Investment Rating - The report maintains a low- to mid-single-digit revenue growth expectation for FY26 at constant currency [8][9]. Core Insights - The company expects overall revenue to grow at a mid-single-digit CAGR over the next three years, with Asia projected to grow at high single digits and EMEA at mid-single digits, while North America has a more cautious outlook [9]. - Management anticipates operating margin expansion of 100-150 basis points by FY28, with gross margin expected to maintain moderate annual growth driven by pricing optimization and supply chain efficiency [9][12]. - The company emphasizes a differentiated positioning strategy, maintaining a leading position in menswear and focusing on brand storytelling to counter price competition [10]. - Significant growth potential exists, with current market shares in high-end and luxury accessible markets being under 2%, indicating room for expansion [10]. - The company is leveraging AI and digitalization to enhance supply chain resilience and product appeal, with a focus on demand forecasting and predictive procurement [11]. - In response to inflation, the company plans to implement price increases and cost optimization strategies, aiming to save over $400 million [12]. Summary by Sections Revenue Growth and Financial Guidance - The company projects a mid-single-digit CAGR for overall revenue over the next three years, with specific growth rates for different regions [9]. - Management expects operating margin to expand by over 300 basis points since the last Investor Day, with further improvements anticipated [9]. Market Position and Competitive Strategy - The company has maintained its leadership in menswear and is focusing on brand differentiation amidst competitive pricing pressures [10]. - Current market shares in high-end segments indicate substantial growth opportunities [10]. Technological Advancements - The company is advancing its AI capabilities to improve supply chain management and product design, enhancing overall operational efficiency [11]. Cost Management and Pricing Strategy - The company plans to counter inflation through strategic price increases and cost-saving initiatives, with a target of saving over $400 million [12].

Group 1 - Ralph Lauren outlined new three-year targets for mid-single-digit sales growth and 100–150 basis points of operating margin expansion, with a 16% margin outlook not seen as a ceiling [1] - Growth is expected to be driven by strong performance in Asia and Europe, along with gains in women's apparel, handbags, and an expanded store footprint in APAC and EMEA [1] - Bank of America Securities noted that the updated plan reflects the company's previous successful strategy and highlights potential for gross margin improvement [2] Group 2 - Key drivers for growth include continued pricing power through higher average unit retail (AUR), easing input costs like cotton, and productivity gains in supply chain and inventory management [3] - A new $400 million cost savings program has been initiated, split between gross margin and SG&A, following a similar initiative from fiscal 2022 to 2025 [4] - Ralph Lauren's second-half guidance may be conservative, with stable consumer demand trends and opportunities in the women's category, particularly in handbags [5] Group 3 - In the first quarter of fiscal 2026, Ralph Lauren reported a 14% increase in revenue to $1.72 billion, exceeding the consensus estimate of $1.64 billion, and adjusted EPS of $3.77, surpassing forecasts of $3.43 [6] - For fiscal 2026, the company projects low- to mid-single-digit revenue growth at constant currency [6] - Analyst Christopher Nardone identified upside risks from faster sales recovery and cost savings, while downside risks include weakness in wholesale and global macro headwinds [7]

Ralph Lauren CEO Patrice Louvet told CNBC on Wednesday that the company did not know ahead of time that Taylor Swift and Travis Kelce would wear the brand for their engagement photos. "I think some people saw there, as they should, just the strength of the brand and the presence that we have around the world and the fact that we're part of culture," Louvet said. ...

Welcome back. Ralph Lauren reiterating its 2026 outlook and also introducing new three-year targets in an investor day in New York City yesterday. The company expecting revenue to increase at a compounded annual growth rate of mid-s single digits while operating margins set to expand by 100 to 150 basis points. Ralph Lauren also planning to return at least $2 billion to shareholders through dividends and share buybacks. The stocks up more than 30% this year, outpacing the broader retail space. Joining us no ...

Core Insights - Ralph Lauren is maintaining its 2026 outlook and introducing new three-year targets, expecting revenue to grow at a compounded annual growth rate in the mid-single digits and operating margins to expand by 100 to 150 basis points [1] - The company plans to return at least $2 billion to shareholders through dividends and share buybacks, with stock performance up over 30% this year, outperforming the broader retail sector [1] - Analysts expressed excitement about the company's performance and brand strength, despite some concerns about the outlook being conservative [1] Revenue and Market Position - Ralph Lauren operates in a $400 billion market but currently holds less than a 2% market share, indicating significant growth potential [1] - Women's category represents about one-third of the company's business, with over 50% of shoppers being women, highlighting a major growth opportunity [1] Brand Strategy and Cultural Engagement - The company is focusing on elevating its brand to a core luxury status while maintaining an inclusive luxury approach, appealing to a wide consumer base [1] - Recent cultural moments, such as celebrity engagements featuring Ralph Lauren products, have generated significant media coverage and brand visibility, although the immediate business impact is hard to quantify [1] Pricing and Value Proposition - Ralph Lauren's pricing strategy ranges from $15 to over $300,000, emphasizing value and ensuring consumers feel the products are worth the price [1] - The company believes that its distinct positioning and value proposition contribute to its current success, even as the luxury market faces challenges with high pricing [1]

Core Insights - Ralph Lauren Corporation (RL) is leveraging its unique brand portfolio, product innovations, and strategic execution of its Next Great Chapter plan to drive growth [1] Growth Strategy - The company is focused on three core growth drivers: elevating its lifestyle brand, driving core product growth, and expanding in key cities [2][10] - Ralph Lauren aims to enhance its global lifestyle brand positioning to offer premium quality, attract new consumers, and improve customer retention [2] Market Expansion - The company is advancing its iconic core products while targeting high-potential, under-penetrated markets that align with evolving consumer lifestyles [3] - Ralph Lauren plans to scale its digitally led ecosystem strategy in the top 30 cities globally and expand into 20 additional high-potential markets [3] Operational Capabilities - Key enablers of growth include engaged teams, agile operations, modern technology and analytics, resilient partners, and a strong balance sheet [4] Financial Outlook - Ralph Lauren has reiterated its fiscal 2026 outlook and introduced a three-year financial forecast, considering geopolitical and macroeconomic factors [5] - From fiscal 2025 to fiscal 2028, the company anticipates a mid-single-digit compound annual growth rate in revenues and an operating margin expansion of 100-150 basis points [6] Shareholder Returns - The company plans to return at least $2 billion to shareholders through dividends and share repurchases by fiscal 2028, subject to board approval and market conditions [7] - Ralph Lauren has increased its quarterly cash dividend by approximately 10% to 91.25 cents per share, reflecting an annual dividend of $3.65 per share [7] Long-term Vision - Management is confident that the Next Great Chapter plan will drive sustainable growth, expand market share, and strengthen Ralph Lauren's leadership in the luxury lifestyle sector [8]

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: 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 accelerat ...

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Group 1 - The event is Ralph Lauren's Investor Day 2025, hosted by the Head of Investor Relations, Corinna Van Der Ghinst [1] - The event includes a lineup of leaders who will be speaking, along with a lunch break for attendees to view product displays [2]

Core Insights - Ralph Lauren Corporation is leveraging its brand portfolio, product innovations, and strategic execution of its Next Great Chapter plan to drive growth [1][10] - The company is advancing its digital transformation through personalization and data-driven insights, resulting in a 13% increase in global direct-to-consumer comparable store sales in Q1 fiscal 2026 [2][10] Digital Transformation - Significant growth in digital channels is being experienced across key regions, with investments in personalization, mobile capabilities, and loyalty integration enhancing digital sales [3] - The focus on seamless omnichannel experiences is reinforcing Ralph Lauren's premium positioning in the market [2] Growth Strategy - The "Next Great Chapter: Accelerate Plan" emphasizes brand elevation, consumer centricity, and operational agility, aiming to expand into high-growth markets like Asia while strengthening core regions [4] - Retail and wholesale operations are core pillars of the business, contributing to a balanced revenue mix and sustainable growth [5] Financial Performance - Ralph Lauren's shares have surged 35% year to date, contrasting with a 29.4% decline in the industry [6] - The company trades at a forward price-to-earnings ratio of 20.54X, significantly higher than the industry average of 11.24X [7] Earnings Estimates - The Zacks Consensus Estimate indicates year-over-year earnings per share (EPS) growth of 19.8% for fiscal 2026 and 8.9% for fiscal 2027, with stable EPS estimates over the past 30 days [11] - Current estimates for fiscal 2026 and fiscal 2027 EPS are 14.77 and 16.08 respectively, reflecting a year-over-year growth estimate of 19.79% and 8.87% [12]