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Financial Analysis for Ralph Lauren Corporation

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Financial Analysis for Ralph Lauren Corporation
Abstract

Ralph Lauren Corporation (NYSE:RL) is well known in the apparel clothing field. The corporation engages in the design, marketing and distribution of lifestyle product. This analysis paper will illustrate the current financial situation and forecast the future free cash flow based on the previous financial statement and financial data collected. These information and forecast are served for the potential investor to have a general understanding of RL Corporation and make the right choice on their money.

Financial Analysis for Ralph Lauren Corporation

Ralph Lauren, an American designer, established the brand Polo Ralph Lauren in 1967. At first, Ralph Lauren’s collection was men’s ties. In 1971, Polo Ralph Lauren started its first women’s collection of apparel and the first stand- alone store was opened in Beverly Hills, California. The company entered the international market in 1981. In 1997, the company went public on the New York Stock Exchange.

Ralph Lauren Corporation (NYSE: RL) is an upscale American lifestyle company and fashion retailer founded by American designer Ralph Lauren. The company focuses on high-end clothes for men and women, as well as accessories, footwear, fragrances, home (bedding, towels) and housewares; presents media content of its lifestyle; and it also runs a line of restaurants. By 2007, Ralph Lauren had over 35 boutiques in the United States and other international locations in London, Beijing, Tokyo, and Moscow. CNN Money published the new Fortune 500 on May 2012. RL Corporation was ranked at No. 431 this year, better than the No. 451 on last year’s ranking. Obviously, the world admits the RL Corporation’s improvement.

To illustrate the financial situation of Ralph Lauren, we should first have a look at the financial statements for the recently 3 years. The balance sheet for RL from 2010 to 2012 is showed under the Form 1. The income statement from 2010 to 2012 is


References: 3. Michael C. Ehrhardt, Eugene F. Brigham, 2011, . 6. "Our Flagships". Ralph Lauren Media, LLC. Retrieved May 10, 2012.
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