Ralph Lauren Promotes ‘Timeless’ Brands to Next-Gen Consumers 

Ralph Lauren is offering the Fortnite llama alongside its iconic polo pony.

While reporting 1% revenue growth during the quarter ended Dec. 31, the luxury lifestyle brand announced some contemporary collaborations and marketing it’s using to reach out to new consumers, according to a Thursday (Feb. 9) press release.

“A key element of this strategy is our commitment to brand and product elevation — as we have demonstrated over the past five years — and we’re doing all this while maintaining flexibility to respond to consumer demand and market dynamics,” Ralph Lauren President and CEO Patrice Louvet said Thursday during the company’s quarterly earnings call.

During the past quarter, Ralph Lauren continued to invest in its “most powerful asset,” which is its timeless luxury brands that range across categories, Louvet said.

It did so with the release of a limited-edition collection of custom-made vintage ski jackets as well as collectible posters from the Ralph Lauren archive.

At the same time, the firm reached out to new customers with activities around gaming and the metaverse, including a collaboration with Fortnite in which it lent its Polo brand to the online video game’s character customization roster.

More collaborations of this sort targeting next-gen consumers are to be announced in the spring and fall, Louvet said.

“Together, these activations are both reengaging existing customers while also attracting younger, full-price consumers to our business,” Louvet said.

Ralph Lauren is also connecting with customers through all channels, Louvet said.

The firm reported that its number of followers on social media grew by high single digits to 51 million globally, its volume of online searches exceeds that of its competitors and its digital ecosystem revenues increased by high single digits.

It also continues to open new physical stores to engage directly with consumers, adding 55 locations during the quarter, mostly in China, Louvet said.

Looking ahead, Ralph Lauren expects fourth-quarter revenue to increase by mid to high single digits in constant currency during the current quarter, reiterating its earlier observation that its consumers are resilient.

“The global environment has been choppy,” Louvet said during the call. “We are encouraged that our core consumer has remained generally resilient, which reflects the growing desirability of our brand. At the same time, we continue to watch our more value-oriented customers and channels carefully.”

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