Ralph Lauren Unveils Three-Year Outlook – Here Are The Key Points

Ralph Lauren expects operating margin to expand by approximately 100 to 150 basis points by fiscal 2028, while capital expenditures are expected to represent about 4% to 5% of revenue annually over the next three years.

Ralph Lauren (RL) said on Tuesday that it expects revenue to increase in the mid-single-digit percentage range annually and operating profit growth to exceed top-line growth by fiscal 2028.

The luxury apparel maker, which provided its three-year outlook, stated that operating margin is expected to expand about 100 to 150 basis points by fiscal 2028, while capital expenditures are expected to represent approximately 4% to 5% of revenue annually in these three years.

Shares of Ralph Lauren were down nearly 3% in early trading. Retail sentiment on the stock remained in the ‘bearish’ territory, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.

The company expects to continue returning excess free cash flow to shareholders over the next three years, with plans to return at least $2 billion on a cumulative basis through fiscal 2028 via regular quarterly cash dividends and share repurchases.

Ralph Lauren reiterated its fiscal 2026 guidance, stating that revenue is expected to increase by low to mid-single digits, as announced in early August. The company has indicated that, given the tariffs, it has a cautious outlook for the second half of the year.

A bullish user on Stocktwits noted that this news “presents a positive picture of a company with a strong track record” and “a clear vision for future growth.”

Shares of Ralph Lauren have gained over 33% this year and jumped 67% in the last 12 months.

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