Between FY2016 and FY2022, American fashion and luxury group Ralph Lauren Corporation experienced a seven-year stagnation. Annual revenue declined from a historical peak of USD 7.6 billion in FY2015 to USD 6.2 billion in FY2022 (dropping sharply to USD 4.4 billion in FY2021 due to the pandemic before rebounding the following year to pre-pandemic levels).
(Note: Ralph Lauren’s fiscal year ends in March of the following calendar year.)
At its Investor Day on September 19, 2022, Ralph Lauren announced a strategic growth plan titled “Next Great Chapter: Accelerate”. Over the next three years, the company delivered steady performance improvements, with revenue by FY2025 nearing its historical peak. Increasingly optimistic capital market expectations also drove the company’s share price to surge more than 200% over the same period, reaching an all-time high.
On September 16, 2025, at its most recent Investor Day, Ralph Lauren unveiled a new strategic growth plan: “Next Great Chapter: Drive”.
Patrice Louvet, President and CEO of Ralph Lauren, stated:
“Since our last Investor Day in 2022, we have delivered on our long-term goals, while strengthening the business and fundamentally elevating our brand. Grounded in Ralph Lauren’s unique and timeless values and authentic style, we have built a diversified set of growth engines, and momentum is building.”
The new strategic plan outlines three key drivers of Ralph Lauren’s growth:
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Elevate and energize our lifestyle brand
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Drive core business and expand into new categories
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Win key city markets through our consumer ecosystem
The company emphasized that these three drivers are powered by core capabilities that have been enhanced over the past three years:
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A committed and high-performing team
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Industry-leading operations
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Outstanding technology
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Resilient partnerships
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A strong balance sheet
Achievements from FY2022 to FY2025 (at constant currency):
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Revenue grew at a high single-digit compound annual growth rate (CAGR)
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Adjusted operating margin expanded by 340 basis points
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Adjusted earnings per share grew at a CAGR of 15–17%
New financial targets for FY2026–FY2028 (ending March 2028):
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Mid-single-digit revenue CAGR
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Operating margin expansion of approximately 100–150 basis points at constant currency
Ralph Lauren noted, “Relative to the scale of our business, the Ralph Lauren brand’s reputation is far greater.” The company currently generates around USD 7.0 billion in annual sales, while the total addressable market exceeds USD 400 billion. With a market share of less than 2%, the company sees vast growth potential.
Market Outlook
By region, Ralph Lauren expects Asia and Europe to be the primary drivers of revenue growth over the next three years. The Asia-Pacific region is projected to grow at a high single-digit CAGR, while EMEA is expected to grow at a mid-single-digit rate, and North America at a low single-digit rate.
With the highlight on China, Shin Hwee Chua, CEO of the Asia-Pacific region, highlighted at the event:
“Success in the Chinese market has been especially outstanding.”
Since 2022, revenue from the Chinese market has grown at a CAGR of 24%, with operating margins increasing by 15 percentage points. Over 100 new stores have opened in this period.
In Q1 of FY2026 (ended June 28), Ralph Lauren achieved over 30% year-over-year growth in China, marking 20 consecutive quarters of positive growth.
Patrice Louvet remarked:
“This success is no coincidence. It is a direct result of our three strategic growth drivers being successfully implemented in the Chinese market.”
Luxe.CO Intelligence has published an exclusive research report titled: How an Iconic Brand Finds New Growth – A Deep Dive into Ralph Lauren’s Three-Year Acceleration Strategy.
Through a detailed examination of Ralph Lauren’s initiatives over the past three years across teams, branding, products, and channels, the report uncovers how this nearly 60-year-old American heritage brand reignited growth through effective strategies and execution.
In the report, Luxe.CO Intelligence analyzes Ralph Lauren’s “Accelerate” strategy from six key angles:
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Favorable external market environment
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Executive leadership restructuring
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Elevating and energizing brand vitality
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Focusing on core business and expanding into new categories
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Winning key city markets via the consumer ecosystem
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Renewed focus on the Chinese market
About Luxe.CO Intelligence
Luxe.CO Intelligence is a one-of-a-kind research and consulting platform for the global fashion industry. Rooted in China and offering a global perspective, it delivers forward-looking consumer insights, industry research, and strategic advisory services.
Leveraging its robust industry network, data intelligence, and knowledge system, Luxe.CO Intelligence focuses on luxury, fashion, beauty, and lifestyle industries. Through structured business information, in-depth sector studies, efficient primary research, rich case studies, and strategic foresight, it provides industry leaders with the best decision-making references.
Explore all reports published by Luxe.CO Intelligence: https://luxe.co/page/hlzk
