Ralph Lauren looks to write “next great chapter” with new strategic growth plan
June 7, 2018
New York-based Ralph Lauren Corporation unveiled its strategic growth plan and long-term financial outlook on Thursday, with focus placed on attracting a new generation of customers, targeted regional expansion and digital growth.
The company revealed the plan, entitled “Writing Our Next Great Chapter”, at a meeting with investors and analysts, presenting the five strategic priorities that Ralph Lauren will be following in the coming years. As well as engaging new generations, leading with digital and targeting expansion by region and channel, the plan’s main strategic focus also covers energizing core products and underdeveloped categories, and driving growth through disciplined operations.
“We are confident that with our clear strategic plan in place, we can return Ralph Lauren to sustainable long-term growth and value creation,” said Ralph Lauren President and CEO Patrice Louvet in a release. “We are building on a solid foundation, starting with our iconic Ralph Lauren brand, our engaged global organization and a strong balance sheet. By putting the consumer back at the center of our business, elevating and energizing our brands and balancing productivity with growth, we’ll be well-positioned to deliver our next great chapter.”
“As we reflect on 50 years, I am so energized by the work we are doing to build the future for our Company and iconic brand,” added the brand’s Executive Chairman and Chief Creative Officer Ralph Lauren. “With a clear plan, Patrice’s leadership and our dedicated, passionate teams all over the world, we are reigniting the entrepreneurial spirit that is at the heart of our heritage and culture.”
The company also reported its long-term financial outlook for the next five years, revealing that it expects revenue to grow at a compounded annual growth rate of low to mid-single digits in constant currency from fiscal 2018 to fiscal 2023. The company also aims to see a return to revenue growth by 2020.
Operating margin is anticipated to expand to mid-teens by Fiscal 2023, in constant currency.
Ralph Lauren’s Board of Directors also approved the company’s 2019 fiscal restructuring plan, which is expected to result in $100-$150 million’s worth of charges but assure around $60-$80 million in gross annualized expense savings.
Ralph Lauren topped analysts’ expectations and reported earnings of $41.3 million in the fourth quarter ended March 23, 2018, with net sales falling 2.3% to $1.53 billion and same-store sales slipping 1%.
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