Ralph Lauren shares slip after unveiling long-term financial outlook

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Investing.com -- Ralph Lauren shares fell more than 2% on Tuesday after the fashion house outlined its “Next Great Chapter: Drive” strategy and long-term financial outlook at an investor day in New York. ``

The company forecast revenue growth at a mid-single-digit compound annual rate through fiscal 2028, supported by operating profit growth expected to outpace top-line gains. `` ``

Ralph Lauren also projected operating margin expansion of 100 to 150 basis points by 2028 in constant currency, driven by gross margin improvement and operating expense leverage. ``

Chief Executive Officer Patrice Louvet said the plan “is grounded in meaningful progress — building on our brand’s distinctive positioning and desirability; the enduring power of our products across lifestyle categories; and our expanding presence in key cities around the world.” ``

Ralph Lauren reaffirmed its fiscal 2026 guidance, first issued in August, and said capital expenditures are expected to remain at about 4% to 5% of revenue annually through fiscal 2028. ``

The company also committed to returning at least $2 billion in excess free cash flow to shareholders over the next three years through dividends and share repurchases. `` ``

Its board earlier this year approved a 10% dividend increase to $0.9125 per share, or $3.65 annually. ``

Louvet added that the strategy’s execution is “anchored in the strength of our teams, balance sheet and operational capabilities and underpinned by a culture of excellence and agility,” as the company aims to reinforce its position as a global luxury lifestyle brand. ``

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