Howdy everyone! I hope you all had a great weekend as we roll further into September. This week, we’re shining a light on a company with legacy sewn into its polo shirts and patterns: Ralph Lauren. They've spent decades defining Americana, but 2025 has them doubling down on a new transformation. Less flash and more becoming a luxury “blue chip” brand. Let’s unpack what they’re doing, what’s working, what to watch, and what every founder can learn from their strategy.

Ralph Lauren’s journey began in 1967, when he was just a 28-year-old Bronx native working as a tie salesman. With $50,000 in funding, he launched his first line of men’s ties under the name “Polo.” What set them apart was their width and boldness. They were different from the thin ties that dominated at the time. It was a simple but powerful lesson: differentiation, when done with confidence, creates markets. Within a year, Lauren was selling out of Bloomingdale’s, a first for a designer brand inside a major department store.

From there, the brand quickly expanded. In 1968, Lauren introduced a full line of menswear under the Polo name, offering not just clothing but a lifestyle. The 1970s marked Ralph Lauren’s first big leap into American consciousness. In 1971, he launched his first women’s line, followed by the now-iconic Polo shirt in 1972, embroidered with the polo player logo. More than a garment, it became a cultural symbol. Aspirational, preppy, sporty, yet accessible. By the late 70s, Ralph Lauren was defining an entire aesthetic of “American luxury,” one rooted not in Parisian couture but in country clubs, Hamptons summers, and New England prep schools.

The 1980s and 90s were decades of aggressive expansion. Ralph Lauren entered fragrances, eyewear, home furnishings, children’s clothing, and accessories. It wasn’t just about apparel anymore, it was about a complete lifestyle ecosystem. The company opened flagship stores, like the Polo Mansion on Madison Avenue in 1986, designed to immerse customers in the brand’s world. This strategy positioned Ralph Lauren not just as a fashion designer but as a curator of taste and identity. The brand’s storytelling through glossy advertisements, catalogues, and cinematic campaigns further reinforced its image as an aspirational yet attainable dream.

The company went public in 1997, cementing its place as one of the most influential American fashion houses. By then, Ralph Lauren was no longer just a clothing label; it was a global empire spanning multiple product categories and continents. But success came with challenges. The 2000s saw increased reliance on wholesale and outlet channels, which diluted brand prestige. The rise of fast fashion and digital retail chipped away at margins. By the mid-2010s, the brand was at risk of losing relevance with younger consumers, as well as struggling to justify its premium positioning in an increasingly crowded marketplace.

Yet Ralph Lauren’s resilience has been its ability to continuously recalibrate without abandoning its core. Where many brands lose themselves chasing trends, Ralph Lauren has leaned on its founding vision, an immersive lifestyle of American luxury and they evolved their strategy around it. That combination of heritage and adaptation set the stage for its latest reinvention, one that aims not just to survive but to ascend into true “blue-chip” luxury.

In 2025, Ralph Lauren is making it clear: they’re not chasing fast fashion or hype culture, they’re building a disciplined path to enduring relevance. Ralph Lauren is now 85 and he’s determined to see the brand and it’s image make it well after he’s gone. The brand’s latest quarterly results and investor updates give us a roadmap of how a legacy company tightens its seams and elevates without losing its identity.

The numbers themselves are impressive. For Q1 Fiscal 2026, Ralph Lauren reported $1.72 billion in revenue, up 14% year-over-year (11% in constant currency). Growth was balanced across geographies: Asia led the way with over 30% gains, Europe delivered double-digit increases, and North America rose by 8%. Even more telling, margins improved. Gross margin hit 72.3%, up nearly two points from last year. The drivers? Fewer discounts, better product mix, and lower input costs. The message is simple: Ralph Lauren is selling more at full price, and customers are paying for it.

But beyond the numbers, the strategy stands out. CEO Patrice Louvet has called the company’s current phase “The Drive Plan,” a blueprint focused on mid-single-digit revenue growth and margin expansion through 2028. Importantly, it’s not just about growth, it’s about quality growth. The plan emphasizes four pillars: direct-to-consumer (DTC) expansion, brand elevation, international market penetration, and digital enablement.

Direct-to-consumer is where the most change is happening. Comparable DTC store sales rose 13% last quarter, with digital commerce in Asia up over 35%. Ralph Lauren has been deliberately shifting away from overreliance on wholesale and department stores toward controlling its own distribution. This isn’t just a margin play; it’s about owning the customer relationship, curating the experience, and strengthening loyalty. Opening 24 new stores in the quarter, many in Asia’s booming luxury hubs reinforces this. The brand wants to be where its aspirational customer is shopping and experiencing luxury.

The second pillar is brand elevation. Ralph Lauren has been actively reducing discounting, resisting the temptation to clear shelves at the cost of brand prestige. This move aligns with the rise of “quiet luxury”, a cultural trend favoring understated elegance over loud logos. Ralph Lauren’s designs, messaging, and even store experiences are aligning with this sentiment, helping justify higher price points. The fact that average unit retail prices (AUR) rose significantly in recent quarters shows the strategy is landing with customers.

Third is global growth. Ralph Lauren is sharpening its footprint in major metropolitan cities where luxury consumption is surging in Shanghai, Seoul, Paris, Milan, London, and New York. The company isn’t just opening more stores; it’s designing immersive flagship experiences that showcase the entire lifestyle, from apparel to home. By rooting its identity in key cultural capitals, Ralph Lauren can cement its positioning as a global luxury player, not just an American icon.

Finally, digital enablement ties it all together. The company has invested heavily in predictive tech for inventory and supply chain, as well as seamless omnichannel experiences. From personalized online shopping to integrated loyalty programs, Ralph Lauren is quietly building the tech backbone to support its luxury positioning.

The risks are real: economic headwinds, tariffs, currency swings, and the ever-present danger of alienating customers if price hikes outpace perceived value. But the path is deliberate. Ralph Lauren is sending a message that being built to last isn’t about explosive growth, it’s about slow planned growth, disciplined execution, and a commitment to heritage that adapts without compromise.

What Ralph Lauren is teaching us: quiet growth beats shouting. When you’ve built legacy, it’s tempting to chase headlines with big drops or viral products. But the longevity lies in consistency, positioning, and preserving what people already love, while nudging them forward.

Entrepreneurs should note: Price power comes from alignment between brand promise and delivery. If you want to grow per Ralph Laurens current philosophy, invest in customer experience, invest in quality, limit discounting, put stakes in the future (key cities, DTC, experience), and communicate the “why” behind each move. That builds trust and framework for premium.

Structure matters. Ralph Lauren’s current path isn’t flashy, it’s steady, intentional, and aligned with heritage.

Start by tightening what’s core: design, quality, message. Then lean into channels like wholesale, direct retail, international and digital, but only when execution can scale without compromising what gives you meaning.

Thanks for reading this week’s edition of Built to Last! We’re always looking to improve, and your thoughts help us get better with every issue.

Got a founder you’d love to see featured? A strategy you’d like broken down? Or just want to tell us we gave you wings?

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Until next time,

— The Built to Last Team

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