Ralph Lauren Charts a New Course

It’s been tough road for Ralph Lauren as the company approaches it’s 50th year.
Revenue has fallen, the company is closing it’s iconic Fifth Avenue flagship store, and it’s legacy strategy and products are struggling to find a new path in the changing retail landscape.
However, a revitalized management team, led by new CEO Patrice Louvet, appears to be navigating a course toward success.
Last week, Ralph Lauren reported results that beat analysts’ expectations. On a global basis, margins improved, promotions and inventory decreased. (Although North American sales for Q4 were down, Asia and EU were up).
The stock popped +14%.
Mr. Louvet has a refreshing focus on consumer insights and path-to-purchase, a “listen more and speak less” approach. I’m a fan of Mr. Louvet, the refreshed RL management team, the brand(s) and the company, and… of discovering and delivering on the consumer’s “job to be done.”
Fingers crossed…

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