Ralph Lauren on Thursday rolled out its new strategic growth plan, as it looks to reshape its business that has been challenged by struggles in department stores and by new competition from digital upstarts.
It said that by 2023, it expects sales to grow at a compound annual rate in the low to mid single digits, excluding restructuring charges. It also expects its operating margin to be in the midteens over the same period.
The iconic apparel company announced a $1 billion stock repurchase program and an increase in its dividend of 25 percent.
It said that Linda Kozlowski, Etsy's chief operating officer, is joining the company's board. Last month, it announced the addition of Angela Ahrendts, Apple's senior vice president of retail, and Michael George, CEO of Qurate Retail, to the board.
Shares of the company were up nearly 2.4 percent in midmorning trading.
As part of Ralph Lauren's plan, it introduced a set of five strategic priorities, which were focused on the company's digital growth, financial discipline, reinvigorating its core business and "targeted" expansion in "regions and channels."
"We are confident that with our clear strategic plan in place, we can return Ralph Lauren to sustainable long-term growth and value creation," said CEO Patrice Louvet in a statement.
"By putting the consumer back at the center of our business, elevating and energizing our brands and balancing productivity with growth, we'll be well-positioned to deliver our next great chapter."