Ralph Lauren Corporation

Sector: Apparel and footwear Countries of operation: Canada, China, Japan, South Korea, the UK, the US and 25 other countries Key product categories: Lifestyle apparel, footwear and related products for men, women and children Annual Metrics [caption id="attachment_148820" align="aligncenter" width="700"] Fiscal year ends on March 31 of the same calendar year[/caption]   Summary Founded in 1967 and headquartered in New York City, Ralph Lauren Corporation designs, distributes and markets premium lifestyle products in the apparel, footwear, accessories, home furnishings, fragrances and hospitality categories. As of March 31, 2022, the company operates 504 retail stores and 684 concession-based shop-in-shop locations. It also operates e-commerce stores and sells via third-party digital partners. As of March 2022, Ralph Lauren merchandise is available through wholesale distribution channels at around 9,000 locations worldwide, the majority in specialty stores. On May 13, 2021, the company announced that it has agreed to sell Club Monaco to private equity firm Regent for an undisclosed sum. Company Analysis Coresight Research insight: Ralph Lauren has faced significant challenges amid the pandemic. The crisis has severely impacted the sales of its brick-and-mortar store fleet, especially in North America. However, the company responded with a series of new initiatives, including efforts to accelerate its digital growth—such as launching virtual store experiences, allowing private shopping appointments with in-store brand specialists and enabling customers to scan the Ralph Lauren logo using Snapchat to access exclusive offers. The company also adjusted its product mix in response to the pandemic—following the consumer casualization trend, it has included more casual categories, as well as reduced its penetration into off-price retail. We believe the company’s adjusted strategy could help it attract more new consumers and strengthen brand awareness.

Tailwinds	Headwinds
A well-diversified, global, multichannel distribution network Increased strategic targeted consumer messaging The consumer pivot toward casual apparel	Macro-related headwinds, from supply chain to cost inflation headwinds Pressure from peer competitors such as Tommy Hilfiger

  Strategy On its February 3, 2022, third-quarter of fiscal year 2022 earnings call, Ralph Lauren reiterated its long-term strategic plan, which focuses on the following five key areas: 1. Energize core products and accelerate underdeveloped categories

• Expand its offerings in product categories currently resonating with consumers, such as casualwear, and reduce those that are not, such as formal and tailored workwear.

2. Drive targeted expansion

• Continue to expand its business internationally. As of March, 2022, international licensing partners operate 148 Ralph Lauren stores and shops
• Continue to increase personalization initiatives, including high-reach paid social media and targeted e-mail campaigns using predictive artificial intelligence (AI).

3. Win over a new generation

• Connect with Gen Z audiences. Enable influencer and celebrity partnerships and take advantage of new social media opportunities.
• Fuel strong consumer engagement through diverse content and accelerate marketing investments—driving growth in global brand consideration and purchase intent.
• Continue to expand into the metaverse.

4. Lead with digital

• Offer connected retailing options. Enable consumers to interact online with Ralph Lauren in new and more personalized ways and offer an expanded range of online services, including appointment booking, buy online and pick up in store (BOPIS), curbside pickup, mobile checkout and contactless payment.
• Take advantage of new digital opportunities. In November 2020, Ralph Lauren launched a virtual store experience at its Beverly Hills flagship store, offering a mix of multimedia and augmented reality capabilities.
• Respond to the pandemic effectively using digital means. During the crisis, the company implemented 3D digital product creation in virtual fittings and rolled out digital showrooms.

5. Operate with discipline to fuel growth

• Simplify the company’s organizational structure, enable teams to move with greater agility and focus core strategic goals, such as its digital transformation. The company completed the transition of Chaps to a licensed business in the second quarter of fiscal 2022, enabling it to focus on core brands.
• Strive for more sustainability, including launching Clarus, a recycled cotton synthetic developed by the company’s partner, Natural Fiber Welding.

Revenue Breakdown (FY22) [caption id="attachment_148821" align="aligncenter" width="420"] Note: The numbers do not add up to 100 due to rounding[/caption]   Company Developments

Date	Development
June 24, 2022	Ralph Lauren announces that Deb Cupp, President of Microsoft North America, has been nominated as a Director for election at the company’s 2022 Annual Meeting of Stockholders, to be held on August 4, 2022.
June 24, 2022	Ralph Lauren publishes its 2022 Global Citizenship and Sustainability Report, outlining the company’s progress across its environmental, social and governance (ESG) commitments.
May 11, 2022	Ralph Lauren provide $25 million in new grant funding to expand or establish five Ralph Lauren cancer centers, aimed at reducing disparities in cancer care and access across underserved communities in the US.
April 6, 2022	Ralph Lauren launches its first unisex fragrance, POLO EARTH. It describes the fragrance as a consciously designed vegan scent featuring sustainably sourced ingredients and recycled packaging.
March 22, 2022	Ralph Lauren debuts its fall/winter 2022 collection at New York’s Museum of Modern Art.
January 31, 2022	Ralph Lauren announces a strategic limited partnership with Franklin Venture Partners, a specialized investment team within Franklin Templeton, focused on mid- and late-stage private companies.
January 20, 2022	Ralph Lauren  unveils a new apparel and textile innovation, Intelligent Insulation—a temperature responsive fabric that automatically adapts to cooler temperatures—which will be used to outfit Team USA for the 2022 Winter Games Opening Ceremonies.
December 8, 2021	Ralph Lauren  launches The Ralph Lauren Winter Escape on Roblox, a holiday-themed virtual experience that allows fashion fans to explore the world of Ralph Lauren through the metaverse.
August 25, 2021	Ralph Lauren announces it has partnered with Zepeto, a metaverse or virtual world app where users can socialize and create content—through the partnership, users can purchase exclusive digital apparel for their 3D avatars.
May 21, 2021	Ralph Lauren  partners with ASOS to launch a capsule collection that features shirts and embroidered polos.
May 19, 2021	Ralph Lauren launches a made-to-order polo shirt platform that allows buyers to customize shirts to their specifications and add graphics from selected patterns.
May 13, 2021	Ralph Lauren announces that it entered into an agreement to sell Club Monaco to private-equity firm Regent for an undisclosed sum.
March 2, 2021	Ralph Lauren launches its “The Lauren Look” size-inclusive subscription service: It starts at $125 a month and allows members to rent apparel from the most recent collections.
October 20, 2020	Ralph Lauren announces the appointment of Valerie Jarrett to its Board of Directors.
June 15, 2020	Ralph Lauren announces the nomination of Darren Walker to its Board of Directors.
December 2, 2019	Ralph Lauren pledges to use 100% renewable electricity by 2025.
April 18, 2019	Ralph Lauren launches a new product line, Earth Polo, with all products made from recycled materials.
March 1, 2019	Ralph Lauren appoints Jane Hamilton Nielsen as EVP and COO, effective March 31, 2019.

  Management Team

• Ralph Lauren—Executive Chairman and Chief Creative Officer
• Patrice Jean Louis Louvet—President and CEO
• Jane Hamilton Nielsen—COO and CFO

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Source: Company reports