After fifteen years of stagnation on the stock market, its valuation has exploded since 2023, literally tripling in the space of thirty-six months. This momentum continued in the first half of the year, with sales growing by 15%. 

At constant exchange rates, however, Ralph Lauren said it expects growth to slow to almost three times less for the full year 2026, due to the depreciation of the dollar.

Nevertheless, the recent commercial performance of the group led by Frenchman Patrice Louvet commands respect, especially in a sector that has been hit hard by tariffs and sudden changes in public taste.

But the king of American vintage is playing a tune that is very much in tune with the times. The younger generation is returning to the classics, and Ralph Lauren is winning them over with its distinctive touch, both in its collections and on social media. 

His clever positioning—two notches above traditional ready-to-wear, one notch below luxury brands—is another asset that he skillfully exploits.

Does this mean that the resurrection is real and here to stay? This remains to be confirmed, as last year's sales were still below the level of ten years ago.

Nevertheless, following a significant expansion in margins—read: well-absorbed price increases—it is true that pre-tax profit and free cash flow almost doubled over the period, after a marked downturn since early 2024.

At the same time, the group's management has won the approval of its shareholders. Over the last decade, it has reduced its debt and directed most of its profits towards well-timed share buybacks, typically at multiples of ten times operating profit before investments, or EBITDA. 

However, based on comparable transactions in the sector, there is little doubt that Ralph Lauren would command a value of at least fifteen times EBITDA on the private market.

After showing a remarkable lack of interest—between 2017 and 2022, the enterprise value was only six to eight times EBITDA—the market has once again turned its favor toward Ralph Lauren, no doubt in light of its success with Gen Z. 

The stock is now trading at its highest valuation multiples in twenty years. It is therefore expected to deliver, with little room for error.