Deutsche Bank analysts provided their views on Ralph Lauren Corporation (NYSE:RL) following the company’s Investor Day, where it detailed a long-term strategy that includes accelerated top-line growth, gross margin expansion, and operating profit growth to exceed top-line growth, leading to operating margin of over 15% by 2025 (ahead of the Street estimates).

According to the analysts, the company’s strategic growth plan builds upon the foundation it has set over the last four years, which has positioned the company to accelerate growth.

What stood out to the analysts was management’s commitment to further AUR gains (which has increased 64% vs. 2018) along with its mid-single-digit three-year CAGR target for North America.