Ralph Lauren Corporation, a global enabler in the design, marketing, and distribution of luxury lifestyle products, is presenting its Next Great Chapter: Drive strategic growth plan to deliver sustainable long-term growth and value creation, and to discuss the Company’s long-term financial outlook.
“For nearly 60 years, we have stayed true to our vision of timeless style, authenticity, optimism and a life well-lived,” said Ralph Lauren, Executive Chairman and Chief Creative Officer. “As our teams carry this vision into the future, I am so proud of how they are working together with passion and commitment to who we are as we inspire more and more people all over the world to step into their dreams.”
“Since our last investor day in 2022, we delivered on our long-term targets while strengthening our business and fundamentally elevating our brand. We have established multiple, diversified engines of growth that continue to gain momentum, rooted in the timeless values and authentic style that make Ralph Lauren unique,” said Patrice Louvet, President and Chief Executive Officer. “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.”
Mr. Louvet continued, “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.”
As part of its strategic plan, the Company intends to continue executing on its three strategic growth drivers:
Elevate and energize our lifestyle brand – expand and elevate our lifestyle brand positioning globally to deliver high quality, new consumer acquisition and retention to increase Customer Lifetime Value;
Drive the core and expand for more – continue driving our stable of iconic core products along with accelerated growth in our high-potential, under-penetrated categories focused on consumers’ evolving lifestyles; and
Win in key cities with our consumer ecosystem – scale our digitally-led, cohesive ecosystem strategy across our top 30 cities around the world and begin developing our next 20 top cities to sustain long-term growth.
These strategic growth drivers are underpinned and enabled by the Company’s core capabilities, which have been strengthened and enhanced in the last three years. These key enablers include: our engaged and empowered teams; industry-leading, agile operations; advanced technology, artificial intelligence and analytics; resilient partners, communities and materials; and a powerful balance sheet.
In addition, Ralph Lauren executives will ring The Opening Bell® of the New York Stock Exchange today prior to the investor presentations.
Long-Term Financial Outlook
The Company is reiterating its Fiscal 2026 guidance that was recently provided on its earnings call on August 7th, 2025 and introducing its three-year financial outlook.
Over the next three years, from a base of Fiscal 2025 through Fiscal 2028, the Company expects revenue to increase at a compound annual growth rate of mid-single digits in constant currency. Operating margin is expected to expand approximately 100 to 150 basis points by Fiscal 2028 in constant currency, driven by a combination of gross margin expansion and operating expense leverage balanced with continued investments in the Company’s long-term strategic priorities.
In addition, capital expenditures are expected to represent approximately 4% to 5% of revenue annually through Fiscal 2028.
The Company expects to continue returning excess free cash flow to shareholders over the next three years, with plans to return at least $2 billion on a cumulative basis through Fiscal 2028 through its regular quarterly cash dividends and share repurchases, subject to the authorization of its Board of Directors and overall business and market conditions.
The Company’s Board of Directors increased the regular quarterly cash dividend on the Company’s Common Stock by approximately 10% to $0.9125 per share at the beginning of Fiscal 2026, representing an annual dividend of $3.65 per share.
The Company’s current share repurchase authorization enables it to repurchase up to $1.6 billion in shares of Class A Common Stock, subject to overall business and market conditions.