Ralph Lauren (RL) investor relations material

Strategic vision and brand positioning

• Emphasizes a legacy of leadership, inclusive luxury, and a unique lifestyle brand that resonates across generations and cultures, aiming to inspire a better life through authenticity and timeless style.

• Focuses on elevating the brand through storytelling, product innovation, and consistent execution, with a strong reputation for trust and loyalty among premium and luxury consumers.

• Inclusive luxury is defined as aspirational, accessible, and grounded in meaning rather than materialism, with 1 in 3 premium consumers shopping the brand and 79% considering it a luxury brand.

• Brand momentum is driven by cultural impact, sports partnerships, digital engagement, and high-value customer acquisition, especially among next-generation consumers.

• Brand remains larger than the business, with a $400B+ total market value and less than 2% market share, highlighting significant long-term growth potential.

Growth drivers and market opportunities

• Targets mid single digit revenue CAGR over the next three years, with Asia as the fastest-growing region and continued expansion in Europe and North America.

• Key growth levers include new customer acquisition, AUR growth, targeted unit expansion, and increased consumer lifetime value, especially in DTC and international markets.

• Women's, outerwear, and handbags are high-potential categories, with women's business reaching $2B and handbags growing over 40% since the last Investor Day.

• Digital commerce now represents 26% of revenue, outpacing brick-and-mortar growth, with a digital ecosystem powering global storefronts and ongoing investments in AI and analytics.

• Less than 2% market share in a $400B+ addressable market signals significant long-term growth potential.

Operational excellence and investment priorities

• $400M in gross savings achieved over the past three years, with another $400M+ targeted by FY28 through productivity, AI, and supply chain digitization.

• Investments prioritized in brand building, marketing (rising to 7.5–8.5% of sales), technology, and store expansion in key cities.

• Supply chain is diversified and digitized, with no country comprising more than 20% of production and increased agility to respond to disruptions.

• ERP and logistics transformation, vendor cost optimization, and AI-driven analytics are central to future-proofing operations, including a single global ERP and omni-channel inventory.

• Capital allocation focuses on reinvesting in the business, returning at least $2B to shareholders over three years, and maintaining leverage at 1–2x EBITDA.