Dick's Sporting Goods vs Ralph Lauren

This page compares Dick's Sporting Goods Inc. and Ralph Lauren Corp., examining business models, financial performance, and market context in a neutral, accessible way. It outlines how each company operates, generates revenue, and positions itself within its markets, without offering recommendations. Educational content, not financial advice.

This page compares Dick's Sporting Goods Inc. and Ralph Lauren Corp., examining business models, financial performance, and market context in a neutral, accessible way. It outlines how each company op...

Comparison Snapshot

Key Financial Metrics

DKS

Metric

RL

$18.28B

Market Cap

$21.85B

17.45%

Potential Profit

6.32%

Buy

Analyst Rating

Buy

Why It's Moving

Ralph Lauren's Q2 Earnings Crush Expectations, Fueling Investor Optimism Amid Luxury Surge.

EPS soared 49% year-over-year to $3.79 from $2.54, highlighting stronger-than-expected profitability and operational efficiency.
Q2 results beat estimates by nearly 10%, boosting confidence in Ralph Lauren's ability to navigate retail headwinds.
Stock up over 64% in the past year, reflecting broader luxury sector strength amid rising consumer spending on high-end fashion.

Sentiment:

🐃Bullish

Ralph Lauren's Q2 Earnings Crush Expectations, Fueling Investor Optimism Amid Luxury Surge.

EPS soared 49% year-over-year to $3.79 from $2.54, highlighting stronger-than-expected profitability and operational efficiency.
Q2 results beat estimates by nearly 10%, boosting confidence in Ralph Lauren's ability to navigate retail headwinds.
Stock up over 64% in the past year, reflecting broader luxury sector strength amid rising consumer spending on high-end fashion.

Sentiment:

🐃Bullish

Investment Analysis

Dick's Sporting Goods

DKS

Pros

Raised full-year 2025 comparable sales growth guidance to 2%-3.5% and EPS to $13.90-$14.50, reflecting strong operational performance.
Strategic $2.3 billion acquisition of Foot Locker to close in September 2025 enhances market share and bargaining power with leading athletic brands.
Solid gross profit expansion to 37.06% of net sales with investments in digital infrastructure and store innovation to support long-term growth.

Considerations

Non-GAAP SG&A expenses increased nearly 10%, leading to margin deleverage due to substantial investment in growth initiatives.
Stock price underperformance compared to S&P 500, rising 17.8% over the past year versus 27.9% for the index.
High valuation multiples such as a P/E ratio of 15.0x and price/book of 5.7x potentially indicate limited near-term valuation upside.

Ralph Lauren

RL

Pros

Ralph Lauren has a strong heritage brand with global recognition and diversified product lines in luxury apparel and accessories.
Strategic initiatives focused on digital channel expansion and direct-to-consumer growth improving profitability and market penetration.
Efforts to optimize supply chain and product mix expected to boost margins and operational efficiency over the medium term.

Considerations

Luxury retail sector exposure makes Ralph Lauren vulnerable to macroeconomic downturns and consumer discretionary spending volatility.
Ongoing global supply chain disruptions and inflationary pressures could increase costs and compress margins.
Facing strong competition from both traditional luxury brands and emerging digital-native fashion companies intensifying market pressures.

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