The strategy: Ralph Lauren isn’t going to pull back on price hikes anytime soon as it looks to elevate its brand cachet, per Bloomberg.
Ralph Lauren’s growth plans are focused on expanding its women’s business, including apparel and handbags, as well as broadening its reach in China and India.
The context: Personal luxury sales soared in 2021 and 2022 as younger and middle-income consumers splurged on high-end goods. However, many of those consumers either shifted their spending to travel and other services or pulled back due to inflation.
The challenge: Despite Ralph Lauren’s price hikes, the company’s gross margins (61.7%) remain lower than competitors such as Capri Holdings (64.9%) and Coach parent Tapestry (72.8%).
The big takeaway: In many ways, Ralph Lauren’s strategy echoes the strategy RH is pursuing.
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