Ralph Lauren, the renowned US clothing retailer, has announced a three-year strategy to enhance the growth of its revenue.
Eyeing key cities and new customers, the retailer’s business strategy focuses on accelerating sales growth to a compound annual growth rate of mid- to high-single digits in next 3 years.
Notably, the new outlook, which excludes currency-related fluctuations, covers the fiscal years that run through the first 3 months of 2025.
While Ralph Lauren’s operating profit growth is expected to exceed the rate of top-line growth as a result of continued operating margin expansion, the operating margin is expected to grow by around 15 per cent by fiscal 2025 in constant currency.
This the retailer believes would be owing to a combination of modest gross margin expansion and operating expense leverage balanced with continued investments in its long-term strategic priorities.
Moving forward, Ralph Lauren said it plans to focus on expanding and elevating its lifestyle brand positioning globally to enhance customer acquisition and retention.
Besides, it intends to driving its core products along with its under-penetrated categories and scaling its digitally-led retail setup with a focus on its top 30 key cities globally.
