Ralph Lauren Shares Fall After Unveiling Growth Strategy

The announcement was made yesterday, a few hours before Investors Day in New York: the brand, founded in 1967 and famous for its Polo line, is expected to maintain a growth rate similar to that recorded over the last three years. Ralph Lauren executives presented details of their growth strategy, the “Next Great Chapter: Drive” plan, as well as their planned priority investments. The previous Investors Day was held in 2022.

Although these forecasts are broadly in line with financial analysts' estimates (Bloomberg), the market's response was mixed. Investors' reservations had an immediate effect on the share price, which fell 4% during trading. The forecasts for fiscal year 2026, already unveiled this summer, were also confirmed.

Ralph Lauren, which presented its Spring/Summer 2026 collection last week in New York, is now counting on the holiday season to revitalize its business. This is a particularly favorable period for brands positioned in the “accessible luxury” segment, which are more sensitive to seasonal peaks (Valentine's Day, Christmas, holidays) than “ultra-luxury” houses, whose sales are more consistent throughout the year.

The company also announced its intention to pay $2 billion in excess cash flow to its shareholders via dividends. At the same time, it specified that its capital expenditures are expected to represent 4-5% of annual revenue over the next three years.

American fashion brands have proven to be more vulnerable to geopolitical uncertainties since Donald Trump came to power. In early July, the US administration announced an agreement with Vietnam exempting American products from customs duties. However, Vietnamese exports are now subject to a 20% surcharge in the United States. This measure indirectly affects Ralph Lauren, which outsources part of its production to Asia.

To support its growth, the brand is focusing on several levers, detailed in its plan: the development of its iconic products, the expansion of its distribution network in major global cities, and the strengthening and innovation of its brand identity.