Is RALPH LAUREN CORP (RL) Halal?

NYSE Consumer Cyclical United States $19.9B
✓ HALAL
Confidence: 95/100
RALPH LAUREN CORP (RL) is Halal under 3 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 13.0% against the AAOIFI threshold of 30%, RALPH LAUREN CORP comfortably passes the key financial ratio tests. The company operates in the Consumer Cyclical sector (Apparel Manufacturing), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from March 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 13.0%
/ 30%
10.2%
/ 30%
3.0%
/ 30%
1.05%
/ 5%
✓ HALAL
DJIM 13.0%
/ 33%
10.2%
/ 33%
3.0%
/ 33%
1.05%
/ 5%
✓ HALAL
MSCI 37.9%
/ 33%
29.6%
/ 33%
8.7%
/ 33%
1.05%
/ 5%
✗ NOT HALAL
S&P 13.0%
/ 33%
10.2%
/ 33%
3.0%
/ 33%
1.05%
/ 5%
✓ HALAL
FTSE 37.9%
/ 33%
29.6%
/ 33%
8.7%
/ 50%
1.05%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
22.3
Forward: 18.2
EPS
$14.69
Dividend Yield
111.0%
Payout: 24.2%
P/B Ratio
6.9
EV/EBITDA
15.0
EV: $20.5B
Revenue
$7.1B
Growth: 12.2%
Beta
1.5
High volatility
Current Ratio
2.1

Profitability

Gross Margin 69.6%
Operating Margin 20.1%
Net Margin 11.7%
Return on Equity (ROE) 33.8%
Return on Assets (ROA) 9.6%

Cash Flow & Balance Sheet

Operating Cash Flow$1.2B
Free Cash Flow$1.0B
Total Debt$2.7B
Debt-to-Equity99.0
Current Ratio2.1
Total Assets$7.0B

Price & Trading

Last Close$332.73
50-Day MA$354.71
200-Day MA$326.96
Avg Volume613K
Beta1.5
52-Week Range
$176.61
$389.15

About RALPH LAUREN CORP (RL)

CEO
Mr. Patrice Jean Louis Louvet
Employees
15,000
Sector
Consumer Cyclical
Industry
Apparel Manufacturing
Country
United States
Exchange
NYSE
Market Cap
$19.9B
Currency
USD

Ralph Lauren Corporation designs, markets, and distributes lifestyle products in North America, Europe, Asia, and internationally. It offers apparel, including a range of men's, women's, and children's clothing; footwear and accessories, which comprise casual shoes, dress shoes, boots, sneakers, sandals, eyewear, watches, fashion and fine jewelry, scarves, hats, gloves, and umbrellas, as well as leather goods comprising handbags, luggage, small leather goods, and belts; home products, such as bed and bath lines, furniture, fabric and wall coverings, lighting, dining, floor coverings, decorative accessories, and giftware; and fragrances. The company sells apparel and accessories under the Ralph Lauren Collection, Ralph Lauren Purple Label, Polo Ralph Lauren, Double RL, Lauren Ralph Lauren, Polo Golf Ralph Lauren, Ralph Lauren Golf, RLX Ralph Lauren, Polo Ralph Lauren Children, and Chaps brands; women's fragrances under the Ralph Lauren Collection, Woman by Ralph Lauren, Romance Collection, and Ralph Collection brand names; and men's fragrances under the Ralph's Club, Purple Label, Polo Blue, Polo Red, Polo Green, Polo Black, Polo 67, Safari, Polo Sport, and Big Pony Men's brand names. Its restaurant collection includes The Polo Bar in New York City; RL Restaurant in Chicago; Ralph's in Paris; The Bar at Ralph Lauren located in Milan; Ralph's Bar located in Chengdu, China; and Ralph's Coffee concept. The company sells its products to department stores, specialty stores, and golf and pro shops, as well as directly to consumers through its retail stores, concession-based shop-within-shops, and its digital commerce sites. It directly operates retail stores and concession-based shop-within-shops; and operates Ralph Lauren stores and shops through licensing partners. Ralph Lauren Corporation was founded in 1967 and is based in New York, New York.

Purification Calculator

As a halal stock with 1.05% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is RALPH LAUREN CORP (RL) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), RALPH LAUREN CORP is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is RALPH LAUREN CORP's debt ratio?

RALPH LAUREN CORP's debt ratio is 13.0% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 37.9%.

Does RALPH LAUREN CORP require dividend purification?

Yes, RALPH LAUREN CORP has an impermissible income ratio of 1.05%, which means 1.05% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are RALPH LAUREN CORP's key financial metrics?

RALPH LAUREN CORP has a market capitalization of $19.9B, trailing P/E ratio of 22.3, and revenue of $7.1B. The company maintains a gross margin of 69.6% and a net margin of 11.7%. Return on equity stands at 33.8%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.