Ralph Lauren Charts Growth Plan With US$ 2 Bn Shareholder Returns

Ralph Lauren Corporation has outlined its updated strategic roadmap, Next Great Chapter: Drive, aimed at delivering sustainable growth and long-term value creation. The plan was presented to investors and analysts at an Investor Day event in New York City.

The luxury lifestyle company said it expects revenue to grow at a mid-single-digit compound annual growth rate (CAGR) through fiscal 2028, with operating profit growth outpacing topline expansion. Operating margins are projected to improve by 100–150 basis points in constant currency by FY28, supported by gross margin expansion and operating expense leverage.

At the same time, Ralph Lauren committed to returning at least $2 billion in cumulative excess free cash flow to shareholders via dividends and share buybacks through FY28. The board has already raised the quarterly dividend by 10% to $0.9125 per share, translating into an annual payout of $3.65. The company also has a $1.6 billion share repurchase authorization in place.

Chief Executive Officer Patrice Louvet said the updated plan builds on progress achieved since the company’s previous investor day in 2022. “Our Next Great Chapter: Drive plan is grounded in meaningful progress — building on our brand’s distinctive positioning, the enduring power of our products, and our expanding presence in key global cities,” Louvet noted.

The strategy focuses on three growth drivers:

• Elevating and energizing the lifestyle brand through premium positioning and stronger consumer engagement.
• Driving the core and expanding for more by reinforcing Ralph Lauren’s iconic products while accelerating growth in high-potential categories.
• Winning in key cities with a digitally-led consumer ecosystem across its top 30 global markets, while preparing the next 20.

Supporting these drivers are enhanced capabilities in operations, technology, artificial intelligence, analytics, sustainability and a solid balance sheet.

Capital expenditure is expected to remain at 4–5% of revenue annually through FY28 as the company invests in strategic priorities.

Ralph Lauren executives also marked the occasion by ringing the Opening Bell at the New York Stock Exchange.

The outlook assumes stable macroeconomic conditions while factoring in potential headwinds such as inflation, tariffs, supply chain challenges, and currency volatility. Guidance excludes restructuring or other special charges.

Executive Chairman and Chief Creative Officer Ralph Lauren said: “For nearly 60 years, we have stayed true to our vision of timeless style, authenticity and optimism. As we carry this vision into the future, I am proud of how our teams are inspiring more people worldwide to step into their dreams.”