Ralph Lauren's high-end overhaul—and the CEO who ensured its success

As you walked through the space, navigating past the structure's marble Corinthian pillars and impressive staircase, you might have seen Anna Wintour from Vogue, positioned close to actress Anne Hathaway (wearing a beige trench coat) and country singer Kacey Musgraves (clad in a white tank top and cowboy hat). Not far off, Julia Louis-Dreyfus, known for her roles in Seinfeld and Veep, was socializing with Lauren’s spouse, Ricky.

The “The Modern Romantics,” program showcased a new line of women's apparel, a sector the brand is actively expanding in. Models displayed aviator jackets, cashmere shawls, and footwear that merged masculine and feminine elements, combining tough fabrics such as leather (used extensively) with delicate ones like lace. The fashion media subsequently hailed the event as a significant success. Following the presentation by all 47 models, the 85-year-old Ralph Lauren emerged to thunderous applause on the mezzanine, observing the scene.

From below, a well-dressed, bespectacled man with a sharp pocket square, Patrice Louvet, Ralph Lauren’s CEO, watched the designer with a deferential smile. While not a household name, he was recognized by the fashion crowd present, engaging in conversation with Wintour for a portion of the night. The company's current financial and cultural success owes a significant debt to Louvet, whose business expertise has enhanced Ralph Lauren the man's consistently accurate instincts.

Louvet, CEO since 2017, came from Procter & Gamble, a world of toothpaste and razor blades, but he has arguably saved the most important American fashion company from the threat of obsolescence. In the years before his arrival, Ralph Lauren—long a barometer for the financial health and cred of U.S. Fashion—had seen declining sales and profits, and more worryingly, declining brand equity. In its quest for growth and a wider customer base, it had become a fixture at discount chains like J.C. Penney, Kohl’s, and T.J. Maxx—retailers that don’t exactly scream “timeless luxury.” And Ralph Lauren’s welter of overlapping sub-brands was confusing its customers.

Masato Onoda—WWD/Getty Images

“There are a number of levers you can pull to continue fast growth that you can convince yourself are not problematic,” Louvet tells Coins2Day, describing that spiral at company headquarters in Manhattan on a hot day in early summer. He’s dressed in an immaculate navy blue suit from Purple Label, the company’s luxury men’s wear line. “You say we will do a little bit more, it’ll be fine, then yet more the next quarter, and you keep dialing it up,” he continued. Until one day, like a frog that’s been boiled gradually, your brand equity dies.

Louvet suggested that a company with a long history should revert to its original strengths to regain its appeal. Louvet, aged 61, states that this was the solution. “Ralph founded this company as a luxury company, and what we needed to do was go back to this mindset,”

Under Louvet, Ralph Lauren reduced its significant presence in over 1,000 U.S. Department stores, thereby decreasing the brand's substantial exposure to this struggling retail channel.. It has built more stand-alone stores and focused its product assortment on pricier items around which it can sustain its understated-but-upscale fashion narrative.

In eight years, Louvet has transformed a business that saw its revenue, $7.1 billion last fiscal year, consistently grow, with profits and operating margins reaching 13-year peaks. The average unit retail price, a measure reflecting the prices charged for all company products, has doubled. (Selling calfskin shoulder bags at $2,200 certainly contributes. Suits similar to the one Louvet wore to our meeting are priced at a substantial $2,995.) While not all items are excessively expensive—the $398 U.S. Flag cotton Polo sweater remains a consistent bestseller—the frequency of discounts has decreased annually.

The luxury halo appears to have returned—just in time for a period when more people are dressing up again after years of wearing athleisure everywhere. “Ralph Lauren has always been synonymous with quality, and that really resonates with consumers today,” says TD Cowen analyst John Kernan. Savvy marketing has helped the 58-year-old company become a hit with Gen Z shoppers and influencers, a promising sign for the long term. One big recent coup: In the social media posts where Taylor Swift announced her engagement to football star Travis Kelce, both were wearing Ralph Lauren.

Louvet readily attributes success to others, particularly the individual whose name graces every establishment and item. Ralph Lauren, in his capacity as executive chairman and chief creative officer, continues to significantly influence the company's operations. Leaders collaborating with founders, more so than typical CEOs, require a high degree of emotional intelligence, and Louvet, by all indications, possesses it abundantly; he excels at guiding without seeking the spotlight.

David Lauren, who serves as chief branding and innovation officer and is the sole child of Lauren's three to hold an executive position within the company, counts himself among Louvet's admirers. “When you find someone who also brings a unique humility, kindness, self-awareness, and maturity,” he remarks, "it's a remarkable fusion."

Born Ralph Lifshitz in the Bronx in 1939, Ralph Lauren has been a household name for longer than many American consumers can remember. Despite lacking formal fashion education, not creating his own designs, and having no expertise in fabric cutting, he consistently demonstrated keen insight and considerable boldness. Lauren initially gained recognition in 1967 for his neckties, which were broader than the prevailing trend. When Bloomingdale's indicated they would purchase his ties only if he made them narrower and substituted their Polo branding for Bloomingdale's own labels, he refused; the department store eventually agreed to his terms a few months later.

Lauren has consistently expressed a desire to find clothing seen in films available in retail. The act of marketing this aspirational lifestyle—encompassing the WASP look of a Connecticut estate, the sophisticated style of affluent university students, or the rugged charm of his Colorado ranch—has been central to his design philosophy. Filmmaker Ken Burns remarked in the 2019 documentary Very Ralph, “You’re not just buying an article of clothing, you’ve joined a narrative.”

Even so, says fashion historian Emma McClendon, Ralph Lauren has never tried to be cutting-edge. “What they’re attempting to be is the standard-bearer of American style,” she says. Being “timeless,” a word company executives use ad nauseam, is perhaps the cornerstone of its identity. By the 1980s and ’90s, Ralph Lauren’s suits became the uniform for many men on Wall Street, and Lauren has dressed first ladies from Nancy Reagan to Melania Trump, along with countless celebrities.

However, over the years, the firm's incredibly rapid ascent planted the roots of a critical challenge. A significant portion of its expansion stemmed from licensing agreements. By the turn of the millennium, approximately 26 external businesses were producing and promoting the products Lauren created, which diminished the company's oversight of aspects like quality, distribution, and brand value. Furthermore, the business encountered immense pressure to sustain its momentum following its initial public offering in 1997.

Management delivered: Between 2007 and 2015, Ralph Lauren revenue rose 80%, to a peak of $7.6 billion. But the quest led the company down some ill-advised roads. By the late 2000s, convinced it could retain credibility while selling lower-end brands at discount chains, Ralph Lauren was everywhere from Saks Fifth Avenue to J.C. Penney. Trying to be all things to all people “is often the beginning of the end for luxury brands,” says Silvia Bellezza, a former LVMH executive who teaches marketing at Columbia Business School.

Ralph Lauren also gambled with its production, making too much in an effort to avoid losing sales, which subsequently resulted in significant markdowns on excess inventory. It became ambiguous what this brand represented: a luxury competitor to labels like Brioni, or a seller of four-packs of socks for $10 at T.J. Maxx.

With business declining, the Lauren family possessed a crucial edge: they owned most of the voting stock (currently 85%). This ownership protected Ralph Lauren from severe actions an activist shareholder might have forced, and it allowed the family the necessary flexibility to improve the business.

In 2015, Lauren declared his departure as CEO, though he remained as chief creative officer. He passed leadership to Stefan Larsson, who had achieved remarkable success as global president of Old Navy, and whom Lauren urged to introduce new ideas. Larsson initiated the challenging task of restructuring: In 2016, Ralph Lauren reduced its workforce by 8%, cutting 1,200 positions. The company also started closing stores, such as its recently opened Polo store on Fifth Avenue in Manhattan, a decision that fueled perceptions of a company in turmoil.

But for a founder with such a strong point of view, ceding any measure of control proved to be difficult. Larsson was gone by May 2017, after only 20 months. Media reports at the time suggested that Lauren and Larsson agreed on where the company should be heading but not on how to get there. (Larsson, who is now CEO of PVH, the parent company of Calvin Klein and Tommy Hilfiger, says he remains a big fan of the company. “I was honored to play a part in its journey, contributing to that strong foundation and heritage that Ralph and Patrice have so successfully tapped into,” he told Coins2Day.)

Patrice Louvet arrived with almost 29 years at P&G, giving him impressive brand-building skills and a deep understanding of global supply chain complexities. He also knew how to run a big team. Ralph Lauren's staff had grown to 25,000, resulting in a bureaucratic organizational structure with redundant roles; Louvet methodically streamlined it. David Lauren states “The company was hungry for someone who could organize it into a smoothly functioning system,”. “A lot of creativity didn’t have an outlet.”

Following the intense period before his start, Louvet's interpersonal abilities were equally appealing. A seemingly simple early action he took was developing a mission statement that motivated the staff after the 2016 job cuts. Louvet, who spends several hours each week at lunch with Lauren discussing work and personal matters, is impressed by how his superior frequently poses profound, existential questions to him, such as “Are you happy?” “No one at P&G ever asked me that. It’s an amazing question,”, Louvet explains. He has since adopted this practice with his own team leaders.

Regardless of how close the collaboration, Lauren holds the ultimate authority. Louvet's agreement includes a clause stating that Lauren has the decisive power over brand and creative choices, as well as the employment and termination of senior figures in design and marketing. (Larsson's contract lacked this stipulation.)

Louvet states that he and Lauren identified their respective strengths for leadership: “It’s not written, ‘Patrice, you do this; Ralph, you do that,’ and yet naturally we have fallen into our respective roles.” Lauren himself readily praises their joint efforts. “This company has never been a one-man show,” he commented in a release. “No one achieves this alone.”

Brand degradation often starts subtly before accelerating rapidly. This was the challenge Louvet faced upon arriving at Ralph Lauren. From 2016 to 2018, sales decreased by $1.3 billion, a drop of 18%, while profits were in sharp decline. (Although sales started to recover in 2019, they plummeted once more during the pandemic.)

Alex Fradkin for Coins2Day

Louvet implemented alterations, including reducing Ralph Lauren's footprint to enhance its impact. Following Larsson's initiatives, he proceeded to withdraw the brand from department stores that failed to present it effectively. The company has departed from approximately two-thirds of the North American department stores where it was once prominently featured. In 2011, Macy's alone generated $1 billion in Ralph Lauren product sales, representing 22% of the fashion label's revenue. This figure has since significantly diminished.

Concurrently, Ralph Lauren grew its own retail presence. Its physical reach is still quite limited, with 269 company-owned stores globally. However, within these locations, the brand meticulously crafts the environment for peak effect. Lauren's cinematic vision influences the aesthetic and creates a distinct visual language that differentiates a Ralph Lauren blazer from competitors'. The Ralph Lauren flagship store on Manhattan's Madison Avenue perfectly illustrates this strategy. Solid wood desks, leather seating, and equestrian-themed art evoke a sense of an elite country club, yet one that feels welcoming. This stands in stark contrast to the department store atmosphere of the 2010s, characterized by stacks of uncreased Polo Bear sweaters carelessly placed on surfaces.

Ralph Lauren's standalone stores also contribute to generating excitement. The women's boutique, situated opposite the main store on Madison Avenue, features the highly sought-after Ralph’s Coffee, which frequently sees queues extending down the street. This location represents the inaugural Ralph's Coffee; the brand now operates 30 such outlets globally, with plans for further expansion. The company strategically displays its high-end handbags adjacent to the coffee shop, aiming to attract affluent residents and visitors. Louvet expresses a desire for Ralph Lauren to achieve the same level of prominence in the handbag market as it currently enjoys in sweaters and polo shirts.

Tingshu Wang—Reuters

In addition to its other offerings, the establishment features antique jewelry and vintage apparel, enhancing the enjoyable treasure-hunting experience that many retailers abandon in their drive for efficiency. Returning to the men's flagship location, a new, exceptionally opulent suite is available for top clients to utilize for exclusive shopping or private gatherings. In the SoHo district, the well-liked Double RL shop showcases leather jackets and denim favored by artistic individuals, provided they possess a substantial disposable income.

Expanding globally with numerous retail locations isn't planned. Louvet states the business will concentrate on its “gateway cities” (presently operating 30 with intentions to open 20 more in the coming three years), while reaching other customers through its online platform or its wholesale associates. However, the sophisticated displays in its proprietary stores have enabled a sharper distinction among its sub-brands. Among Louvet's initial actions was divesting the mass-market label Club Monaco, thereby enhancing the distinctiveness of the remaining brands.

“We sometimes get reduced to, ‘You’re the preppy style guys,’” Louvet says. “But actually this brand is multidimensional. You want to be a cowboy in Colorado? Double RL gives you that. And you want to be some dandy on Savile Row? Purple Label can give you that. You want to be a college kid at Boston University? We have rugby shirts.”

The distinct branding enables Ralph Lauren to offer Purple Label men's dress shirts at $800, while comparable Polo shirts are priced at $138, preventing customer confusion or dissatisfaction.

The firm has also significantly improved its marketing efforts directed at these consumers and its data collection concerning them. Ralph Lauren allocates approximately 7.3% of its revenue to marketing, a figure nearly twice what it was several years prior. This strategy has become more precise and impactful, aiming to attract younger shoppers who prefer “old money” and timeless styles but seek more budget-friendly options compared to brands like Hermès or Balenciaga.

Ralph Lauren now has much deeper data it can analyze, not just for personalizing ads but to figure out what products would do best under what sub-brand. “We are more precise, more targeted, more intentional,” says chief product and merchandising officer Halide Alagöz. While roughly 70% of Ralph Lauren’s goods are similar year in, year out, that data helps the company reduce the risk of misfires for the other 30%, or simply to know if a new jean jacket might make more sense for RRL or for Polo.

Alagöz maintains that the business of selling doesn't stifle creativity. Designers' passions still drive new collections; for instance, Ralph Lauren recently unveiled the well-received Oak Bluffs collection, which captures the sharp aesthetic of historically Black colleges and the Black community on Martha's Vineyard. Additionally, the brand partnered with Major League Baseball to produce items like sweaters and satin jackets featuring prominent team emblems.

Regardless of the blend of creativity and business acumen, the brand is successfully attracting younger consumers. According to research firm Kantar's BrandZ tracker, Ralph Lauren now holds the fourth-highest brand value within the luxury apparel sector for young individuals, a significant advancement from its standing five years prior.

This popularity has come much to Louvet’s relief. He recalls being asked by friends before starting his CEO job whether Ralph Lauren could still be relevant. “It was clear at the time that for the younger generation, the answer was no,” he says. Now, young people are dying for a table at the Polo Bar, a celebrity-packed eatery that is one of the hardest places to land a reservation in Manhattan. The bar features a $110 steak and a $495 martini: Timeless luxury, in food and beverage form.

As Ralph Lauren started its post-pandemic recovery in 2022, the company launched a three-year expansion strategy, ambitiously named “The Next Great Chapter.” Women play a pivotal role in this narrative: The firm is concentrating heavily on its women's division, valued at close to $2 billion, which accounts for roughly 30% of apparel revenue. The company feels that segments such as handbags and outerwear, along with emerging markets like India and secondary cities, are not yet fully exploited. “I am planting the seeds for my successor,” Louvet stated.

Louvet has considerable potential, as evidenced by the favorable reviews his women's collection received in April. However, the nature of fashion dictates that a brand must constantly evolve. Louvet acknowledges this, stating, "“It’s got to stay fresh,”." His superior also insists on continuous improvement, as noted by "“As soon as we’re done with a fashion show, [Ralph] celebrates for about 12 seconds, maybe 15, and then he’ll say, ‘What’s the next thing going to be, and how are we going to raise the bar?’”."

Doing more with fewer brands

Ralph Lauren's collection features around a dozen sub-brands, a notable reduction from ten years prior, each catering to a specific customer group. Below are the most prominent ones, ranked from most luxurious to least.

Ralph Lauren's women's line and Ralph Lauren Purple Label for men

The premier brands in the collection, positioning the firm against elite labels such as Brioni and Hermès. A significant portion of the merchandise is custom-made by hand, with many pieces originating from Italy. (A Western-style shirt for men, crafted from a cotton-linen denim blend in Purple Label, is priced at $995, and a substantial tote bag made of calfskin is available for $4,400.)

Double RL

Double RL, named after the initials shared by Ralph Lauren and his wife, Ricky, is a premium collection drawing inspiration from vintage workwear and American West imagery. A T-shirt priced at $50 from Polo is available for approximately $80 at RRL. Established in 1993 and primarily concentrating on menswear, Double RL is now expanding its reach into the women's market.

Polo Ralph Lauren

This is the company's primary brand. Although significantly more affordable than Collection or Purple Label, Polo, featuring its easily identifiable and widespread polo player emblem, isn't precisely inexpensive, with certain sweaters priced at $400. The brand emphasizes preppy styles that suggest an active way of life.

RLX

This company specializes in athletic wear with a technical focus, featuring moisture-wicking polo shirts and outdoor items like pullovers and windbreakers. Golf apparel is a particular area of concentration.

Lauren Ralph Lauren

This women’s line caters to what Ralph Lauren calls “aspirational” luxury seekers, with lower prices than the company’s other brands.

This article appears in the October/November 2025 issue of Coins2Day with the headline “Restoring the aura of Ralph Lauren.”