Major luxury retailers like Coach and Ralph Lauren are heavily investing in their outlet operations to target aspirational consumers, transforming these spaces into high-end destinations rather than mere inventory clearance channels. Since 2022, the luxury market has lost roughly 70 million customers, dropping to about 330 million by end of 2025, with sales down 2% to just over $400 billion. The USLUX fund, which includes LVMH, Ferrari and Hermès, has declined 7% year to date, compared to an 8% gain for the S&P 500. Ralph Lauren’s net sales have nearly doubled since fiscal year 2021 to over $8 billion, with analysts expecting $8.627 billion this year. Wells Fargo maintains an overweight rating on Ralph Lauren with a $425 price target, implying 14% upside, while Bernstein has an outperform rating on Tapestry with a $180 target, suggesting 26% potential.
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