Inside Ralph Lauren’s American Tradition

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On January 4, 2025, Ralph Lauren was awarded the Presidential Medal of Freedom by President Biden at the White House.  The Medal is “the nation’s highest civilian honor, presented to individuals who have made exemplary contributions to the prosperity, values, or security of the United States, world peace, or other significant societal, public or private endeavors.”

Prestige sports sponsorships have magnified Ralph Lauren’s style and influence at Wimbledon, the U.S. Open and the Paris Olympics. Ralph Lauren has outfitted the U.S. Olympic and Paralympic Teams since 2008, elevating the brand and exposing it to new customers.

Ralph Lauren is the first and only fashion designer to receive this prestigious award.  He was chosen for his influential imprint on American style and redefinition of “the fashion industry with a lifestyle brand that embodies timeless elegance and American tradition. He has influenced culture, business, and philanthropy, notably in the fight against cancer and the preservation of the Star-Spangled Banner.” Bravo Ralph!

The Company We Keep

Ralph Lauren is in good company.  Eight Presidents have received the Presidential Medal of Freedom – Kennedy, Johnson, Reagan, Ford, Carter, George H.W. Bush and Biden (with distinction, when he was Vice President). Other winners have included peacemakers and statesmen Nelson Mandela, Desmund Tutu, Colin Powell, Henry Kissinger and Martin Luther King; astronauts, Neil Armstrong and the crew of Apollo 13; athletes, from Yogi Berra to Hank Aaron to this year’s honoree, ‘Magic’ Johnson; entertainers, from Irving Berlin, Ella Fitzgerald and Duke Ellington, to Bruce Springstein and Bob Dylan; and, those perhaps in a more saintly category like Helen Keller and Mother Teresa.

Sartorial Style

Ralph was dressed for the occasion quintessentially Ralph in a black and white tweed jacket, white shirt and black knit tie. His family was present, along with President Biden, the First Lady, the Vice President and the Second Gentleman.  I’m not sure if any of the others wore Ralph Lauren that day, but President Biden was dressed head to toe in Ralph Lauren  – top coat, suit, tie, for his inauguration in 2021. For President Trump’s first inauguration, Melania was dressed in Ralph Lauren couture, and for the 2025 inauguration, both the outgoing President and the First Lady were outfitted completely in Ralph Lauren.

An American Tradition

Ralph Lauren is a brand that has lived in the American consciousness for well over 50 years.  Ralph stepped down as CEO ten years ago but continues to hold the title Executive Chairman and Chief Creative Officer – the same title he has had since the company’s founding in 1967.  The Ralph Lauren family controls 84.5 percent of the company’s

B stock which gives them a say over Board appointments and other corporate decisions. While stumbling a bit with a corporate turnaround about 10 years ago — too many sub-brands, too much inventory and not enough profit, as well as a misstep with previous CEO Stefan Larson — Ralph Lauren has cleaned up its act, while maintaining its clear-cut focus on classic American style.

Over Achiever

At its last earnings report on November 7, 2024, Ralph Lauren beat analyst expectations with earnings up 5 percent over the previous year and 21 percent on an adjusted price basis.  Ralph Lauren stock saw a 34 percent return last year, outpacing the S&P return of 25.4 percent. The next earnings report will come out on February 6 this year, but it seems the company is well positioned to maintain its momentum and continue the successful implementation of its 2022 strategic plan, ‘The Next Great Chapter.’  President and CEO, Patrice Louvet, who was appointed in 2017 after a 25-year international career at P&G, oversees the execution of the plan which has three pillars: “elevate and energize our lifestyle brand, drive the core and expand for more, and win in key cities with our consumer and ecosystem.”  Sounds a bit of corporate speak but it provides a focus … and it’s working.

All Channels

The company has been particularly successful in its digital transformation.  The direct-to-consumer business saw its best comps in 10 years at the last earnings report, and this growth occurred across all the key regions, North America, the EU and Asia. At the same time, Ralph Lauren is managing a planned decline in North American wholesale, once a mainstay of the business, but now a bit of a drag with the overall weakening of the department store sector.

Prestige sports sponsorships have magnified Ralph Lauren’s style and influence at Wimbledon, the U.S. Open and the Paris Olympics. Ralph Lauren has outfitted Team USA for the Olympic and Paralympic Games since 2008, elevating the brand and exposing it to new customers.  As an American, it always gives me pride to see the US Olympic team parade in and out of the arenas, perfect all-American models, in all of their diversity, in their perfect all-American red, white and blue outfits.

Analysts like what they see.  Wells Fargo noted, “…RL delivered their strongest top-line beat in 18 months…DTC comps were the standout (+10 percent) while ongoing margin gains continued.  No holes to poke.”  Evercore ISI said, “…we think FQ2 results shine a bright light on 7 years of elevating the brand through exiting low-end distribution, reducing discount-driven customers and consistently reinvesting for growth.”

Aspirations and American Dreams

I recently visited the Ralph Lauren mansion on Madison Avenue in New York, its gorgeous showcase for the brand.  Lines curled around the block as customers waited for a cup of Ralph’s Coffee — an opportunity to taste and be a part of the brand, if not to own a more expensive piece of it. The mansion was buzzing with holiday promise. From the clothes, palette, décor, sensory experience and even the picture-perfect customers shopping or browsing happily for gifts for themselves and loved ones, all seemingly part of a set piece. Customer service is superior, even flawless.  There is nothing too large or small for the associates — all dressed in their own personal expression of Ralph Lauren style — to do for a customer. My overall experience shopping both the mansion and selected Ralph Lauren stores over the years is that this is not an anomaly, but rather an intimate expression of a well-executed brand strategy and company culture.

 

Ralph Lauren’s corporate ’purpose’ is “to inspire the dream of a better life through authenticity and timeless style.”  To me, this is not a vague platitude but the firm underpinning for the most successful lifestyle brand in American history. There is simply none to compare it with. No other American brand or fashion company comes close — not by a long shot.  The company’s stated corporate ‘ambition,’ “We will be a leading luxury lifestyle company,” is an actualization of its purpose. A forward-looking statement of how the company wants to see and position itself for the long term.  At this moment in time, I’d say Ralph Lauren is succeeding on its own metrics. And, to this, I say, again, bravo, Ralph

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