For the first half of the year Ralph Lauren’s net profit was up 37.3 percent. Sales were up 2.3 per cent. Meanwhile Ralph Lauren resumed sourcing from Bangladesh. The American fashion company stopped producing garments in the Asian country in 2015, after the Rana Plaza collapse.
Ralph Lauren has ambitions to increase sales by a billion dollars by 2023. Marketing spend will go up by a 100 million dollars over the next five years. The aim is for half of the company’s growth to come from core categories — men’s shirting — and half from undeveloped categories like denim, wear-to-work, outerwear, footwear and accessories. The last few years have been about cutting costs including closing 50 stores, eliminating more than 1,000 jobs and removing three lines of management. The goal is to woo the next generation of consumers and increase gross margins by improving the core product (which makes up 60 per cent of overall revenue), amplifying under-penetrated categories (including women’s, outerwear and denim) and operating with discipline, which constitutes being more careful about discounts and promotions, more strategic when it comes to price, and cutting costs in creative-but-impactful ways. The brand targets working professional men in their early-to-mid 30s, new-to-the workforce women in their mid-to-late 20s, and the creative class.