Ralph Lauren's Digital and Other Growth Plans Appear Encouraging

Core Viewpoint - Ralph Lauren Corporation (RL) is positioned well due to its digital success and robust strategies, particularly its "Next Great Chapter" plan [1][6] Group 1: Digital Strategy and Growth - Ralph Lauren is expanding its digital reach and omnichannel capabilities through investments in mobile, fulfillment, and connected retail [2] - The company added 1.3 million new consumers via its direct-to-consumer (DTC) businesses in the most recent quarter, with social media followers growing to over 60 million [3] - Global DTC comparable store sales increased by 5% year over year, supported by brand elevation and positive retail comps across all regions [4] Group 2: Strategic Focus - The company is focused on product elevation, personalized promotions, disciplined inventory management, and a favorable channel and geographic mix [5] - Ralph Lauren aims to exceed its top and bottom-line targets under the "Next Great Chapter" plan, which includes a simplified global structure and improved technological capabilities [6] Group 3: Financial Performance and Outlook - For fiscal 2025, Ralph Lauren anticipates low-single-digit revenue growth, translating to a 2-3% rise in revenues, with an expected operating margin increase of 100-120 basis points [9] - The gross margin is projected to increase by 50-100 basis points at constant currency [9] - Despite challenges in the North America wholesale segment, management expects decreases to moderate in the remainder of fiscal 2025 [8]