Ralph Lauren falls as Wall Street digests the luxury brand’s modest growth plans
The high-end retailer delivered a solid revenue outlook, but warned that tariffs and inflation could squeeze margins.
Ralph Lauren shares slipped 2.2% on Tuesday as the company laid out a fresh growth plan ahead of its investor day. The brand is now aiming for steady (but not splashy) gains of low to mid-single-digit revenue growth over the next three years and 100 to 150 basis points of margin expansion by fiscal 2028.
That sounds solid on paper, but the Street seemed unimpressed. For context: Ralph Lauren topped full-year sales estimates for 2025, notching 6.7% growth. The company also flagged that tariffs and inflation will weigh on margins and that shoppers are getting more price sensitive.
Management indicated bright spots in North America and Asia, where full-price sales are holding up, and stressed that its customer base remains resilient. The company also laid out plans to double down on its top 30 global cities with a more integrated retail and digital presence, while building out its next 20 markets to fuel long-term growth.
Ralph Lauren plans to hand at least $2 billion back to investors by 2028 through dividends and share repurchases.
Despite today’s dip, Ralph Lauren shares are still up 32% year to date.
