Ralph Lauren’s ‘next great chapter’ includes 250 new stores
Ralph Lauren Corp. has unveiled its new strategic plan, which includes financial targets for the next three years.
Celebrating its 25th year as a public company, the luxury lifestyle brand laid out the plan, dubbed Next Great Chapter: Accelerate,” at its Investor Day in New York City. During the next three years, the company Ralph Lauren expects revenue to show a compounded annual growth rate in the mid- to high-single digits, with operating profit growth exceeding the top-line expansion in constant currency by 2025. The company also plans to return $2 billion to investors in the form of dividends and share repurchases.
"Since our last investor day in 2018, we have transformed our business – building a strong foundation with multiple engines of growth that are already showing momentum," stated Patrice Louvet, president and CEO. "Our Next Great Chapter: Accelerate plan is grounded in this meaningful progress, building on our elevated brand positioning and desirability; our distinctive, timeless products and experiences across multiple categories; and our expanding reach in key cities around the world."
As part of its strategic plan, the company said intends to execute on the following three strategic growth drivers:
- Expand and elevate its brand positioning globally to deliver high quality, new consumer acquisition and retention to increase customer lifetime value;
- Continue driving its stable of iconic core products along with its next cohort of high-potential, under-penetrated categories focused on consumers’ evolving lifestyles and approach to wardrobing; and
- Scale its digitally-led, “cohesive ecosystem strategy” across our top 30 cities around the world.
At its Investor Day meeting, Bob Ranftl, regional CEO of North America, said the company is looking to open about 250 stores during the next three years as it continues to emphasize its direct-to-consumer business. Of the 30 markets it has marked for expansion, 14 are in North America.
Ranftl told investors that Ralph Lauren is still “significantly underpenetrated in many cities in North America.”
“North America will be a significant contributor to overall company growth,” he said.
Ralph Lauren’s net revenue increased by 8% to $1.5 billion in its most recent quarter. North America revenue rose 6% to $701 million. In retail, comparable store sales in North America were up 5%, with a 5% increase in brick-and-mortar stores and a 2% increase in digital commerce. North America wholesale revenue increased 5%.
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