Should you consider ralph lauren corp Ralph lauren corporation(Nyse:Rl)Is a company that focuses on the design and distribution of luxury clothing and lifestyle products.The four main categories of ralph lauren products are apparel, home, accessories, and fragrances.The brand and company continues to be well renowned, and expansion throughout the world continues to be successful. The company has recently reported some positive news.To start, ralph lauren announced that its dividend payout will continue to be $.45 per share on a quarterly basis.The dividend was paid out to shareholders last month.The company currently yields around 1%. In more significant news, ralph lauren corporation recently announced some additional guidance for 2015, and stronger than expected earnings.The company announced income of $201 million, or $2.25 per diluted share, for its second quarter of 2014.Chairman and ceo ralph lauren was proud of the accomplishments he attributes the strong numbers to.Opening up polo for women, the first polo flagship store on fifth avenue, and the first dual gender ralph lauren flagship store in china all helped contribute to the strong performance.Lauren continues to believe that the international expansion and product innovation will continue to provide significant value to shareholders long term. With the holiday season upcoming, it is a safe assumption that ralph lauren will see a significant percentage of its annual sales in the coming months.In the retail business, a strong holiday season can make the difference between an average and an above average year.Fortunately, ralph lauren corporation has a number of cheap ralph Lauren polos catalysts besides the holiday season. Catalyststaking a look at the graph below, it is quite clear that the company hasA stronghistory of outperforming the s you can see that over the long term, the company has outperformed both its industry competitors and the market as a whole.A strong”Best of breed”Company can offer a sense of security, knowing that your holding has consistently outperformed over the long haul.Although past performance is no guarantee of future performance, it is a good measure for trying to decide if a company will outperform in the future. (Click to enlarge) Chart courtesy of morningstar China and international growth will likely be the largest catalyst in the company.China is expected to be one of the fastest growing international luxury markets going forward.As mentioned previously, ralph lauren expects to continue to open locations in china and also expand its e commerce operations, making it easier for international customers to purchase its products. Growth should continue within the united states as well.In addition to the holiday season usually being a strong performance period for the company, general improvements in the united states economy should help growth.As the united states economy continues to improve, luxury goods tend to benefit from the increase in disposable income.A strong economy tends to lead to higher incomes, which will also help luxury goods manufacturers like ralph lauren. Gross profit has continued to increase, reaching $1.1 billion for the second quarter.This represents an increase of 4%.Retail sales rose as well, rising 7% to $1.0 billion in the quarter.This was primarily due to a jump in international and global e commerce sales.Licensing revenues increased as well, signaling increased sales of ralph lauren products. Riskslike any individual stock, investing in ralph lauren does not come without risks.One of the current downsides to ralph lauren stock is its current valuation.The company currently trades at a price to earnings ratio of about 21, which is higher than the s average of 18.6.Ralph lauren has a5 year p/e ratio average of 19.9.The price to earnings ratio when compared to the company’s growth rate(Peg ratio)Shows a ratio of 1.8.Although this isn’t cause to necessarily sell the stock, it does mean that the company is currently trading at a multiple nearly double its growth rate.I typically look to invest in companies that have peg ratios of less than 1, but never higher than 1.5. One of the major downsides of investing in ralph lauren is the economic risk factors.The business could easily be negatively impacted by http://www.irmina.co.uk/ the financial instability of its customers.Uncertain economic conditions could impact customers’ buying patterns, but could also negatively impact suppliers’ lenders, among others.Other economic risks could influence the cost of goods sold and other operating costs for the company.Changes in social and political conditions could disrupt distribution.Significant fluctuations in the costs of raw materials could impact margins for the company, as could disruptions in transpiration and increase in delivery and fuel costs. It is also important to note the competitiveness of the industry within which ralph lauren operates.The luxury clothing business is dominated by a select few names, but there are constantly changing trends and styles that can change the business.Although ralph lauren has always had the”Classic”Defined luxury look, there is always the risk that new competitors can emerge and change conditions for the company. Conclusionin conclusion, there is no urgent indicator that argues to purchase ralph lauren stock immediately.Although the company is solid financially, has strong brand loyalty, and can be considered”Best of breed”Other factors make me hesitant to invest.The reasons behind holding off on investing currently include the valuation and the possibility of a pullback in the markets and in ralph lauren as a result.Although there is no way to know for sure if or when this pullback may occur, i am in no hurry to rush into this stock at current levels.Investors looking to buy into this company must be comfortable with the cyclical nature and the risks discussed above. This article is given for informational purposes only and is not to be construed as investment advice.Contact your investment professional and do your own due diligence before investing.