Ralph Lauren Unveils Three-Year Strategy: Consistent Focus with Modest Growth

Ralph Lauren outlines the roadmap for its development over the next three years. The U.S. company has chosen to maintain continuity with respect to the previous strategy, focusing on the same “three growth drivers “ and anticipating mid-single-digit growth in constant currency over the next three years.

While the group’s previous strategic plan was called Next Great Chapter: Accelerate, the one presented today maintains the same spirit, choosing as its name Next Great Chapter: Drive.

“The three-year financial outlook includes revenue growth at a mid-single-digit compound annual growth rate and operating profit growth that will exceed gross revenue growth by fiscal 2028 in constant currency,“ the company said.

Ralph Lauren will maintain a focus on three thrusts. The first, “elevate and energize the brand,“ increasing brand positioning and winning new consumers. The second is to “drive core and diversify,“ focusing on iconic products and underpenetrated categories. The third, “win in key cities”, focusing on a channel ecosystem in thirty priority cities and starting to develop the next twenty.

“For nearly sixty years, we have remained true to our vision of timeless style, authenticity, optimism and a life well-lived,“ said Ralph Lauren, executive chairman and chief creative officer.

Ralph Lauren is betting on a plan called ‘Next Great Chapter: Drive’, after completing ‘Next Great Chapter: Accelerate’

“Our Next Great Chapter: Drive plan builds on this significant progress, leveraging the distinctive positioning and appeal of our brand, the enduring power of our products across all lifestyle categories and our growing presence in key cities around the world,“ said Patrice Louvet, Ralph Lauren chairman and CEO.

The U.S. company ended fiscal 2024 with sales up nearly 7% and net income up nearly 15% after a strong fourth quarter. At the close of fiscal 2024 (ended last March), sales stood at $7.07 billion, an increase of 6.76% over the previous year.

The company’s operating income, meanwhile, rose by 23.23% to $932 million, while net income increased to $743 million, up 14.95% on 2023.

The company, which in 2024 closed the third and final year of its Next Great Chapter: Accelerate strategic plan, anticipated for 2025 a slowdown in the pace of growth for the year. Ralph Lauren anticipates low single-digit sales growth, “reflecting caution regarding the international environment.“ Margin will expand “modestly,“ including the impact of tariffs.