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Ralph Lauren Corporation RL is demonstrating strong brand and product momentum by executing its long-term strategy across geographies, channels and categories. By expanding brand assortments, introducing innovative products and optimizing distribution channels, the company is well-positioned for sustained growth.
RL on Track With “Next Great Chapter: Accelerate” Plan
Ralph Lauren continues to make strong progress on its strategic initiatives to enhance business performance. The company is on track to exceed its sales and profit goals under the "Next Great Chapter: Accelerate Plan." This plan aims to streamline operations, upgrade technology and enhance the customer experience.
As part of the plan, RL is focused on three strategic pillars: elevating and energizing its lifestyle brand, driving core offerings while expanding, and winning key cities with its consumer ecosystem. The company completed its brand reshuffling by transitioning Chaps into a licensed business. Ralph Lauren’s strategy emphasizes premium product offerings, data-driven promotions, efficient inventory management, and expansion across key locations and sales channels.
RL's DTC & Omnichannel Strategies Drive Growth
Ralph Lauren is advancing its digital and omnichannel expansion by investing in mobile, online shopping and fulfillment services. The company’s digital business, including its own websites, department store partnerships, online retailers and social commerce, continues to experience strong growth. RL added nearly two million new consumers to its direct-to-consumer (DTC) business in the third quarter of fiscal 2025, marking steady year-over-year growth. This growth was largely driven by younger, high-value customers who are less price-sensitive, reinforcing the brand’s appeal to the next generation. Social media engagement continues to grow, with an expanding follower base across platforms like TikTok, Threads, Instagram, Line and Douyin.
In the fiscal third quarter, Ralph Lauren achieved significant digital sales growth across key regions, with notable increases in Europe and Asia. The company is experiencing strong DTC comparable store sales growth while expanding its connected ecosystems in major markets. Strong brand positioning and sustained demand for core and seasonal products have driven higher full-price sales and increased average unit retail prices, surpassing expectations.
How is RL Positioned for 2025?
Ralph Lauren’s stock momentum and stronger North American wholesale performance provide a solid foundation for resilience in a competitive landscape. For fiscal 2025, RL anticipates constant-currency revenue growth of 6-7% year over year, including 100-150 bps of adverse currency impacts. Management now expects the operating margin to increase 120-160 bps in constant currency, driven by a gross margin expansion of 130-170 bps.
For the fiscal fourth quarter, management anticipates revenues to increase 6-7% on a constant-currency basis. The operating margin is expected to expand around 120-140 bps in constant currency, driven by gross margin expansion of 80-120 bps and slight operating expense leverage. Wholesale is projected to continue its positive trajectory, with North America sell-in aligning more closely with sell-out, and Europe wholesale receipts shifting to the second half of fiscal 2025.