RL - Ralph Lauren sets long-term sales margin growth targets ahead of investor day

Ralph Lauren Corporation ( NYSE: RL ) affirmed its fiscal 2023 guidance while setting longer-term targets on Monday.

Per a press release, the company expects an annual revenue growth rate in the  mid- to high-single digits through the 2025 fiscal year. Through that point, operating margin is expected to expand to at least 15%.

“Operating profit growth is expected to exceed the rate of top-line growth as a result of continued operating margin expansion,” the company statement read. “Operating margin is expected to expand to at least 15% by Fiscal 2025 in constant currency, driven by a combination of modest gross margin expansion and operating expense leverage balanced with continued investments in the Company’s long-term strategic priorities.”

Capital expenditures are expected to represent about 4% to 5% of revenue per annum through the same date.

“Since our last investor day in 2018, we have transformed our business – building a strong foundation with multiple engines of growth that are already showing momentum,” CEO Patrice Louvet said. “Our clear and choiceful strategies are expected to deliver sustainable long-term growth and value creation – fueled by our strong balance sheet and operating discipline – as we reinforce our position as a leading luxury lifestyle company.”

The details of these long-term strategies are due to be presented in an investor meeting to begin at 10:15AM ET. The event will be livestreamed .

In addition to margin expansion and sales growth aims, the company touted increased focus in shareholder return programs. Per the statement, the company plans to “return approximately $2B to shareholders on a cumulative basis through Fiscal 2025”  via dividends and buybacks.

Read more on the company’s recent dividend increase .

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