RL vs. WSM

Last updated Jun 3, 2026

RL (Ralph Lauren Corporation) and WSM (Williams-Sonoma, Inc.) are both stocks. Both are in the Consumer Cyclical sector — RL in Apparel Manufacturing, WSM in Specialty Retail. Over the past 10 years, RL returned 16.55%/yr vs 25.50%/yr for WSM. At a 0.43 correlation, their price movements are largely independent.

Performance

RL vs. WSM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Ralph Lauren Corporation (RL) and Williams-Sonoma, Inc. (WSM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, RL achieves a 3.08% return, which is significantly lower than WSM's 14.95% return. Over the past 10 years, RL has underperformed WSM with an annualized return of 16.55%, while WSM has yielded a comparatively higher 25.50% annualized return.

RL

• 1D: -0.76%
• 1M: 0.36%
• YTD: 3.08%
• 6M: 2.68%
• 1Y: 33.28%
• 3Y*: 50.27%
• 5Y*: 27.20%
• 10Y*: 16.55%

WSM

• 1D: 0.84%
• 1M: 13.25%
• YTD: 14.95%
• 6M: 15.30%
• 1Y: 30.72%
• 3Y*: 53.52%
• 5Y*: 22.24%
• 10Y*: 25.50%

*Multi-year figures are annualized to reflect compound growth (CAGR)

RL vs. WSM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
RL Ralph Lauren Corporation	3.08%	55.03%	62.85%	39.82%	-8.41%	16.66%	-10.63%	16.07%	1.82%	17.53%
WSM Williams-Sonoma, Inc.	14.95%	-2.09%	86.56%	80.24%	-30.49%	68.60%	42.38%	50.07%	0.61%	10.20%

Correlation

The correlation between RL and WSM is 0.47, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.47
Correlation (3Y) Calculated over the trailing 3-year period	0.45
Correlation (5Y) Calculated over the trailing 5-year period	0.49
Correlation (10Y) Calculated over the trailing 10-year period	0.43
Correlation (All Time) Calculated using the full available price history since Jun 13, 1997	0.43

Fundamentals

Market Cap RL : $22.65B WSM : $24.44B
EPS RL : $15.08 WSM : $8.93
PE Ratio RL : 24.10 WSM : 22.83
PEG Ratio RL : 1.34 WSM : 4.62
PS Ratio RL : 2.80 WSM : 3.15
PB Ratio RL : 7.97 WSM : 13.07
Total Revenue (TTM) RL : $8.11B WSM : $7.88B
Gross Profit (TTM) RL : $5.67B WSM : $3.63B
EBITDA (TTM) RL : $1.18B WSM : $1.49B

Return for Risk

RL vs. WSM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

RL

RL Risk / Return Rank: 70
RL Sharpe Ratio Rank: 71
RL Sortino Ratio Rank: 67
RL Omega Ratio Rank: 64
RL Calmar Ratio Rank: 72
RL Martin Ratio Rank: 78

WSM

WSM Risk / Return Rank: 64
WSM Sharpe Ratio Rank: 69
WSM Sortino Ratio Rank: 65
WSM Omega Ratio Rank: 60
WSM Calmar Ratio Rank: 64
WSM Martin Ratio Rank: 64

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

RL vs. WSM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Ralph Lauren Corporation (RL) and Williams-Sonoma, Inc. (WSM). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	RL	WSM	Difference
Sharpe ratio Return per unit of total volatility	0.99	0.92	+0.07
Sortino ratio Return per unit of downside risk	1.64	1.52	+0.12
Omega ratio Gain probability vs. loss probability	1.19	1.17	+0.02
Calmar ratio Return relative to maximum drawdown	1.86	1.20	+0.66
Martin ratio Return relative to average drawdown	5.91	2.72	+3.18
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

RL vs. WSM - Sharpe Ratio Comparison

The current RL Sharpe Ratio is 0.99, which is comparable to the WSM Sharpe Ratio of 0.92. The chart below compares the historical Sharpe Ratios of RL and WSM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	RL	WSM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.99	0.92	+0.07
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.74	0.50	+0.24
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.43	0.58	-0.15
Sharpe Ratio (All Time) Calculated using the full available price history	0.25	0.34	-0.09

Drawdowns

RL vs. WSM - Drawdown Comparison

The maximum RL drawdown since its inception was -68.62%, smaller than the maximum WSM drawdown of -89.01%. Use the drawdown chart below to compare losses from any high point for RL and WSM.

Drawdown Indicators

	RL	WSM	Difference
Max Drawdown Largest peak-to-trough decline	-68.62%	-89.01%	+20.39%
Max Drawdown (1Y) Largest decline over 1 year	-17.67%	-23.27%	+5.60%
Max Drawdown (3Y) Largest decline over 3 years	-36.18%	-36.79%	+0.61%
Max Drawdown (5Y) Largest decline over 5 years	-36.51%	-51.92%	+15.41%
Max Drawdown (10Y) Largest decline over 10 years	-55.14%	-59.71%	+4.57%
Current Drawdown Current decline from peak	-6.68%	-7.26%	+0.58%
Average Drawdown Average peak-to-trough decline	-24.13%	-25.05%	+0.92%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.56%	10.22%	-4.66%

Volatility

RL vs. WSM - Volatility Comparison

Ralph Lauren Corporation (RL) has a higher volatility of 16.70% compared to Williams-Sonoma, Inc. (WSM) at 11.59%. This indicates that RL's price experiences larger fluctuations and is considered to be riskier than WSM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	RL	WSM	Difference
Volatility (1M) Calculated over the trailing 1-month period	16.70%	11.59%	+5.11%
Volatility (6M) Calculated over the trailing 6-month period	26.65%	24.54%	+2.11%
Volatility (1Y) Calculated over the trailing 1-year period	33.72%	33.73%	-0.01%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	36.96%	44.71%	-7.75%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	38.68%	44.23%	-5.55%

Dividends

RL vs. WSM - Dividend Comparison

RL's dividend yield for the trailing twelve months is around 1.00%, less than WSM's 1.34% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
RL Ralph Lauren Corporation	1.00%	1.01%	1.40%	2.08%	2.78%	1.74%	0.66%	2.29%	2.30%	1.93%	2.21%	1.79%
WSM Williams-Sonoma, Inc.	1.34%	1.43%	1.16%	1.72%	2.65%	1.43%	1.93%	2.55%	3.33%	2.98%	3.02%	2.36%

Financials

RL vs. WSM - Profitability Comparison

The chart below illustrates the profitability comparison between Ralph Lauren Corporation and Williams-Sonoma, Inc. over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

RL - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Ralph Lauren Corporation reported a gross profit of 1.38B and revenue of 1.98B. Therefore, the gross margin over that period was 69.7%.

WSM - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Williams-Sonoma, Inc. reported a gross profit of 793.43M and revenue of 1.81B. Therefore, the gross margin over that period was 44.0%.

RL - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Ralph Lauren Corporation reported an operating income of 156.80M and revenue of 1.98B, resulting in an operating margin of 7.9%.

WSM - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Williams-Sonoma, Inc. reported an operating income of 291.69M and revenue of 1.81B, resulting in an operating margin of 16.2%.

RL - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Ralph Lauren Corporation reported a net income of 151.60M and revenue of 1.98B, resulting in a net margin of 7.7%.

WSM - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Williams-Sonoma, Inc. reported a net income of 231.36M and revenue of 1.81B, resulting in a net margin of 12.8%.

Frequently Asked Questions

Can I hold both RL and WSM in my portfolio?

RL and WSM have a correlation of 0.47, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, RL or WSM?

RL has higher volatility (16.70%) compared to WSM (11.59%). In terms of maximum drawdown, RL dropped -68.62% vs WSM's -89.01%.

Which has better risk-adjusted returns?

RL currently has the higher Sharpe Ratio (0.99 vs 0.92), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.