The details of Ralph Lauren’s plan were shared with investors and analysts during a meeting held in New York City.
What is Ralph Lauren’s growth plan?
The growth strategy titled ‘Next Great Chapter: Drive’ revolves around three key drivers:
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1. The global expansion and elevation of the Ralph Lauren lifestyle brand to enhance quality, attract new customers, and improve customer retention, thereby increasing customer lifetime value.
2. A focus on driving sales of core products while also seeking accelerated growth in categories that have significant potential but are currently underdeveloped, particularly those that align with evolving consumer lifestyles.
3. A strategy to succeed in top cities by scaling a digitally led, cohesive ecosystem across the world’s 30 leading cities and initiating development in the next 20 top cities to ensure sustained long-term growth.
These strategic drivers are supported by Ralph Lauren’s strengthened capabilities over the past three years, including advanced technology, artificial intelligence (AI), analytics and a robust balance sheet.
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By GlobalDataRalph Lauren president and CEO Patrice Louvet explained: “Our Next Great Chapter: Drive plan is grounded in this meaningful progress — building on our brand’s distinctive positioning and desirability; the enduring power of our products across lifestyle categories; and our expanding presence in key cities around the world.
“Our execution is anchored in the strength of our teams, balance sheet and operational capabilities and underpinned by a culture of excellence and agility. We plan to drive our momentum forward, reinforcing our leadership as an inclusive luxury lifestyle brand to unlock sustainable, long-term growth and value creation.”
Ralph Lauren’s long-term financial guidance
Ralph Lauren has reiterated its fiscal 2026 guidance, which was shared in an earnings call on 7 August 2025 and it has introduced a three-year financial outlook.
From fiscal 2025 through to fiscal 2028, the company anticipates mid-single-digit revenue growth annually in constant currency.
Operating margins are projected to grow by nearly 100 to 150 basis points by fiscal 2028 in constant currency, powered by gross margin expansion and operating expense leverage. This is expected to occur alongside continued investments in strategic priorities.
Capital expenditures are projected to account for about 4% to 5% of annual revenue through fiscal 2028.
The company also plans to maintain its practice of returning excess free cash flow to shareholders over the next three years.
It intends to return at least $2bn cumulatively through fiscal 2028 via regular quarterly cash dividends and share repurchases, contingent upon board authorisation and prevailing business and market conditions.
Ralph Lauren’s board of directors has also approved a 10% increase in the regular quarterly cash dividend on common stock to $0.9125 per share at the start of fiscal 2026, amounting to an annual dividend of $3.65 per share.
