Three years ago, Ralph Lauren laid out a plan to grow revenue — and delivered. This year, it appears poised to do it again.
Between 2018 and 2019, Ralph Lauren (RL 2.04%) reduced its physical store footprint by 25%, shutting down over 1,000 locations. It was an aggressive plan to reduce the brand’s overexposure, but it successfully recentered around its upscale positioning. It later expanded its cultural relevance through high-profile visibility tied to public figures popular with younger demographics, such as Taylor Swift and Selena Gomez.
In September 2022, the company unveiled its three-year strategic growth plan, “Next Great Chapter: Accelerate,” targeting a mid- to high-single-digit compound annual growth rate (CAGR) through 2025. Ralph Lauren delivered on that goal, posting an approximate 5% revenue CAGR across the 2023, 2024, and 2025 fiscal years. In September 2025, the brand rolled out its next three-year growth plan, “Next Great Chapter: Drive,” aiming to drive growth to even higher levels.
Image source: Getty Images.
Ralph Lauren’s aggressive shift will push its stock even higher
The luxury apparel company’s stock surged 242% between 2023 and 2025, including a 60% gain in 2025, as of Dec. 12, 2025. Earlier this year, CEO Patrice Louvet credited the renewed focus on luxury branding as the driving force behind the success: “Ralph founded this company as a luxury company. What we needed to do was go back to this mindset.”
Today’s Change
(-2.04%) $-7.53
Current Price
$362.53
Key Data Points
Market Cap
$22B
Day’s Range
$360.34 – $371.61
52wk Range
$176.61 – $380.00
Volume
1.6M
Avg Vol
636K
Gross Margin
66.23%
Dividend Yield
0.96%
With its Drive plan, Ralph Lauren plans to deliver another mid-to high-single-digit CAGR through 2028. Over the same period, it also plans to return at least $2 billion in excess free cash flow to shareholders through dividends and share repurchases. On Dec. 12, 2025, the luxury brand declared a regular quarterly dividend of $0.9125 per share, with the next quarterly payment occurring on Jan. 9, 2026.
After just closing at an all-time high of $371.70 on Dec. 15, Ralph Lauren shows no signs of slowing down. While it is one of the most expensive apparel stocks in the U.S. market, the luxury brand’s aggressive three-year growth plan, which includes a commitment to returning capital to shareholders, still makes it a great buy over the next three years.
