores

2) Specialty stores & other department stores - 25%

Specialty stores and Other Department stores offer Ralph Lauren branded products in the U.S. and internationally. This division excludes products distributed through the Macy's and Dillard's department stores which constitute a significant portion of Ralph Lauren's overall department store distribution. We have shown sales through Macy's and Dillard's department stores in a separate division within our analysis of Polo Ralph Lauren.

The entire range of Ralph Lauren branded products are sold through this division, though some brands are available at select department and specialty stores only.

See the top forecasts for specialty stores & other department stores

3) Ralph Lauren, Club Monaco & Rugby stores - 20%

Ralph Lauren, Club Monaco & Rugby stores focus on showcasing the "World of Ralph Lauren" by offering a wide selection of luxury products to customers.

  1. Ralph Lauren stores feature the full-breadth of the Ralph Lauren apparel, accessory and home product assortments.
  2. Club Monaco stores feature updated fashion apparel and accessories for both men and women.
  3. Rugby stores offer aspirational lifestyle collection of apparel and accessories for men and women. The brand is characterized by a youthful, preppy attitude which resonates throughout the line and the store experience.

See the top forecasts for Ralph Lauren, Club Monaco & Rugby stores

See our full analysis for Polo Ralph Lauren



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks , US Markets

Referenced Stocks: ANN , COH

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