Ralph Lauren announces long-term financial outlook and growth strategy

Ralph Lauren Corporation has introduced its new strategic growth plan, "Next Great Chapter: Drive," along with a long-term financial outlook. According to a company announcement, the plan is designed to deliver sustainable growth and create value for the long term.

Three-year financial outlook includes revenue increasing at a compounded annual growth rate of mid-single digits and operating profit growth exceeding top-line growth by fiscal 2028 in constant currency.

Long-term financial outlook

The company is reaffirming its fiscal 2026 guidance and has provided a new three-year financial outlook from fiscal 2025 through fiscal 2028. Ralph Lauren expects revenue to increase at a compound annual growth rate in the mid-single digits in constant currency.

The company also projects its operating margin to expand by 100 to 150 basis points by fiscal 2028 in constant currency. This will be achieved through a combination of gross margin expansion and operating expense leverage, balanced with continued investments in the company’s strategic priorities.

Ralph Lauren expects capital expenditures to be approximately 4 percent to 5 percent of revenue annually through fiscal 2028. The company plans to continue returning excess free cash flow to shareholders, with a goal of returning at least 2 billion dollars on a cumulative basis through fiscal 2028 through regular quarterly cash dividends and share repurchases. In line with this, the company’s board of directors has already increased the regular quarterly cash dividend by approximately 10 percent to 0.9125 cents per share.

Strategic growth plan

The "Next Great Chapter: Drive" plan is based on three key strategic growth drivers:

Elevate and energise its lifestyle brand: The company will expand its brand positioning globally to attract and retain high-quality consumers, thereby increasing Customer Lifetime Value.

Drive the core and expand for more: Ralph Lauren will continue to grow its iconic core products while accelerating growth in high-potential categories that align with evolving consumer lifestyles.

Win in key cities: The company plans to scale its digitally-led ecosystem in its top 30 cities and begin developing its next 20 to sustain long-term growth.

According to CEO Patrice Louvet, this strategy is "grounded in meaningful progress" and will leverage the company's brand desirability, the power of its products, and its expanding presence in key global cities. Ralph Lauren, executive chairman and chief creative officer, added that he is proud of how the teams are carrying the company's vision into the future.