Ralph Lauren began a turnaround plan about a decade ago when it hired its first outside CEO, helping revive sales in recent years through a sharper focus on higher-end apparel.
The company plans to accelerate its reduction of off-price sales and abandon lower-tier full-price stores in the second half of fiscal 2027, Picicci said.
The company has been refreshing its product lineup with updated versions of fleece, sweatshirts and hoodies aimed at attracting younger shoppers. It has also been leaning on its marketing efforts, from sporting events to fashion shows.
Ralph Lauren's assortment of price points has helped keep sales afloat, analysts say, even as inflation-wary shoppers pull back on discretionary spending and shy away from price hikes from luxury rivals.
The brand sells everything from $118 polo shirts and $498 leather bags to $5,295 Purple Label hand-tailored cashmere jackets.
"Consumers continue to tell us that they see unique value in our offerings, from handbags to outerwear and beyond," Louvet said on a post-earnings call. Still, he added, "a healthier luxury market would be a tailwind for us."
Ralph Lauren is drawing a wide range of consumers through its "much broader lifestyle position," said Neil Saunders, managing director at GlobalData, adding that nostalgia and structured formal styles are helping attract younger shoppers.
French luxury group LVMH last month reported an uptick in sales in the second quarter driven by strong demand from affluent U.S. shoppers. But the relatively modest sales growth might not be enough to reassure investors that the $400 billion luxury sector is emerging from a two-year downturn.
Kering's flagship brand Gucci also reported better-than-expected quarterly sales in July.
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