Business In News
At its Sept. 19 investor day, Ralph Lauren revealed that its growth plans through 2025, which will include opening 250 stores globally. As part of its strategy to become the leader of the luxury lifestyle category, the brand’s three-year outlook will rely on a digital-first strategy that is aligned with scaling across the top 30 global cities.
While 63% of the company’s business is derived through direct-to-consumer channels and 26% is credited to digital commerce, Ralph Lauren has “reduced brand dilution distribution” since 2018, according to Patrice Louvet, President and CEO of the company. The brand has exited two-thirds of its department store presence in the U.S. and reduced off-price exposure by 26%, but it has also opened 450 new global standalone stores and concessions.
“One of the most important transformations we have undertaken over the past four years is taking direct ownership of the consumer experience, offering an elevated Ralph Lauren experience wherever consumers meet our brand,” said Louvet during the investor day. “Our ecosystem model fully integrates the physical and the digital has a significant opportunity to scale across all three of our key regions: North America, Europe and Asia.”
To clarify its presence in high-end luxury, Ralph Lauren sold its low-end luxury brand Club Monaco to private equity firm Regent LP in May 2021.
“Since our last investor day in 2018, we have transformed our business — building a strong foundation with multiple engines of growth that are already showing momentum,” said Louvet. “Our clear and choiceful strategies are expected to deliver sustainable long-term growth and value creation — fueled by our strong balance sheet and operating discipline — as we reinforce our position as a leading luxury lifestyle company.”