US' Ralph Lauren reaffirms FY26 guidance, sets 3-year growth outlook

The operating margin is expected to expand approximately 100 to 150 basis points (bps) by FY28 in constant currency, driven by a combination of gross margin expansion and operating expense leverage balanced with continued investments in the company’s long-term strategic priorities, Ralph Lauren said in a press release.

In addition, capital expenditures are expected to represent approximately 4 to 5 per cent of revenue annually through FY28. 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 FY28 through its regular quarterly cash dividends and share repurchases.

The company’s board of directors increased the regular quarterly cash dividend on the company's common stock by approximately 10 per cent to $0.9125 per share at the beginning of FY26, representing an annual dividend of $3.65 per share.

The company’s current share repurchase authorisation enables it to repurchase up to $1.6 billion in shares of class A common stock, subject to overall business and market conditions.

The company's outlook is based on its best assessment of the current geopolitical and macroeconomic environment, including inflationary pressures, tariffs and other consumer spending-related headwinds, global supply chain disruptions and foreign currency volatility, among other factors, added the release.

It further stated that FY26 and long-range outlook exclude any potential restructuring-related and other net charges that may be incurred in future periods.

“For nearly 60 years, we have stayed true to our vision of timeless style, authenticity, optimism and a life well-lived,” said Ralph Lauren, executive chairman and chief creative officer at the company. “As our teams carry this vision into the future, I am so proud of how they are working together with passion and commitment to who we are as we inspire more and more people all over the world to step into their dreams.”

“Since our last investor day in 2022, we delivered on our long-term targets while strengthening our business and fundamentally elevating our brand. We have established multiple, diversified engines of growth that continue to gain momentum, rooted in the timeless values and authentic style that make Ralph Lauren unique,” said Patrice Louvet, president and chief executive officer (CEO) at the company.

“Our execution is anchored in the strength of our teams, balance sheet and operational capabilities and underpinned by a culture of excellence and agility. We plan to drive our momentum forward, reinforcing our leadership as an inclusive luxury lifestyle brand to unlock sustainable, long-term growth and value creation,” Louvet continued.

ALCHEMPro News Desk (SG)