Citing an effort to “boost brand prestige.”
Richard Phibbs
Ralph Lauren (NYSE:RL +1.87%) has announced that it will continue to raise its prices. The brand’s latest business development is an effort to boost brand prestige.
Since 2018, the quintessential American brand has increased the average price of its goods by about 80%. However, the brand’s gross margins last quarter were 61.7%. So the mission to continuously raise prices also coincides with boosting these figures to meet competitors like Tapestry Inc. and Capri Holdings Ltd.
“I don’t think there’s a limit as long as we do a good job on elevating the product, elevating the storytelling, elevating the environment,” Ralph Lauren’s Chief Executive Officer, Patrice Louvet, told Bloomberg. “The onus is on us to make sure that we are able to provide this consistent elevation. Then that will support the continued growth of average unit retail.”
Alongside its lineup of clothing, the brand’s elevation also plans to sell luxury home goods – rounding out its portfolio.