Cover and table of contents

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Cover and table of contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)


☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 27, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 001-13057

Ralph Lauren Corporation

(Exact name of registrant as specified in its charter)


Delaware		13-2622036
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
650 Madison Avenue,		10022
New York,	New York	(Zip Code)
(Address of principal executive offices)

(212) 318-7000

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of Each Class			Trading Symbol(s)						Name of Each Exchange on which Registered
Class A Common Stock, $.01 par value			RL						New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☑	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

At January 30, 2026, 38,655,137 shares of the registrant's Class A common stock, $.01 par value, and 21,881,276 shares of the registrant's Class B common stock, $.01 par value, were outstanding.

RALPH LAUREN CORPORATION

INDEX


		Page

PART I. FINANCIAL INFORMATION (Unaudited)
Item 1.	Financial Statements:
	Consolidated Balance Sheets	2
	Consolidated Statements of Operations	3
	Consolidated Statements of Comprehensive Income	4
	Consolidated Statements of Cash Flows	5
	Consolidated Statements of Equity	6
	Notes to Consolidated Financial Statements	8
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	36
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	61
Item 4.	Controls and Procedures	61

PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	62
Item 1A.	Risk Factors	62
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	62
Item 5.	Other Information	63
Item 6.	Exhibits	63
Signatures		64


			1

RALPH LAUREN CORPORATION

CONSOLIDATED BALANCE SHEETS

(Unaudited)


	December 27, 2025		March 29, 2025
	(millions)
ASSETS
Current assets:
Cash and cash equivalents	$	2,031.9	$	1,922.5
Short-term investments	218.9		160.5
Accounts receivable, net of allowances of $207.7 million and $186.3 million	460.7		459.5
Inventories	1,149.4		949.6
Income tax receivable	69.1		55.4
Prepaid expenses and other current assets	259.3		242.4
Total current assets	4,189.3		3,789.9
Property and equipment, net	1,071.4		846.4
Operating lease right-of-use assets	1,140.1		1,013.1
Deferred tax assets	326.3		335.4
Goodwill	912.2		888.5
Intangible assets, net	54.6		62.8
Other non-current assets	119.9		111.2
Total assets	$	7,813.8	$	7,047.3
LIABILITIES AND EQUITY
Current liabilities:

Current portion of long-term debt	$	—	$	399.7
Accounts payable	543.7		436.0
Current income tax payable	93.7		146.5
Current operating lease liabilities	226.2		225.4
Accrued expenses and other current liabilities	1,132.0		926.1
Total current liabilities	1,995.6		2,133.7
Long-term debt	1,238.3		742.9
Long-term finance lease liabilities	218.4		234.8
Long-term operating lease liabilities	1,155.3		1,044.7

Non-current liability for unrecognized tax benefits	169.2		193.3
Other non-current liabilities	148.6		109.4
Commitments and contingencies (Note 12)
Total liabilities	4,925.4		4,458.8
Equity:
Class A common stock, par value $.01 per share; 113.5 million and 112.5 million shares issued; 38.7 million and 39.6 million shares outstanding	1.1		1.1
Class B common stock, par value $.01 per share; 21.9 million shares issued and outstanding	0.2		0.2
Additional paid-in-capital	3,118.4		3,031.7
Retained earnings	8,213.8		7,590.1
Treasury stock, Class A, at cost; 74.8 million and 72.9 million shares	(8,210.0)		(7,734.7)
Accumulated other comprehensive loss	(235.1)		(299.9)
Total equity	2,888.4		2,588.5
Total liabilities and equity	$	7,813.8	$	7,047.3

See accompanying notes.


			2

RALPH LAUREN CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)


	Three Months Ended				Nine Months Ended
	December 27, 2025		December 28, 2024		December 27, 2025		December 28, 2024
	(millions, except per share data)
Net revenues	$	2,406.0	$	2,143.5	$	6,135.8	$	5,381.7
Cost of goods sold	(724.3)		(677.4)		(1,845.4)		(1,694.1)
Gross profit	1,681.7		1,466.1		4,290.4		3,687.6
Selling, general, and administrative expenses	(1,178.6)		(1,064.2)		(3,211.4)		(2,872.5)

Restructuring and other charges, net	(31.8)		(12.2)		(88.4)		(38.0)
Total other operating expenses, net	(1,210.4)		(1,076.4)		(3,299.8)		(2,910.5)
Operating income	471.3		389.7		990.6		777.1
Interest expense	(13.3)		(11.6)		(40.7)		(33.9)
Interest income	11.9		17.8		41.3		55.8
Other expense, net	(6.1)		(12.2)		(6.6)		(10.6)
Income before income taxes	463.8		383.7		984.6		788.4
Income tax provision	(102.2)		(86.3)		(195.1)		(174.5)
Net income	$	361.6	$	297.4	$	789.5	$	613.9
Net income per common share:
Basic	$	5.91	$	4.76	$	12.93	$	9.78
Diluted	$	5.82	$	4.66	$	12.66	$	9.57
Weighted-average common shares outstanding:
Basic	61.1		62.5		61.1		62.8
Diluted	62.2		63.8		62.4		64.1
Dividends declared per share	$	0.9125	$	0.825	$	2.7375	$	2.475

See accompanying notes.


			3

RALPH LAUREN CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


	Three Months Ended				Nine Months Ended
	December 27, 2025		December 28, 2024		December 27, 2025		December 28, 2024
	(millions)
Net income	$	361.6	$	297.4	$	789.5	$	613.9
Other comprehensive income (loss), net of tax:
Foreign currency translation gains (losses)	4.2		(117.7)		73.9		(57.8)
Net gains (losses) on cash flow hedges	8.6		18.4		(8.6)		9.0
Net gains (losses) on defined benefit plans	(0.1)		0.2		(0.5)		0.1
Other comprehensive income (loss), net of tax	12.7		(99.1)		64.8		(48.7)
Total comprehensive income	$	374.3	$	198.3	$	854.3	$	565.2

See accompanying notes.


			4

RALPH LAUREN CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


	Nine Months Ended
	December 27, 2025		December 28, 2024
	(millions)
Cash flows from operating activities:
Net income	$	789.5	$	613.9
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	172.2		164.6
Deferred income tax expense (benefit)	(9.5)		27.2

Stock-based compensation expense	86.7		84.7


Bad debt expense	6.7		2.7
Other non-cash charges	5.4		14.8
Changes in operating assets and liabilities:
Accounts receivable	7.7		(5.1)
Inventories	(169.2)		(116.7)
Prepaid expenses and other current assets	(37.9)		(68.0)
Accounts payable and accrued liabilities	277.2		368.6
Income tax receivables and payables	(75.6)		12.2

Operating lease right-of-use assets and liabilities, net	(19.4)		15.5
Other balance sheet changes	(24.9)		(1.5)
Net cash provided by operating activities	1,008.9		1,112.9
Cash flows from investing activities:
Capital expenditures	(356.7)		(136.3)
Purchases of investments	(557.1)		(628.2)
Proceeds from sales and maturities of investments	507.0		538.9



Other investing activities	4.5		1.2
Net cash used in investing activities	(402.3)		(224.4)
Cash flows from financing activities:

Proceeds from the issuance of long-term debt	498.2		—
Repayments of long-term debt	(400.0)		—
Payments of finance lease obligations	(17.7)		(16.5)
Payments of dividends	(161.3)		(150.1)
Repurchases of common stock, including shares surrendered for tax withholdings	(473.4)		(404.6)

Other financing activities	(4.3)		—
Net cash used in financing activities	(558.5)		(571.2)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	61.9		(40.9)
Net increase in cash, cash equivalents, and restricted cash	110.0		276.4
Cash, cash equivalents, and restricted cash at beginning of period	1,929.4		1,670.6
Cash, cash equivalents, and restricted cash at end of period	$	2,039.4	$	1,947.0

See accompanying notes.


			5

RALPH LAUREN CORPORATION

CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited)


	Three Months Ended December 27, 2025
	Common Stock(a)			Additional Paid-in Capital					Treasury Stock at Cost
		Retained Earnings						Total Equity
	Shares	Amount				Shares			Amount	AOCI(b)
	(millions)
Balance at September 27, 2025	135.4	$	1.3	$	3,093.5	$	7,907.4		74.7	$	(8,172.2)	$	(247.8)	$	2,582.2
Comprehensive income:
Net income						361.6
Other comprehensive income												12.7
Total comprehensive income														374.3
Dividends declared						(55.2)								(55.2)
Repurchases of common stock, including excise tax									0.1	(37.8)				(37.8)
Stock-based compensation				24.9										24.9

Balance at December 27, 2025	135.4	$	1.3	$	3,118.4	$	8,213.8		74.8	$	(8,210.0)	$	(235.1)	$	2,888.4

	Three Months Ended December 28, 2024
	Common Stock(a)			Additional Paid-in Capital					Treasury Stock at Cost
		Retained Earnings						Total Equity
	Shares	Amount				Shares			Amount	AOCI(b)
	(millions)
Balance at September 28, 2024	134.4	$	1.3	$	2,983.8	$	7,265.4		72.3	$	(7,582.5)	$	(225.7)	$	2,442.3
Comprehensive income:
Net income						297.4
Other comprehensive loss												(99.1)
Total comprehensive income														198.3
Dividends declared						(51.0)								(51.0)
Repurchases of common stock, including excise tax									0.3	(75.1)				(75.1)
Stock-based compensation				24.7										24.7

Balance at December 28, 2024	134.4	$	1.3	$	3,008.5	$	7,511.8		72.6	$	(7,657.6)	$	(324.8)	$	2,539.2

**(a)**Includes Class A and Class B common stock.

**(b)**Accumulated other comprehensive income (loss).


			6

RALPH LAUREN CORPORATION

CONSOLIDATED STATEMENTS OF EQUITY (Continued)

(Unaudited)


	Nine Months Ended December 27, 2025
	Common Stock(a)			Additional Paid-in Capital					Treasury Stock at Cost
		Retained Earnings						Total Equity
	Shares	Amount				Shares			Amount	AOCI(b)
	(millions)
Balance at March 29, 2025	134.4	$	1.3	$	3,031.7	$	7,590.1		72.9	$	(7,734.7)	$	(299.9)	$	2,588.5
Comprehensive income:
Net income						789.5
Other comprehensive income												64.8
Total comprehensive income														854.3
Dividends declared						(165.8)								(165.8)
Repurchases of common stock, including excise tax									1.9	(475.3)				(475.3)
Stock-based compensation				86.7										86.7
Shares issued pursuant to stock-based compensation plans	1.0	—		—										—

Balance at December 27, 2025	135.4	$	1.3	$	3,118.4	$	8,213.8		74.8	$	(8,210.0)	$	(235.1)	$	2,888.4

	Nine Months Ended December 28, 2024
	Common Stock(a)			Additional Paid-in Capital					Treasury Stock at Cost
		Retained Earnings						Total Equity
	Shares	Amount				Shares			Amount	AOCI(b)
	(millions)
Balance at March 30, 2024	133.6	$	1.3	$	2,923.8	$	7,051.6		70.3	$	(7,250.3)	$	(276.1)	$	2,450.3
Comprehensive income:
Net income						613.9
Other comprehensive loss												(48.7)
Total comprehensive income														565.2
Dividends declared						(153.7)								(153.7)
Repurchases of common stock, including excise tax									2.3	(407.3)				(407.3)
Stock-based compensation				84.7										84.7
Shares issued pursuant to stock-based compensation plans	0.8	—		—										—

Balance at December 28, 2024	134.4	$	1.3	$	3,008.5	$	7,511.8		72.6	$	(7,657.6)	$	(324.8)	$	2,539.2

**(a)**Includes Class A and Class B common stock.

**(b)**Accumulated other comprehensive income (loss).

See accompanying notes.


			7

RALPH LAUREN CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In millions, except per share data and where otherwise indicated)

(Unaudited)

1. Description of Business

Ralph Lauren Corporation ("RLC") is a global leader in the design, marketing, and distribution of luxury lifestyle products, including apparel, footwear & accessories, home, fragrances, and hospitality. RLC's long-standing reputation and distinctive image have been developed across a wide range of products, brands, distribution channels, and international markets. RLC's brand names include Ralph Lauren, Ralph Lauren Collection, Ralph Lauren Purple Label, Double RL, Polo Ralph Lauren, Lauren Ralph Lauren, Polo Ralph Lauren Children, and Chaps, among others. RLC and its subsidiaries are collectively referred to herein as the "Company," "we," "us," "our," and "ourselves," unless the context indicates otherwise.

The Company diversifies its business by geography (North America, Europe, and Asia, among other regions) and channel of distribution (retail, wholesale, and licensing). This allows the Company to maintain a dynamic balance as its operating results do not depend solely on the performance of any single geographic area or channel of distribution. The Company sells directly to consumers through its integrated retail channel, which includes its retail stores, concession-based shop-within-shops, and digital commerce operations around the world. The Company's wholesale sales are made principally to major department stores, specialty stores, and third-party digital partners around the world, as well as to certain third-party-owned stores to which the Company has licensed the right to operate in defined geographic territories using its trademarks. In addition, the Company licenses to third parties for specified periods and geographies the right to access its various trademarks in connection with the licensees' manufacture and sale of designated products, such as certain apparel categories, eyewear, fragrances, and home furnishings.

The Company organizes its business into the following three reportable segments: North America, Europe, and Asia. In addition to these reportable segments, the Company also has other non-reportable segments. See Note 16 for further discussion of the Company's segment reporting structure.

2. Basis of Presentation

Interim Financial Statements

These interim consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the "SEC") and are unaudited. In the opinion of management, these consolidated financial statements contain all normal and recurring adjustments necessary to present fairly the consolidated financial position, income (loss), comprehensive income (loss), and cash flows of the Company for the interim periods presented. In addition, certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the U.S. ("U.S. GAAP") and the notes thereto have been condensed or omitted from this report as is permitted by the SEC's rules and regulations. However, the Company believes that the disclosures provided herein are adequate to prevent the information presented from being misleading.

This report should be read in conjunction with the Company's Annual Report on Form 10-K filed with the SEC for the fiscal year ended March 29, 2025 (the "Fiscal 2025 10-K").

Basis of Consolidation

These unaudited interim consolidated financial statements present the consolidated financial position, income (loss), comprehensive income (loss), and cash flows of the Company, including all entities in which the Company has a controlling financial interest and is determined to be the primary beneficiary. All significant intercompany balances and transactions have been eliminated in consolidation.

Fiscal Periods

The Company utilizes a 52-53 week fiscal year ending on the Saturday closest to March 31. As such, fiscal year 2026 will end on March 28, 2026 and will be a 52-week period ("Fiscal 2026"). Fiscal year 2025 ended on March 29, 2025 and was


			8

RALPH LAUREN CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

also a 52-week period ("Fiscal 2025"). The third quarter of Fiscal 2026 ended on December 27, 2025 and was a 13-week period. The third quarter of Fiscal 2025 ended on December 28, 2024 and was also a 13-week period.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and notes thereto. Actual results could differ materially from those estimates.

Significant estimates inherent in the preparation of the consolidated financial statements include reserves for customer bad debt, customer returns, discounts, end-of-season markdowns, operational chargebacks, and certain cooperative advertising allowances; the realizability of inventory; reserves for litigation and other contingencies; useful lives and impairments of long-lived tangible and intangible assets; fair value measurements; accounting for income taxes and related uncertain tax positions; valuation of stock-based compensation awards and related forfeiture rates; and reserves for restructuring activity, among others.

Reclassifications

Certain reclassifications have been made to the prior periods' financial information in order to conform to the current period's presentation.

Seasonality of Business

The Company's business is typically affected by seasonal trends, with higher levels of retail sales in its second and third fiscal quarters and higher wholesale sales in its second and fourth fiscal quarters. These trends result primarily from the timing of key vacation travel, back-to-school, and holiday shopping periods impacting its retail business and the timing of seasonal wholesale shipments. As a result of changes in its business, consumer spending patterns, and the macroeconomic environment, including those resulting from pandemic diseases and other catastrophic events, historical quarterly operating trends and working capital requirements may not be indicative of the Company's future performance. In addition, fluctuations in sales, operating income (loss), and cash flows in any fiscal quarter may be affected by other events affecting retail sales, such as changes in weather patterns. Accordingly, the Company's operating results and cash flows for the three-month and nine-month periods ended December 27, 2025 are not necessarily indicative of the operating results and cash flows that may be expected for the full Fiscal 2026.

3. Summary of Significant Accounting Policies

Revenue Recognition

The Company recognizes revenue across all channels of the business when it satisfies its performance obligations by transferring control of promised products or services to its customers, which occurs either at a point in time or over time, depending on when the customer obtains the ability to direct the use of and obtain substantially all of the remaining benefits from the products or services. The amount of revenue recognized considers terms of sale that create variability in the amount of consideration that the Company ultimately expects to be entitled to in exchange for the products or services, and is subject to an overall constraint that a significant revenue reversal will not occur in future periods. Sales and other related taxes collected from customers and remitted to government authorities are excluded from revenue.

Revenue from the Company's retail business is recognized when the customer takes physical possession of the products, which occurs either at the point of sale for merchandise purchased at the Company's own retail stores and shop-within-shop locations, or upon receipt of shipment for merchandise ordered through its direct-to-consumer digital commerce sites. Such revenues are recorded net of estimated returns based on historical trends. Payment is due at the point of sale.

Gift cards purchased by customers are recorded as a liability until they are redeemed for products sold by the Company's retail business, at which point revenue is recognized. The Company also estimates and recognizes revenue for gift card balances not expected to ever be redeemed (referred to as "breakage") to the extent that it does not have a legal obligation to remit the value of such unredeemed gift cards to the relevant jurisdiction as unclaimed or abandoned property. Such estimates are based upon historical redemption trends, with breakage income recognized in proportion to the pattern of actual customer redemptions.


			9

RALPH LAUREN CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Revenue from the Company's wholesale business is generally recognized upon shipment of products, at which point title passes and risk of loss is transferred to the customer. In certain arrangements where the Company retains the risk of loss during shipment, revenue is recognized upon receipt of products by the customer. Wholesale revenue is recorded net of estimates of returns, discounts, end-of-season markdowns, operational chargebacks, and certain cooperative advertising allowances. Returns and allowances require pre-approval from management and discounts are based on trade terms. Estimates for end-of-season markdown reserves are based on historical trends, actual and forecasted seasonal results, an evaluation of current economic and market conditions, retailer performance, and, in certain cases, contractual terms. Estimates for operational chargebacks are based on actual customer notifications of order fulfillment discrepancies and historical trends. The Company reviews and refines these estimates on at least a quarterly basis. The Company's historical estimates of these amounts have not differed materially from actual results.

Revenue from the Company's licensing arrangements is recognized over time during the period that licensees are provided access to the Company's trademarks (i.e., symbolic intellectual property) and benefit from such access through their own sales of licensed products. These arrangements require licensees to pay a sales-based royalty which, for most arrangements, may be subject to a contractually-guaranteed minimum royalty amount. Payments are generally due quarterly and, depending on time of receipt, may be recorded as a liability until recognized as revenue. The Company recognizes revenue for sales-based royalty arrangements (including those for which the royalty exceeds any contractually-guaranteed minimum royalty amount) as licensed products are sold by the licensee. If a sales-based royalty is not ultimately expected to exceed a contractually-guaranteed minimum royalty amount, the minimum is generally recognized as revenue ratably over the respective contractual period. This sales-based output measure of progress and pattern of recognition best represents the value transferred to the licensee over the term of the arrangement, as well as the amount of consideration that the Company is entitled to receive in exchange for providing access to its trademarks. As of December 27, 2025, contractually-guaranteed minimum royalty amounts expected to be recognized as revenue during future periods were as follows:


	Contractually-Guaranteed Minimum Royalties(a)
	(millions)
Remainder of Fiscal 2026	$	21.6
Fiscal 2027	100.6
Fiscal 2028	74.0
Fiscal 2029	51.4
Fiscal 2030 and thereafter	40.6
Total	$	288.2

**(a)**Amounts presented do not contemplate potential contract renewals or royalties earned in excess of contractually-guaranteed minimums.

Disaggregated Net Revenues

The following tables disaggregate the Company's net revenues into categories that depict how the nature, amount, timing, and uncertainty of revenues and cash flows are affected by economic factors for the fiscal periods presented:


	Three Months Ended
	December 27, 2025										December 28, 2024
	North America		Europe		Asia		Other		Total		North America		Europe		Asia		Other		Total
	(millions)
Sales Channel(a):
Retail	$	796.2	$	379.0	$	601.8	$	—	$	1,777.0	$	743.6	$	347.7	$	490.5	$	—	$	1,581.8
Wholesale	282.1		297.5		18.5		—		598.1		254.1		256.7		16.2		—		527.0
Licensing	—		—		—		30.9		30.9		—		—		—		34.7		34.7
Total	$	1,078.3	$	676.5	$	620.3	$	30.9	$	2,406.0	$	997.7	$	604.4	$	506.7	$	34.7	$	2,143.5


			10

RALPH LAUREN CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)


	Nine Months Ended
	December 27, 2025										December 28, 2024
	North America		Europe		Asia		Other		Total		North America		Europe		Asia		Other		Total
	(millions)
Sales Channel(a):
Retail	$	1,781.0	$	984.8	$	1,476.9	$	—	$	4,242.7	$	1,627.6	$	865.7	$	1,217.5	$	—	$	3,710.8
Wholesale	785.9		934.5		63.0		—		1,783.4		717.8		783.7		60.3		—		1,561.8
Licensing	—		—		—		109.7		109.7		—		—		—		109.1		109.1
Total	$	2,566.9	$	1,919.3	$	1,539.9	$	109.7	$	6,135.8	$	2,345.4	$	1,649.4	$	1,277.8	$	109.1	$	5,381.7

**(a)**Net revenues from the Company's retail and wholesale businesses are recognized at a point in time. Net revenues from the Company's licensing business are recognized over time.

Deferred Income

Deferred income represents cash payments received in advance of the Company's transfer of control of products or services to its customers and generally consists of unredeemed gift cards (net of estimated breakage) and advance royalty payments received from its licensees. The Company's deferred income balances were $27.7 million and $16.7 million as of December 27, 2025 and March 29, 2025, respectively, and were primarily recorded within accrued expenses and other current liabilities within the consolidated balance sheets. The majority of the deferred income balance as of December 27, 2025 is expected to be recognized as revenue within the next twelve months.

Shipping and Handling Costs

Costs associated with shipping goods to customers are accounted for as fulfillment activities and reflected as selling, general, and administrative ("SG&A") expenses in the consolidated statements of operations. Costs associated with preparing merchandise for sale, such as picking, packing, warehousing, and order charges ("handling costs"), are also included in SG&A expenses. Shipping and handling costs billed to customers are included in revenue.

A summary of shipping and handling costs for the fiscal periods presented is as follows:


	Three Months Ended				Nine Months Ended
	December 27, 2025		December 28, 2024		December 27, 2025		December 28, 2024
	(millions)
Shipping costs	$	34.0	$	31.4	$	77.2	$	69.6
Handling costs	51.2		49.1		137.7		124.7

Net Income per Common Share

Basic net income per common share is computed by dividing net income attributable to common shares by the weighted-average number of common shares outstanding during the period. Weighted-average common shares include shares of the Company's Class A and Class B common stock. Diluted net income per common share adjusts basic net income per common share for the dilutive effects of outstanding restricted stock units ("RSUs") and any other potentially dilutive instruments and stock-based compensation awards using the treasury stock method, only for periods in which such effects are dilutive.


			11

RALPH LAUREN CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The weighted-average number of common shares outstanding used to calculate basic net income per common share is reconciled to shares used to calculate diluted net income per common share as follows:


	Three Months Ended		Nine Months Ended
	December 27, 2025	December 28, 2024	December 27, 2025	December 28, 2024
	(millions)
Basic shares	61.1	62.5	61.1	62.8
Dilutive effect of RSUs	1.1	1.3	1.3	1.3
Diluted shares	62.2	63.8	62.4	64.1

All earnings per share amounts have been calculated using unrounded numbers. The Company has outstanding performance-based RSUs, which are included in the computation of diluted shares only to the extent that the underlying performance conditions (i) have been satisfied as of the end of the reporting period or (ii) would be considered satisfied if the end of the reporting period were the end of the related contingency period and the result would be dilutive. As of December 27, 2025 and December 28, 2024, there were 0.1 million and 0.2 million, respectively, of additional shares issuable contingent upon vesting of performance-based RSUs that were excluded from the diluted shares calculations.

Accounts Receivable

In the normal course of business, the Company extends credit to wholesale customers that satisfy certain defined credit criteria. Payment is generally due within 30 to 120 days and does not involve a significant financing component. Accounts receivable are recorded at amortized cost, which approximates fair value, and are presented in the consolidated balance sheets net of certain reserves and allowances. These reserves and allowances consist of (i) reserves for returns, discounts, end-of-season markdowns, operational chargebacks, and certain cooperative advertising allowances (see the "Revenue Recognition" section above for further discussion of related accounting policies) and (ii) allowances for doubtful accounts.

A rollforward of activity in the Company's reserves for returns, discounts, end-of-season markdowns, operational chargebacks, and certain cooperative advertising allowances is presented as follows:


	Three Months Ended				Nine Months Ended
	December 27, 2025		December 28, 2024		December 27, 2025		December 28, 2024
	(millions)
Beginning reserve balance	$	177.0	$	156.3	$	147.6	$	143.1
Amount charged against revenue to increase reserve	130.1		114.6		382.0		337.6
Amount credited against customer accounts to decrease reserve	(138.4)		(124.9)		(366.4)		(337.8)
Foreign currency translation	0.5		(6.3)		6.0		(3.2)
Ending reserve balance	$	169.2	$	139.7	$	169.2	$	139.7

An allowance for doubtful accounts is determined through analysis of accounts receivable aging, assessments of collectability based on evaluation of historical trends, the financial condition of the Company's customers and their ability to withstand prolonged periods of adverse economic conditions, and evaluation of the impact of current and forecasted economic and market conditions over the related asset's contractual life, among other factors.


			12

RALPH LAUREN CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

A rollforward of activity in the Company's allowance for doubtful accounts is presented as follows:


	Three Months Ended				Nine Months Ended
	December 27, 2025		December 28, 2024		December 27, 2025		December 28, 2024
	(millions)
Beginning reserve balance	$	43.6	$	34.2	$	38.7	$	32.2
Amount recorded to expense to increase reserve(a)	1.2		0.6		6.7		2.7
Amount written-off against customer accounts to decrease reserve	(6.7)		(0.7)		(8.4)		(1.5)
Foreign currency translation	0.4		(1.2)		1.5		(0.5)
Ending reserve balance	$	38.5	$	32.9	$	38.5	$	32.9

**(a)**Amounts recorded to bad debt expense are included within SG&A expenses in the consolidated statements of operations.

Concentration of Credit Risk

The Company sells its wholesale merchandise primarily to major department stores, specialty stores, and third-party digital partners around the world, and extends credit based on an evaluation of each customer's financial capacity and condition, usually without requiring collateral. In the Company's wholesale business, concentration of credit risk is relatively limited due to the large number of customers and their dispersion across many geographic areas. However, the Company has three key wholesale customers that generate significant sales volume. During Fiscal 2025, the Company's sales to these three customers accounted for approximately 12% of total net revenues. Approximately 70% of sales to the Company's three largest wholesale customers related to its North America segment and approximately 30% related to its Europe segment. As of December 27, 2025, these three wholesale customers accounted for approximately 22% of total gross accounts receivable.

Inventories

The Company holds inventory that is sold in its retail stores and digital commerce sites directly to consumers. The Company also holds inventory that is to be sold through wholesale distribution channels to major department stores, specialty stores, and third-party digital partners. Substantially all of the Company's inventories consist of finished goods, which are stated at the lower of cost or estimated realizable value, with cost determined on a weighted-average cost basis. Inventories held by the Company totaled $1.149 billion, $949.6 million, and $998.6 million as of December 27, 2025, March 29, 2025, and December 28, 2024, respectively.

Supplier Finance Program

The Company supports a voluntary supplier finance program which provides certain of its inventory suppliers the opportunity, at their sole discretion, to sell their receivables due from the Company (which generally have 90-day payment terms) to a participating financial institution for a discounted payment amount made earlier than the payment terms stipulated between the Company and the supplier. The Company's vendor payment terms and amounts due are not impacted by a supplier's decision to participate in the program. The Company has not pledged any assets and does not provide guarantees under the supplier finance program. The Company's payment obligations outstanding under its supplier finance program were $230.7 million and $181.0 million as of December 27, 2025 and March 29, 2025, respectively, and were recorded within accounts payable in the consolidated balance sheets.

Derivative Financial Instruments

The Company records derivative financial instruments on its consolidated balance sheets at fair value. Changes in the fair value of derivative instruments that are designated and qualify for hedge accounting are either (i) offset through earnings against the changes in fair value of the related hedged assets, liabilities, or firm commitments or (ii) recognized in equity as a component of accumulated other comprehensive income (loss) ("AOCI") until the hedged item is recognized in earnings, depending on whether the instrument is hedging against changes in fair value or cash flows and net investments, respectively.


			13

RALPH LAUREN CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Each derivative instrument that qualifies for hedge accounting is expected to be highly effective in offsetting the risk associated with the related exposure. For each instrument that is designated as a hedge, the Company documents the related risk management objective and strategy, including identification of the hedging instrument, the hedged item, and the risk exposure, as well as how hedge effectiveness will be assessed over the instrument's term. To assess hedge effectiveness at the inception of a hedging relationship, the Company generally uses regression analysis, a statistical method, to evaluate how changes in the fair value of the derivative instrument are expected to offset changes in the fair value or cash flows of the related hedged item. The extent to which a hedging instrument has been and is expected to remain highly effective in achieving offsetting changes in fair value or cash flows is assessed by the Company on at least a quarterly basis.

Given its use of derivative instruments, the Company is exposed to the risk that counterparties to such contracts will fail to meet their contractual obligations. To mitigate such counterparty credit risk, the Company's policy is to only enter into contracts with carefully selected financial institutions based upon an evaluation of their credit ratings and certain other factors, adhering to established limits for credit exposure. The Company's established policies and procedures for mitigating credit risk include ongoing review and assessment of its counterparties' creditworthiness. The Company also enters into master netting arrangements with counterparties, when possible, to further mitigate credit risk. In the event of default or termination, these arrangements allow the Company to net-settle amounts payable and receivable related to multiple derivative transactions with the same counterparty. The master netting arrangements specify a number of events of default and termination, including the failure to make timely payments.

The fair values of the Company's derivative instruments are recorded on its consolidated balance sheets on a gross basis. For cash flow reporting purposes, proceeds received or amounts paid upon the settlement of a derivative instrument are classified in the same manner as the related item being hedged, primarily within cash flows from operating activities for its forward foreign exchange contracts and within cash flows from investing activities for its cross-currency swap contracts, both as discussed below.

Cash Flow Hedges

The Company uses forward foreign currency exchange contracts to mitigate its risk related to exchange rate fluctuations on inventory transactions made in an entity's non-functional currency. To the extent designated as cash flow hedges, related gains or losses on such instruments are initially deferred in equity as a component of AOCI and are subsequently recognized within cost of goods sold in the consolidated statements of operations when the related inventory is sold.

If a derivative instrument is dedesignated or if hedge accounting is discontinued because the instrument is not expected to be highly effective in hedging the designated exposure, any further gains (losses) are recognized in earnings each period within other income (expense), net. Upon discontinuance of hedge accounting, the cumulative change in fair value of the derivative instrument recorded in AOCI is recognized in earnings when the related hedged item affects earnings, consistent with the hedging strategy, unless the related forecasted transaction is probable of not occurring, in which case the accumulated amount is immediately recognized within other income (expense), net.

Hedges of Net Investments in Foreign Operations

The Company periodically uses cross-currency swap contracts to reduce risk associated with exchange rate fluctuations on certain of its net investments in foreign subsidiaries. Changes in the fair values of such derivative instruments that are designated as hedges of net investments in foreign operations are recorded in equity as a component of AOCI in the same manner as foreign currency translation adjustments. In assessing the effectiveness of such hedges, the Company uses a method based on changes in spot rates to measure the impact of foreign currency exchange rate fluctuations on both its foreign subsidiary net investment and the related hedging instrument. Under this method, changes in the fair value of the hedging instrument other than those due to changes in the spot rate are initially recorded in AOCI as a translation adjustment and are amortized into earnings as interest expense using a systematic and rational method over the instrument's term. Changes in fair value associated with the effective portion (i.e., those due to changes in the spot rate) are recorded in AOCI as a translation adjustment and are released and recognized in earnings only upon the sale or liquidation of the hedged net investment.


			14

RALPH LAUREN CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Undesignated Hedges

The Company uses undesignated hedges primarily to hedge foreign currency exchange rate risk related to third-party and intercompany balances and exposures. Changes in the fair values of such instruments are recognized in earnings each period within other income (expense), net.

See Note 11 for further discussion of the Company's derivative financial instruments.

Refer to Note 3 of the Fiscal 2025 10-K for a summary of all of the Company's significant accounting policies.

4. Recently Issued Accounting Standards

Accounting for and Disclosure of Software Costs

In September 2025, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2025-06, "Targeted Improvements to the Accounting for Internal-Use Software" ("ASU 2025-06"). Among its provisions, ASU 2025-06 modernizes and clarifies the threshold for when an entity is required to start capitalizing internal-use software costs, which occurs when (i) management has authorized and committed to funding a software project and (ii) it is probable that the project will be completed and the software will be used to perform the function intended. The guidance in ASU 2025-06, which can be applied prospectively, retrospectively, or via a modified transition approach, becomes effective for the Company beginning in its fiscal year ending March 31, 2029 ("Fiscal 2029"), with early adoption permitted. The Company is evaluating the impact that the guidance will have on its consolidated financial statements and related disclosures.

Disaggregation of Income Statement Expenses

In November 2024, the FASB issued ASU No. 2024-03, "Disaggregation of Income Statement Expenses" ("ASU 2024-03"). ASU 2024-03 requires interim and annual tabular disclosure of disaggregated information for certain income statement expense captions. Specific expense categories required to be disclosed quantitatively include inventory purchases, employee compensation, depreciation, and intangible asset amortization, as well as other specified expense categories currently disclosed under existing disclosure requirements. Any remaining amounts that are not separately disaggregated are required to be described qualitatively. ASU 2024-03 also requires separate disclosure of total selling expenses incurred each reporting period, with annual disclosure of the entity's definition of selling expenses. The annual disclosures required by ASU 2024-03 are effective for the Company beginning in its fiscal year ending April 1, 2028 ("Fiscal 2028"), with interim disclosures effective beginning in Fiscal 2029. The provisions of ASU 2024-03 are to be applied prospectively, although retrospective application is permitted. Early adoption is also permitted. Other than the new disclosure requirements, ASU 2024-03 will not have an impact on the Company's consolidated financial statements.

Improvements to Income Tax Disclosures

In December 2023, the FASB issued ASU No. 2023-09, "Improvements to Income Tax Disclosures" ("ASU 2023-09"). ASU 2023-09 is intended to enhance the transparency and usefulness of annual income tax disclosures. Among its provisions, ASU 2023-09 requires disclosure of a reconciliation between an entity's effective tax rate, which is calculated by dividing each fiscal period's income tax provision by pretax income, and its statutory rate utilizing eight specific categories, along with a separate disclosure for reconciling items that meet a 5% quantitative threshold. In addition, ASU 2023-09 requires disclosure of income taxes paid (net of refunds received), disaggregated by federal, state, and foreign taxes, as well as by individual jurisdictions if a 5% quantitative threshold is met. ASU 2023-09 is effective for the Company for annual periods beginning in Fiscal 2026, and is to be applied prospectively, although retrospective application is permitted. Early adoption is also permitted. Other than the new disclosure requirements, ASU 2023-09 will not have an impact on the Company's consolidated financial statements.


			15

RALPH LAUREN CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

5. Property and Equipment

Property and equipment, net consists of the following:


	December 27, 2025		March 29, 2025
	(millions)
Land and improvements	$	56.7	$	15.3
Buildings and improvements	545.8		416.9
Furniture and fixtures	687.0		643.7
Machinery and equipment	440.9		405.8
Capitalized software	577.9		556.8
Leasehold improvements	1,440.4		1,308.6
Construction in progress	85.6		91.1
	3,834.3		3,438.2
Less: accumulated depreciation	(2,762.9)		(2,591.8)
Property and equipment, net	$	1,071.4	$	846.4

Property and equipment, net includes finance lease right-of-use ("ROU") assets, which are reflected in the table above based on their nature.

Depreciation expense was $57.2 million and $164.0 million during the three-month and nine-month periods ended December 27, 2025, respectively, and $51.0 million and $154.8 million during the three-month and nine-month periods ended December 28, 2024, respectively, and was recorded primarily within SG&A expenses in the consolidated statements of operations.

6. Other Assets and Liabilities

Prepaid expenses and other current assets consist of the following:


	December 27, 2025		March 29, 2025
	(millions)

Tenant allowances receivables	$	50.8	$	46.7
Prepaid information technology subscriptions and maintenance	34.1		19.3
Prepaid marketing and advertising	31.8		21.7
Other taxes receivable	27.1		26.7
Inventory return asset	23.4		13.4
Non-trade receivables	17.7		24.0
Cloud computing arrangement implementation costs	12.6		10.1
Prepaid occupancy expenses	12.4		11.5
Prepaid logistic services	7.9		6.5
Prepaid insurance	7.1		3.9
Derivative financial instruments	2.3		30.9
Restricted cash	2.1		1.4
Other prepaid expenses and current assets	30.0		26.3
Total prepaid expenses and other current assets	$	259.3	$	242.4


			16

RALPH LAUREN CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Other non-current assets consist of the following:


	December 27, 2025		March 29, 2025
	(millions)
Security deposits	$	46.8	$	37.7

Cloud computing arrangement implementation costs	24.0		16.1
Restricted cash	5.4		5.5
Deferred rent assets	5.1		2.2
Equity method and other investments	4.6		3.1
Deposit for purchase of real estate	—		16.8

Other non-current assets	34.0		29.8
Total other non-current assets	$	119.9	$	111.2

Accrued expenses and other current liabilities consist of the following:


	December 27, 2025		March 29, 2025
	(millions)
Accrued payroll and benefits	$	292.6	$	307.4
Accrued operating expenses	281.2		190.1
Accrued inventory liability	185.5		122.2
Accrued marketing and advertising	110.3		76.4
Other taxes payable	94.1		78.5
Dividends payable	55.2		50.7
Accrued capital expenditures	33.2		31.0

Deferred income	27.6		16.6
Restructuring liability	22.1		15.5
Finance lease obligations	20.5		20.6
Derivative financial instruments	6.8		7.7
Other accrued expenses and current liabilities	2.9		9.4
Total accrued expenses and other current liabilities	$	1,132.0	$	926.1

Other non-current liabilities consist of the following:


	December 27, 2025		March 29, 2025
	(millions)
Asset retirement obligations	$	42.7	$	38.5
Derivative financial instruments	33.7		2.4
Deferred lease incentives and obligations	28.3		33.5
Accrued benefits and deferred compensation	27.3		22.5
Deferred tax liabilities	8.0		5.9
Restructuring liability	4.8		3.8
Other non-current liabilities	3.8		2.8
Total other non-current liabilities	$	148.6	$	109.4


			17

RALPH LAUREN CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

7. Restructuring and Other Charges, Net

A description of significant restructuring and other activities and their related costs is provided below.

Fiscal 2026 Restructuring Activities

During the three-month and nine-month periods ended December 27, 2025, the Company recorded $6.5 million and $22.4 million, respectively, of cash-related restructuring charges, primarily associated with severance and benefit costs. As of December 27, 2025, the remaining liability related to these cash-related charges was $19.3 million, reflecting cash payments of $3.1 million made during the nine months ended December 27, 2025.

Fiscal 2025 Restructuring Activities

The Company recorded cash-related restructuring benefits of $0.2 million during the three months ended December 28, 2024 and cash-related restructuring charges of $10.5 million during the nine months ended December 28, 2024, primarily associated with severance and benefit costs. The Company also recorded non-cash-related charges, net of $1.8 million and $3.4 million during the three-month and nine-month periods ended December 28, 2024, respectively, primarily related to stock-based compensation expense recorded in connection with an employment separation agreement. During Fiscal 2025, the Company recorded cumulative restructuring-related charges of $20.4 million, comprised of cash-related restructuring charges of $15.5 million, primarily associated with severance and benefit costs, and non-cash-related charges of $4.9 million, primarily related to stock-based compensation expense recorded in connection with an employment separation agreement. As of December 27, 2025 and March 29, 2025, the remaining liability related to these cash-related charges was $4.6 million and $10.9 million, respectively, reflecting cash payments of $6.6 million and non-cash adjustments of $0.3 million made during the nine months ended December 27, 2025.

Other Restructuring Activities

During the three-month and nine-month periods ended December 27, 2025, the Company recognized $0.5 million and $1.8 million, respectively, of income within restructuring and other charges, net in the consolidated statements of operations related to cash consideration received from Regent, L.P. in connection with the Company's previously sold Club Monaco business. Refer to Note 9 of the Fiscal 2025 10-K for additional discussion regarding the Company's sale of its former Club Monaco business. On a comparative basis, during the three-month and nine-month periods ended December 28, 2024, the Company recognized $0.7 million and $2.1 million, respectively, of income within restructuring and other charges, net in the consolidated statements of operations related to consideration received from Regent, L.P. in connection with the Company's previously sold Club Monaco business.

As of December 27, 2025 and March 29, 2025, the remaining liability related to the Company's restructuring plans initiated prior to its Fiscal 2025 was $3.0 million and $8.4 million, respectively, reflecting cash payments of $5.6 million and non-cash adjustments of $0.2 million made during the nine months ended December 27, 2025.

Other Charges

Next Generation Transformation Project

During Fiscal 2025, the Company began a large-scale, multi-year global project that is expected to significantly transform the way in which it operates its business and further enable its long-term strategic pivot towards a global direct-to-consumer-oriented model (the "Next Generation Transformation project" or "NGT project"). The NGT project is being completed in phases and involves the redesign of certain end-to-end processes and the implementation of a suite of technology systems on a global scale. Such efforts are expected to result in significant process improvements and the creation of synergies across core areas of operations, including merchandise buying and planning, procurement, inventory management, retail and wholesale operations, and financial planning and reporting, better enabling the Company to optimize inventory levels and increase the speed with which it reacts to changes in consumer demand across markets, among other benefits. In connection with the current phase of the NGT project, the Company recorded other charges of $25.0 million and $61.7 million during the three-month and nine-month periods ended December 27, 2025, respectively, and $9.1 million and $17.1 million, during the three-month and nine-month periods ended December 28, 2024, respectively.


			18

RALPH LAUREN CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Previously Exited Real Estate

The Company recorded other charges of $0.8 million and $6.1 million during the three-month and nine-month periods ended December 27, 2025, respectively, and $2.2 million and $9.1 million during the three-month and nine-month periods ended December 28, 2024, respectively, related to rent and occupancy costs associated with certain real estate locations previously exited in connection with the Company's past restructuring activities for which the related lease agreements have not yet expired.

8. Income Taxes

U.S. Tax Reform

On July 4, 2025, President Trump signed into law new tax legislation commonly referred to as the One Big Beautiful Bill Act ("OBBBA"), which includes various provisions, including the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act of 2017, modifications to the international tax framework, and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective for the Company in Fiscal 2026. The Company is currently evaluating the future impact of these tax law changes on its consolidated financial statements; however, it does not expect a material impact for the current fiscal year.

Effective Tax Rate

The Company's effective tax rate, which is calculated by dividing each fiscal period's income tax provision by pretax income, was 22.0% and 19.8% during the three-month and nine-month periods ended December 27, 2025, respectively, and 22.5% and 22.1% during the three-month and nine-month periods ended December 28, 2024, respectively. The effective tax rate for the three months ended December 27, 2025 was higher than the U.S. federal statutory income tax rate of 21% primarily due to state taxes, permanent adjustments and uncertain tax position adjustments, partially offset by the favorable tax impact of the foreign-derived intangible income deduction and prior year return-to-provision benefits. The effective tax rate for the nine months ended December 27, 2025 was lower than the U.S. federal statutory income tax rate of 21% primarily due to favorable tax impacts of the foreign-derived intangible income deduction and tax impacts of compensation-related adjustments, as well as prior year return-to-provision benefits, partially offset by state taxes and permanent adjustments. The effective tax rates for the three-month and nine-month periods ended December 28, 2024 were higher than the U.S. federal statutory income tax rate of 21% primarily due to uncertain tax positions and state taxes, partially offset by a favorable tax adjustment related to the revaluation of a deferred tax liability on foreign earnings.

Uncertain Income Tax Benefits

The Company classifies interest and penalties related to unrecognized tax benefits as part of its income tax provision. The total amount of unrecognized tax benefits, including interest and penalties, was $169.2 million and $193.3 million as of December 27, 2025 and March 29, 2025, respectively, and was included within the non-current liability for unrecognized tax benefits in the consolidated balance sheets.

The total amount of unrecognized tax benefits that, if recognized, would affect the Company's effective tax rate was $104.3 million and $101.6 million as of December 27, 2025 and March 29, 2025, respectively.

Future Changes in Unrecognized Tax Benefits

The total amount of unrecognized tax benefits relating to the Company's tax positions is subject to change based on future events including, but not limited to, settlements of ongoing tax audits and assessments and the expiration of applicable statutes of limitations. Although the outcomes and timing of such events are highly uncertain, the Company does not anticipate that the balance of gross unrecognized tax benefits, excluding interest and penalties, will change significantly during the next twelve months. However, changes in the occurrence, expected outcomes, and timing of such events could cause the Company's current estimate to change materially in the future.

The Company files a consolidated U.S. federal income tax return, as well as tax returns in various state, local, and foreign jurisdictions. The Company is generally no longer subject to examinations by the relevant tax authorities for years prior to its fiscal year ended March 28, 2015.


			19

RALPH LAUREN CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

9. Debt

Debt consists of the following:


	December 27, 2025		March 29, 2025
	(millions)
$400 million 3.750% Senior Notes(a)	$	—	$	399.7
$750 million 2.950% Senior Notes(b)	743.9		742.9
$500 million 5.000% Senior Notes(c)	494.4		—
Total debt	1,238.3		1,142.6
Less: current portion of long-term debt	—		399.7
Total long-term debt	$	1,238.3	$	742.9

**(a)**The carrying value of the 3.750% Senior Notes is presented net of unamortized debt issuance costs and original issue discount of $0.3 million as of March 29, 2025.

**(b)**The carrying value of the 2.950% Senior Notes is presented net of unamortized debt issuance costs and original issue discount of $6.1 million and $7.1 million as of December 27, 2025 and March 29, 2025, respectively.

**(c)**The carrying value of the 5.000% Senior Notes is presented net of unamortized debt issuance costs and original issue discount of $5.6 million as of December 27, 2025.

Senior Notes

In August 2018, the Company completed a registered public debt offering and issued a $400 million aggregate principal amount of unsecured senior notes that were due and repaid on September 15, 2025 with cash on hand, which bore interest at a fixed rate of 3.750%, payable semi-annually (the "3.750% Senior Notes"). The 3.750% Senior Notes were issued at a price equal to 99.521% of their principal amount. The proceeds from this offering were used for general corporate purposes, including repayment of the Company's previously outstanding $300 million principal amount of 2.125% unsecured senior notes that matured on September 26, 2018.

In June 2020, the Company completed another registered public debt offering and issued a $500 million aggregate principal amount of unsecured senior notes that were due and repaid on June 15, 2022 with cash on hand, which bore interest at a fixed rate of 1.700%, payable semi-annually (the "1.700% Senior Notes"), and a $750 million aggregate principal amount of unsecured senior notes due June 15, 2030, which bear interest at a fixed rate of 2.950%, payable semi-annually (the "2.950% Senior Notes"). The 1.700% Senior Notes and 2.950% Senior Notes were issued at prices equal to 99.880% and 98.995% of their principal amounts, respectively. The proceeds from these offerings were used for general corporate purposes, which included the repayment of $475 million previously outstanding under the Company's Global Credit Facility (as defined below) on June 3, 2020 and repayment of its previously outstanding $300 million principal amount of 2.625% unsecured senior notes that matured on August 18, 2020.

In June 2025, the Company completed another registered public debt offering and issued a $500 million aggregate principal amount of unsecured senior notes due June 15, 2032, which bear interest at a fixed rate of 5.000%, payable semi-annually (the "5.000% Senior Notes"). The 5.000% Senior Notes were issued at a price equal to 99.647% of their principal amount. The proceeds from this offering are being used for general corporate purposes, which included the repayment of the Company's previously outstanding $400 million principal amount of 3.750% Senior Notes that matured on September 15, 2025, as discussed above.

The Company has the option to redeem the 2.950% Senior Notes and 5.000% Senior Notes (collectively, the "Senior Notes"), in whole or in part, at any time at a price equal to accrued and unpaid interest on the redemption date plus the greater of (i) 100% of the principal amount of the series of Senior Notes to be redeemed or (ii) the sum of the present value of remaining scheduled payments or principal and interest as set forth in the supplemental indenture governing such Senior Notes (together with the indenture governing the Senior Notes, the "Indenture"). The Indenture contains certain covenants that restrict the Company's ability, subject to specified exceptions, to incur certain liens; enter into sale and leaseback transactions;


			20

RALPH LAUREN CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

consolidate or merge with another party; or sell, lease, or convey all or substantially all of the Company's property or assets to another party. However, the Indenture does not contain any financial covenants.

Commercial Paper

The Company has a commercial paper borrowing program that allows it to issue up to $750 million of unsecured commercial paper notes through private placement using third-party broker-dealers (the "Commercial Paper Program").

Borrowings under the Commercial Paper Program are supported by the Global Credit Facility (as defined below). Combined borrowings under the Commercial Paper Program and the Global Credit Facility are limited to $750 million. Commercial Paper Program borrowings may be used to support the Company's general working capital and corporate needs. Commercial paper notes have maturities of up to 397 days from the date of issuance and rank equally in seniority with the Company's other forms of unsecured indebtedness. As of both December 27, 2025 and March 29, 2025, there were no borrowings outstanding under the Commercial Paper Program.

Revolving Credit Facilities

Global Credit Facility

In June 2023, the Company terminated its then existing revolving credit facility and entered into a new credit facility that provides for a $750 million senior unsecured revolving line of credit through June 30, 2028 (the "Global Credit Facility") under terms and conditions substantially similar to those of the previous facility. The Global Credit Facility is available for working capital needs, capital expenditures, certain investments, general corporate purposes, and for funding acquisitions. The Global Credit Facility may also be used to support the issuance of letters of credit and maintenance of the Commercial Paper Program. Borrowings under the Global Credit Facility may be denominated in U.S. Dollars and certain other currencies, including Euros, Hong Kong Dollars, and Japanese Yen, and are guaranteed by some of the Company's domestic subsidiaries, including all of the Company's significant subsidiaries. The terms of the agreement governing the Global Credit Facility provide the Company the ability to expand its borrowing availability to $1.500 billion, subject to the agreement of one or more new or existing lenders under the facility to increase their commitments. There are no mandatory reductions in borrowing ability throughout the term of the Global Credit Facility. As of both December 27, 2025 and March 29, 2025, there were no borrowings outstanding under the Global Credit Facility. However, the Company was contingently liable for $10.4 million and $10.6 million of outstanding letters of credit as of December 27, 2025 and March 29, 2025, respectively.

The Global Credit Facility contains a number of covenants that, among other things, restrict the Company's ability, subject to specified exceptions, to incur additional indebtedness; incur liens; sell or dispose of assets; merge with or acquire other companies; liquidate or dissolve itself; engage in unrelated lines of business; make loans, advances, or guarantees; engage in transactions with affiliates; and make certain investments. The Global Credit Facility also requires the Company to maintain a maximum ratio of Adjusted Debt to Consolidated EBITDAR (the "leverage ratio") of no greater than 4.25 as of the date of measurement for the four most recent consecutive fiscal quarters. Adjusted Debt is defined generally as consolidated debt outstanding, including finance lease obligations, plus all operating lease obligations. Consolidated EBITDAR is defined generally as consolidated net income plus (i) income tax expense, (ii) net interest expense, (iii) depreciation and amortization expense, (iv) operating lease cost, (v) restructuring and other non-recurring expenses, and (vi) acquisition-related costs. As of December 27, 2025, no Event of Default (as such term is defined pursuant to the Global Credit Facility) has occurred under the Company's Global Credit Facility.

Pan-Asia Borrowing Facilities

Certain of the Company's subsidiaries in Asia maintain uncommitted credit facilities with regional branches of JPMorgan Chase in China and South Korea (collectively, the "Pan-Asia Credit Facilities"). Additionally, the Company's Japan subsidiary maintains an uncommitted overdraft facility with Sumitomo Mitsui Banking Corporation (the "Japan Overdraft Facility"). The Pan-Asia Credit Facilities and the Japan Overdraft Facility (collectively, the "Pan-Asia Borrowing Facilities") are subject to annual renewal and may be used to fund general working capital needs of the Company's operations in their respective countries. Borrowings under the Pan-Asia Borrowing Facilities are guaranteed by the parent company and are granted at the sole discretion of the respective bank lenders, subject to availability of the banks' funds and satisfaction of certain regulatory requirements. The Pan-Asia Borrowing Facilities do not contain any financial covenants.


			21

RALPH LAUREN CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

A summary of the Company's Pan-Asia Borrowing Facilities by country is as follows:

China Credit Facility — provides Ralph Lauren Trading (Shanghai) Co., Ltd. with a revolving line of credit of up to 100 million Chinese Renminbi (approximately $13 million) through April 3, 2026, which also may be used to support bank guarantees.
South Korea Credit Facility — provides Ralph Lauren (Korea) Ltd. with a revolving line of credit of up to 30 billion South Korean Won (approximately $21 million) through October 24, 2026.
Japan Overdraft Facility — provides Ralph Lauren Corporation Japan with an overdraft amount of up to 5 billion Japanese Yen (approximately $32 million) through April 30, 2026.

As of both December 27, 2025 and March 29, 2025, there were no borrowings outstanding under the Pan-Asia Borrowing Facilities.

Refer to Note 11 of the Fiscal 2025 10-K for additional discussion of the terms and conditions of the Company's debt and credit facilities.

10. Fair Value Measurements

U.S. GAAP prescribes a three-level valuation hierarchy for disclosure of fair value measurements. The determination of the applicable level within the hierarchy for a particular asset or liability depends on the inputs used in its valuation as of the measurement date, notably the extent to which the inputs are market-based (observable) or internally-derived (unobservable). A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels are defined as follows:

Level 1 — inputs to the valuation methodology based on quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2 — inputs to the valuation methodology based on quoted prices for similar assets or liabilities in active markets for substantially the full term of the financial instrument; quoted prices for identical or similar instruments in markets that are not active for substantially the full term of the financial instrument; and model-derived valuations whose inputs or significant value drivers are observable.
Level 3 — inputs to the valuation methodology based on unobservable prices or valuation techniques that are significant to the fair value measurement.

The following table summarizes the Company's financial assets and liabilities that are measured and recorded at fair value on a recurring basis, excluding accrued interest components:


	December 27, 2025		March 29, 2025
	(millions)
Derivative assets(a)	$	2.3	$	30.9
Derivative liabilities(a)	40.5		10.1

**(a)**Based on Level 2 measurements.

The Company's derivative financial instruments are recorded at fair value in its consolidated balance sheets and are valued using pricing models that are primarily based on market observable external inputs, including spot and forward currency exchange rates, benchmark interest rates, and discount rates consistent with the instrument's tenor, and consider the impact of the Company's own credit risk, if any. Changes in counterparty credit risk are also considered in the valuation of derivative financial instruments.


			22

RALPH LAUREN CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

To the extent the Company invests in commercial paper, such investments are classified as available-for-sale and recorded at fair value in its consolidated balance sheets using external pricing data, based on interest rates and credit ratings for similar issuances with the same remaining term as the Company's investments. To the extent the Company invests in bonds, such investments are also classified as available-for-sale and recorded at fair value in its consolidated balance sheets based on quoted prices in active markets.

The Company's cash and cash equivalents, restricted cash, and time deposits are recorded at carrying value, which generally approximates fair value based on Level 1 measurements.

The Company's debt instruments are recorded at their amortized cost in its consolidated balance sheets, which may differ from their respective fair values. The fair values of the Company's senior notes are estimated based on external pricing data, including available quoted market prices, and with reference to comparable debt instruments with similar interest rates, credit ratings, and trading frequency, among other factors. The fair values of the Company's commercial paper notes and borrowings outstanding under its credit facilities, if any, are estimated using external pricing data, based on interest rates and credit ratings for similar issuances with the same remaining term as the Company's outstanding borrowings. Due to their short-term nature, the fair values of the Company's commercial paper notes and borrowings outstanding under its credit facilities, if any, generally approximate their amortized cost carrying values.

The following table summarizes the carrying values and the estimated fair values of the Company's debt instruments:


	December 27, 2025				March 29, 2025
	Carrying Value(a)		Fair Value(b)		Carrying Value(a)		Fair Value(b)
	(millions)
$400 million 3.750% Senior Notes	$	—	$	—	$	399.7	$	398.4
$750 million 2.950% Senior Notes	743.9		712.8		742.9		690.8
$500 million 5.000% Senior Notes	494.4		514.7		—		—

**(a)**See Note 9 for discussion of the carrying values of the Company's senior notes.

**(b)**Based on Level 2 measurements.

Unrealized gains or losses resulting from changes in the fair value of the Company's debt instruments do not result in the realization or expenditure of cash unless the debt is retired prior to its maturity.

Non-financial Assets and Liabilities

The Company's non-financial assets, which primarily consist of goodwill, other intangible assets, property and equipment, and lease-related ROU assets, are not required to be measured at fair value on a recurring basis, and instead are reported at their amortized or depreciated cost in its consolidated balance sheet. However, on a periodic basis or whenever events or changes in circumstances indicate that they may not be fully recoverable (and at least annually for goodwill and indefinite-lived intangible assets), the respective carrying value of non-financial assets are assessed for impairment and, if ultimately considered impaired, are adjusted and written down to their fair value, as estimated based on consideration of external market participant assumptions and discounted cash flows. No impairment charges were recorded during the three-month and nine-month periods ended December 27, 2025 and December 28, 2024.

The Company performed its annual goodwill assessment using a qualitative approach as of the beginning of the second quarter of Fiscal 2026. In performing the assessment, the Company identified and considered the significance of relevant key factors, events, and circumstances that affected the fair values and/or carrying amounts of its reporting units with allocated goodwill. These factors included external factors such as macroeconomic, industry, and market conditions, as well as entity-specific factors, such as the Company's actual and expected financial performance. Additionally, the Company also considered the results of its most recent quantitative goodwill impairment test, which was performed as of the beginning of the second quarter of Fiscal 2024, the results of which indicated that the fair values of these reporting units significantly exceeded their respective carrying values. Based on the results of the qualitative impairment assessment, the Company concluded that it is not more likely than not that the fair values of its reporting units are less than their respective carrying values and there were no reporting units at risk of impairment. No impairment charges associated with goodwill or other intangible assets were recorded during the three-month and nine-month periods ended December 27, 2025 and December 28, 2024.


			23

RALPH LAUREN CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

11. Financial Instruments

Derivative Financial Instruments

The Company is exposed to changes in foreign currency exchange rates, primarily relating to certain anticipated cash flows and the value of the reported net assets of its international operations, as well as changes in the fair value of its fixed-rate debt obligations attributed to changes in benchmark interest rates. Accordingly, based on its assessment thereof, the Company may use derivative financial instruments to manage and mitigate such risks. The Company does not use derivatives for speculative or trading purposes.

The following table summarizes the Company's outstanding derivative instruments recorded on its consolidated balance sheets as of December 27, 2025 and March 29, 2025:


	Notional Amounts				Derivative Assets						Derivative Liabilities
Derivative Instrument(a)	December 27, 2025		March 29, 2025		December 27, 2025			March 29, 2025			December 27, 2025			March 29, 2025
					Balance Sheet Line(b)	Fair Value		Balance Sheet Line(b)	Fair Value		Balance Sheet Line(b)	Fair Value		Balance Sheet Line(b)	Fair Value
	(millions)
Designated Hedges:
FC — Cash flow hedges	$	308.0	$	367.9	PP	$	2.3	PP	$	3.9	AE	$	5.0	AE	$	6.2

Net investment hedges(c)	800.0		700.0			—		PP	26.6		ONCL	33.7		ONCL	2.4
Total Designated Hedges	1,108.0		1,067.9			2.3			30.5			38.7			8.6
Undesignated Hedges:
FC — Undesignated hedges(d)	287.9		247.5			—		PP	0.4		AE	1.8		AE	1.5
Total Hedges	$	1,395.9	$	1,315.4		$	2.3		$	30.9		$	40.5		$	10.1

**(a)**FC = Forward foreign currency exchange contracts.

**(b)**PP = Prepaid expenses and other current assets; AE = Accrued expenses and other current liabilities; ONCL = Other non-current liabilities.

**(c)**Includes cross-currency swaps designated as hedges of the Company's net investment in certain foreign operations.

**(d)**Relates to third-party and intercompany foreign currency-denominated exposures and balances.

The Company presents the fair values of its derivative assets and liabilities recorded on its consolidated balance sheets on a gross basis, even when they are subject to master netting arrangements. However, if the Company were to offset and record the asset and liability balances of all of its derivative instruments on a net basis in accordance with the terms of each of its master netting arrangements, spread across seven separate counterparties, the amounts presented in the consolidated balance sheets as of December 27, 2025 and March 29, 2025 would be adjusted from the current gross presentation as detailed in the following table:


	December 27, 2025						March 29, 2025
	Gross Amounts Presented in the Balance Sheet		Gross Amounts Not Offset in the Balance Sheet that are Subject to Master Netting Agreements		Net Amount		Gross Amounts Presented in the Balance Sheet		Gross Amounts Not Offset in the Balance Sheet that are Subject to Master Netting Agreements		Net Amount
	(millions)
Derivative assets	$	2.3	$	(2.3)	$	—	$	30.9	$	(5.4)	$	25.5
Derivative liabilities	40.5		(2.3)		38.2		10.1		(5.4)		4.7


			24

RALPH LAUREN CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The Company's master netting arrangements do not require cash collateral to be pledged by the Company or its counterparties. See Note 3 for further discussion of the Company's master netting arrangements.

The following tables summarize the pretax impact of gains and losses from the Company's designated derivative instruments on its consolidated financial statements for the three-month and nine-month periods ended December 27, 2025 and December 28, 2024:


	Gains (Losses) Recognized in OCI
	Three Months Ended				Nine Months Ended
	December 27, 2025		December 28, 2024		December 27, 2025		December 28, 2024
	(millions)
Designated Hedges:
FC — Cash flow hedges	$	0.9	$	23.2	$	(19.5)	$	17.1
Net investment hedges — effective portion	(6.1)		45.9		(62.6)		22.8
Net investment hedges — portion excluded from assessment of hedge effectiveness	6.1		(13.2)		10.7		(6.2)
Total Designated Hedges	$	0.9	$	55.9	$	(71.4)	$	33.7


	Location and Amount of Gains (Losses) from Cash Flow Hedges Reclassified from AOCI to Earnings
	Three Months Ended				Nine Months Ended
	December 27, 2025		December 28, 2024		December 27, 2025		December 28, 2024
	Cost of goods sold		Cost of goods sold		Cost of goods sold		Cost of goods sold
	(millions)
Total amounts presented in the consolidated statements of operations in which the effects of related cash flow hedges are recorded	$	(724.3)	$	(677.4)	$	(1,845.4)	$	(1,694.1)
Effects of cash flow hedging:
FC — Cash flow hedges	(9.2)		1.7		(9.5)		6.6


	Gains (Losses) from Net Investment Hedges Recognized in Earnings								Location of Gains (Losses) Recognized in Earnings
	Three Months Ended				Nine Months Ended
	December 27, 2025		December 28, 2024		December 27, 2025		December 28, 2024
	(millions)
Net Investment Hedges:
Net investment hedges — portion excluded from assessment of hedge effectiveness(a)	$	2.1	$	3.2	$	7.0	$	9.4	Interest expense
Total Net Investment Hedges	$	2.1	$	3.2	$	7.0	$	9.4

**(a)**Amounts recognized in other comprehensive income (loss) ("OCI") relating to the effective portion of the Company's net investment hedges would be recognized in earnings only upon the sale or liquidation of the hedged net investment.

As of December 27, 2025, it is estimated that $6.7 million of pretax net losses on both outstanding and matured derivative instruments designated and qualifying as cash flow hedges deferred in AOCI will be recognized in earnings over the next twelve months. Amounts ultimately recognized in earnings will depend on exchange rates in effect when outstanding derivative instruments are settled.


			25

RALPH LAUREN CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The following table summarizes the pretax impact of gains and losses from the Company's undesignated derivative instruments on its consolidated financial statements for the three-month and nine-month periods ended December 27, 2025 and December 28, 2024:


	Gains (Losses) Recognized in Earnings								Location of Gains (Losses) Recognized in Earnings
	Three Months Ended				Nine Months Ended
	December 27, 2025		December 28, 2024		December 27, 2025		December 28, 2024
	(millions)
Undesignated Hedges:
FC — Undesignated hedges	$	(2.0)	$	12.7	$	(11.6)	$	11.4	Other income (expense), net
Total Undesignated Hedges	$	(2.0)	$	12.7	$	(11.6)	$	11.4

Risk Management Strategies

Forward Foreign Currency Exchange Contracts

The Company uses forward foreign currency exchange contracts to mitigate its risk related to exchange rate fluctuations on inventory transactions made in an entity's non-functional currency, the settlement of foreign currency-denominated balances, and the translation of certain foreign operations' net assets into U.S. Dollars. As part of its overall strategy for managing the level of exposure to such exchange rate risk, relating primarily to the Euro, the Japanese Yen, the South Korean Won, the Australian Dollar, the Canadian Dollar, the British Pound Sterling, the Swiss Franc, and the Chinese Renminbi, the Company generally hedges a portion of its related exposures anticipated over the next twelve months using forward foreign currency exchange contracts with maturities of two months to one year to provide continuing coverage over the period of the respective exposure.

Cross-Currency Swap Contracts

The Company periodically designates pay-fixed rate, receive fixed-rate cross-currency swap contracts as hedges of its net investment in certain of its European subsidiaries. These contracts swap U.S. Dollar-denominated fixed interest rate payments based on the contract's notional amount and the fixed rate of interest payable on certain of the Company's senior notes for Euro-denominated fixed interest rate payments, thereby economically converting a portion of its fixed-rate U.S. Dollar-denominated senior note obligations to fixed-rate Euro-denominated obligations.

See Note 3 for further discussion of the Company's accounting policies relating to its derivative financial instruments.

Investments

The Company's short-term investments as of December 27, 2025 and March 29, 2025 were $218.9 million and $160.5 million, respectively, and consisted of time deposits.

No significant realized or unrealized gains or losses on available-for-sale investments or impairment charges were recorded during any of the fiscal periods presented.

Refer to Note 3 of the Fiscal 2025 10-K for further discussion of the Company's accounting policies relating to its investments.


			26

RALPH LAUREN CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

12. Commitments and Contingencies

Debt Obligations

In June 2025, the Company completed a $500 million registered public debt offering of 5.000% Senior Notes due June 15, 2032 (see Note 9). As of December 27, 2025, the Company's remaining aggregate interest obligation related to this debt was approximately $163 million, with interest coupons payable semi-annually.

Other Matters

The Company is involved, from time to time, in litigation, other legal claims, and proceedings involving matters associated with or incidental to its business, including, among other things, matters involving credit card fraud, trademark and other intellectual property, licensing, importation and exportation of its products, taxation, unclaimed property, leases, and employee relations. The Company believes at present that the resolution of currently pending matters will not individually or in the aggregate have a material adverse effect on its consolidated financial statements. However, the Company's assessment of any current litigation or other legal claims could potentially change in light of the discovery of facts not presently known or determinations by judges, juries, or other finders of fact which are not in accord with management's evaluation of the possible liability or outcome of such litigation or claims.

In the normal course of business, the Company may enter into certain guarantees or other agreements that provide general indemnifications. The Company has not made any significant indemnification payments under such agreements in the past and does not currently anticipate incurring any material indemnification payments.

13. Equity

Common Stock Repurchase Program

A summary of the Company's repurchases of Class A common stock under its common stock repurchase program is as follows:


	Nine Months Ended
	December 27, 2025		December 28, 2024
	(millions)
Cost of shares repurchased(a)	$	350.1	$	348.5
Number of shares repurchased	1.5		2.0

**(a)**Excludes excise taxes of $1.9 million and $2.7 million incurred during the nine-month periods ended December 27, 2025 and December 28, 2024, respectively.

On May 15, 2025, the Company's Board of Directors approved an expansion of the Company's existing common stock repurchase program that allows it to repurchase up to an additional $1.500 billion of its Class A common stock, excluding related excise taxes. As of December 27, 2025, the remaining availability under the Company's common stock repurchase program was approximately $1.502 billion. Repurchases of shares of the Company's Class A common stock are subject to overall business and market conditions.

In addition, during the nine-month periods ended December 27, 2025 and December 28, 2024, 0.4 million and 0.3 million shares of the Company's Class A common stock, at a cost of $123.3 million and $56.1 million, respectively, were surrendered to or withheld by the Company in satisfaction of withholding taxes in connection with the vesting of awards under its long-term stock incentive plans.

Repurchased and surrendered shares are accounted for as treasury stock at cost and held in treasury for future use.


			27

RALPH LAUREN CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Dividends

The Company has generally maintained a regular quarterly cash dividend program on its common stock since 2003.

On May 15, 2025, the Company's Board of Directors approved an increase to the Company's quarterly cash dividend on its common stock from $0.825 to $0.9125 per share. The Fiscal 2026 third quarter dividend of $0.9125 per share was declared on December 12, 2025, was payable to shareholders of record at the close of business on December 26, 2025, and was paid on January 9, 2026.

The Company intends to continue to pay regular dividends on outstanding shares of its common stock. However, any decision to declare and pay dividends in the future will ultimately be made at the discretion of the Company's Board of Directors and will depend on the Company's results of operations, cash requirements, financial condition, and other factors that the Board of Directors may deem relevant, including economic and market conditions.

14. Accumulated Other Comprehensive Income (Loss)

The following table presents OCI activity, net of tax, accumulated in equity:


	Foreign Currency Translation Gains (Losses)(a)		Net Unrealized Gains (Losses) on Cash Flow Hedges(b)		Net Unrealized Gains (Losses) on Defined Benefit Plans(c)		Total Accumulated Other Comprehensive Income (Loss)
	(millions)
Balance at March 29, 2025	$	(298.7)	$	2.8	$	(4.0)	$	(299.9)
Other comprehensive income (loss), net of tax:
OCI before reclassifications	73.9		(16.7)		(0.6)		56.6
Amounts reclassified from AOCI to earnings	—		8.1		0.1		8.2
Other comprehensive income (loss), net of tax	73.9		(8.6)		(0.5)		64.8
Balance at December 27, 2025	$	(224.8)	$	(5.8)	$	(4.5)	$	(235.1)

Balance at March 30, 2024	$	(280.0)	$	7.2	$	(3.3)	$	(276.1)
Other comprehensive income (loss), net of tax:
OCI before reclassifications	(57.8)		14.6		(0.9)		(44.1)
Amounts reclassified from AOCI to earnings	—		(5.6)		1.0		(4.6)
Other comprehensive income (loss), net of tax	(57.8)		9.0		0.1		(48.7)
Balance at December 28, 2024	$	(337.8)	$	16.2	$	(3.2)	$	(324.8)

**(a)**OCI before reclassifications to earnings related to foreign currency translation gains (losses) includes an income tax benefit of $11.9 million and an income tax provision of $4.5 million for the nine-month periods ended December 27, 2025 and December 28, 2024, respectively. OCI before reclassifications to earnings for the nine-month periods ended December 27, 2025 and December 28, 2024 includes losses of $39.3 million (net of a $12.6 million income tax benefit) and gains of $12.6 million (net of a $4.0 million income tax provision), respectively, related to changes in the fair values of instruments designated as hedges of the Company's net investment in certain foreign operations (see Note 11).

**(b)**OCI before reclassifications to earnings related to net unrealized gains (losses) on cash flow hedges are presented net of an income tax benefit of $2.8 million and an income tax provision of $2.5 million for the nine-month periods ended December 27, 2025 and December 28, 2024, respectively. The tax effects on amounts reclassified from AOCI to earnings are presented in a table below.

**(c)**Activity is presented net of taxes, which were immaterial for both periods presented.


			28

RALPH LAUREN CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The following table presents reclassifications from AOCI to earnings for cash flow hedges, by component:


	Three Months Ended				Nine Months Ended				Location of Gains (Losses) Reclassified from AOCI to Earnings
	December 27, 2025		December 28, 2024		December 27, 2025		December 28, 2024
	(millions)
Gains (losses) on cash flow hedges(a):
FC — Cash flow hedges	$	(9.2)	$	1.7	$	(9.5)	$	6.6	Cost of goods sold

Tax effect	1.3		(0.3)		1.4		(1.0)		Income tax benefit (provision)
Net of tax	$	(7.9)	$	1.4	$	(8.1)	$	5.6

**(a)**FC = Forward foreign currency exchange contracts.

15. Stock-based Compensation

The Company's stock-based compensation awards are currently issued under the 2019 Incentive Plan, which was approved by its stockholders on August 1, 2019. Any prior awards granted under either the Company's 2010 Incentive Plan or 1997 Incentive Plan remain subject to the terms of those plans, as applicable. Any awards that expire, are forfeited, or are surrendered to the Company in satisfaction of taxes are available for issuance under the 2019 Incentive Plan.

Refer to Note 18 of the Fiscal 2025 10-K for a detailed description of the Company's stock-based compensation awards, including information related to vesting terms, service, performance, and market conditions and payout percentages.

Impact on Results

A summary of total stock-based compensation expense and the related income tax benefits recognized during the three-month and nine-month periods ended December 27, 2025 and December 28, 2024 is as follows:


	Three Months Ended					Nine Months Ended
	December 27, 2025		December 28, 2024			December 27, 2025		December 28, 2024
	(millions)
Stock-based compensation expense	$	24.9	$	24.7	(a)	$	86.7	$	84.7	(a)
Income tax benefit	(3.8)		(3.5)			(13.3)		(11.5)

**(a)**The three-month and nine-month periods ended December 28, 2024 included $1.8 million and $3.8 million, respectively, of stock-based compensation expense recorded in connection with an employment separation agreement within restructuring and other charges, net in the consolidated statements of operations (see Note 7). All other stock-based compensation expense was recorded within SG&A expenses.

The Company issues its annual grants of stock-based compensation awards in the second quarter of each fiscal year. Due to the timing of the annual grants and other factors, including the timing and magnitude of forfeiture and performance goal achievement adjustments, as well as changes to the size and composition of the eligible employee population, stock-based compensation expense recognized during any given fiscal period is not indicative of the level of compensation expense expected to be incurred in future periods.

Service-based RSUs

The fair values of service-based RSUs granted to certain of the Company's senior executives and other employees, as well as non-employee directors, are based on the fair value of the Company's Class A common stock on the date of grant, adjusted to reflect the absence of dividends for any awards for which dividend equivalent amounts do not accrue to the holder while outstanding and unvested. The weighted-average grant date fair values of service-based RSU awards granted were $283.26 and $159.99 per share during the nine-month periods ended December 27, 2025 and December 28, 2024, respectively.


			29

RALPH LAUREN CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

A summary of service-based RSU activity during the nine months ended December 27, 2025 is as follows:


						Number of Service-based RSUs
						(thousands)
Unvested at March 29, 2025						879
Granted						258
Vested						(461)
Forfeited						(20)
Unvested at December 27, 2025						656

Performance-based RSUs

The fair values of the Company's performance-based RSUs granted to its senior executives and other key employees are based on the fair value of the Company's Class A common stock on the date of grant, adjusted to reflect the absence of dividends for any awards for which dividend equivalent amounts do not accrue to the holder while outstanding and unvested. The weighted-average grant date fair values of performance-based RSU awards granted were $283.34 and $158.85 per share during the nine-month periods ended December 27, 2025 and December 28, 2024, respectively.

Market-based RSUs

The Company grants market-based RSUs, which are based on total shareholder return ("TSR") performance, to its senior executives and other key employees. The Company estimates the fair value of its TSR awards on the date of grant using a Monte Carlo simulation, which models multiple stock price paths of the Company's Class A common stock and that of its peer group to evaluate and determine its ultimate expected relative TSR performance ranking. Compensation expense, net of estimated forfeitures, is recorded regardless of whether, and the extent to which, the market condition is ultimately satisfied. The weighted-average grant date fair values of market-based RSUs granted were $435.85 and $212.05 per share during the nine-month periods ended December 27, 2025 and December 28, 2024, respectively. The assumptions used to estimate the fair value of TSR awards granted during the nine-month periods ended December 27, 2025 and December 28, 2024 were as follows:


	Nine Months Ended
	December 27, 2025		December 28, 2024
Expected volatility	34.3	%	36.7	%
Expected dividend yield	1.3	%	2.0	%
Risk-free interest rate	3.7	%	3.9	%

A summary of performance-based RSU activity including TSR awards during the nine months ended December 27, 2025 is as follows:


						Number of Performance-based RSUs
						(thousands)
Unvested at March 29, 2025						637
Granted						86
Change due to performance and/or market condition achievement						244
Vested						(498)
Forfeited						(4)
Unvested at December 27, 2025						465


			30

RALPH LAUREN CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

16. Segment Information

The Company has three reportable segments based on its business activities and organization:

North America — The North America segment primarily consists of sales of Ralph Lauren branded apparel, footwear & accessories, home, and related products made through the Company's retail and wholesale businesses primarily in the U.S. and Canada. In North America, the Company's retail business is primarily comprised of its Ralph Lauren stores, its outlet stores, and its digital commerce sites, www.RalphLauren.com and www.RalphLauren.ca. The Company's wholesale business in North America is comprised primarily of sales to department stores and, to a lesser extent, specialty stores.
Europe — The Europe segment primarily consists of sales of Ralph Lauren branded apparel, footwear & accessories, home, and related products made through the Company's retail and wholesale businesses in Europe and emerging markets. In Europe, the Company's retail business is primarily comprised of its Ralph Lauren stores, its outlet stores, its concession-based shop-within-shops, and its various digital commerce sites. The Company's wholesale business in Europe is comprised primarily of a varying mix of sales to both department stores and specialty stores, depending on the country, as well as to various third-party digital and licensee partners.
Asia — The Asia segment primarily consists of sales of Ralph Lauren branded apparel, footwear & accessories, home, and related products made through the Company's retail and wholesale businesses in Asia, Australia, and New Zealand. The Company's retail business in Asia is primarily comprised of its Ralph Lauren stores, its outlet stores, its concession-based shop-within-shops, and its various digital commerce sites. In addition, the Company sells its products online through various third-party digital partner commerce sites. The Company's wholesale business in Asia is comprised primarily of sales to department stores and various third-party digital and licensee partners.

No operating segments were aggregated to form the Company's reportable segments. In addition to these reportable segments, the Company also has other non-reportable segments, which primarily consist of Ralph Lauren and Chaps branded royalty revenues earned through its global licensing alliances.

The Company's segment reporting structure is consistent with how it establishes its overall business strategy, allocates resources, and assesses performance of its business. The accounting policies of the Company's segments are consistent with those described in Notes 2 and 3 of the Fiscal 2025 10-K. Sales and transfers between segments are generally recorded at cost and treated as transfers of inventory. All intercompany revenues are eliminated in consolidation and are not reviewed when evaluating segment performance. The Company's chief operating decision maker (the "CODM") as defined within Accounting Standards Codification Topic 280, "Segment Reporting," is its President and Chief Executive Officer, who assesses segment performance and allocates resources based upon net revenues and operating income before restructuring-related charges, impairment of assets, and certain other non-routine items, if any. In addition, the Company's CODM is regularly provided each segment's gross profit and total SG&A expenses, as well as SG&A expense by category at the consolidated level. Certain corporate overhead expenses related to global functions, most notably the Company's executive office, information technology, finance and accounting, human resources, and legal departments, largely remain at corporate. Additionally, other costs that cannot be allocated to the segments based on specific usage are also maintained at corporate, including corporate marketing and advertising expenses, depreciation and amortization of corporate assets, and other general and administrative expenses resulting from corporate-level activities and projects. Asset information by segment is not utilized by the CODM for purposes of assessing performance or allocating resources, and therefore such information has not been presented.


			31

RALPH LAUREN CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Net revenues, significant expenses, and segment operating income for each of the Company's segments are as follows:


	Three Months Ended December 27, 2025
	North America		Europe		Asia		Other non-reportable segments		Total
	(millions)
Net revenues, significant expenses, and segment operating income:
Net revenues	$	1,078.3	$	676.5	$	620.3	$	30.9	$	2,406.0
Cost of goods sold	(403.5)		(217.9)		(121.8)		—		(743.2)
Selling, general, and administrative expenses(a)	(382.1)		(280.0)		(301.2)		(3.9)		(967.2)
Total segment operating income	$	292.7	$	178.6	$	197.3	$	27.0	$	695.6
Reconciliation of segment operating income to consolidated operating income and income before income taxes:
Corporate expenses, net									$	(192.5)

Restructuring and other charges, net(b)									(31.8)
Operating income									471.3
Non-operating income (expense), net									(7.5)
Income before income taxes									$	463.8


	Three Months Ended December 28, 2024
	North America		Europe		Asia		Other non-reportable segments		Total
	(millions)
Net revenues, significant expenses, and segment operating income:
Net revenues	$	997.7	$	604.4	$	506.7	$	34.7	$	2,143.5
Cost of goods sold	(375.9)		(198.2)		(112.0)		—		(686.1)
Selling, general, and administrative expenses(a)	(358.1)		(237.4)		(258.5)		(4.6)		(858.6)
Total segment operating income	$	263.7	$	168.8	$	136.2	$	30.1	$	598.8
Reconciliation of segment operating income to consolidated operating income and income before income taxes:
Corporate expenses, net									$	(196.9)

Restructuring and other charges, net(b)									(12.2)
Operating income									389.7
Non-operating income (expense), net									(6.0)
Income before income taxes									$	383.7


	Nine Months Ended December 27, 2025
	North America		Europe		Asia		Other non-reportable segments		Total
	(millions)
Net revenues, significant expenses, and segment operating income:
Net revenues	$	2,566.9	$	1,919.3	$	1,539.9	$	109.7	$	6,135.8
Cost of goods sold	(995.9)		(616.7)		(288.4)		—		(1,901.0)
Selling, general, and administrative expenses(a)	(981.2)		(775.5)		(797.6)		(13.8)		(2,568.1)
Total segment operating income	$	589.8	$	527.1	$	453.9	$	95.9	$	1,666.7
Reconciliation of segment operating income to consolidated operating income and income before income taxes:
Corporate expenses, net									$	(587.7)

Restructuring and other charges, net(b)									(88.4)
Operating income									990.6
Non-operating income (expense), net									(6.0)
Income before income taxes									$	984.6


			32

RALPH LAUREN CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)


	Nine Months Ended December 28, 2024
	North America		Europe		Asia		Other non-reportable segments		Total
	(millions)
Net revenues, significant expenses, and segment operating income:
Net revenues	$	2,345.4	$	1,649.4	$	1,277.8	$	109.1	$	5,381.7
Cost of goods sold	(909.0)		(558.7)		(265.0)		—		(1,732.7)
Selling, general, and administrative expenses(a)	(931.0)		(655.4)		(683.1)		(15.9)		(2,285.4)
Total segment operating income	$	505.4	$	435.3	$	329.7	$	93.2	$	1,363.6
Reconciliation of segment operating income to consolidated operating income and income before income taxes:
Corporate expenses, net									$	(548.5)

Restructuring and other charges, net(b)									(38.0)
Operating income									777.1
Non-operating income (expense), net									11.3
Income before income taxes									$	788.4

**(a)**SG&A expenses include costs relating to compensation and benefits, marketing and advertising, rent and occupancy, distribution, information technology, legal, depreciation and amortization, bad debt, and other selling and administrative costs.

**(b)**The three-month and nine-month periods ended December 27, 2025 and December 28, 2024 included certain restructuring and other charges, net (see Note 7) that are excluded from the segment profitability measure utilized by the CODM, which are detailed below:


	Three Months Ended				Nine Months Ended
	December 27, 2025		December 28, 2024		December 27, 2025		December 28, 2024
	(millions)
Restructuring and other charges, net:
North America-related	$	(3.8)	$	(0.1)	$	(6.7)	$	0.3
Europe-related	(0.6)		(1.5)		(1.2)		(2.9)
Asia-related	—		0.8		(3.5)		(2.4)
Other non-reportable segment-related	—		—		—		(0.1)
Corporate operations-related	(1.6)		(0.1)		(9.2)		(6.7)
Restructuring charges, net	(6.0)		(0.9)		(20.6)		(11.8)
Other charges (see Note 7)	(25.8)		(11.3)		(67.8)		(26.2)
Total restructuring and other charges, net	$	(31.8)	$	(12.2)	$	(88.4)	$	(38.0)


			33

RALPH LAUREN CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The following tables summarize depreciation and amortization expense and capital expenditures for each of the Company's segments:


	Three Months Ended				Nine Months Ended
	December 27, 2025		December 28, 2024		December 27, 2025		December 28, 2024
	(millions)
Depreciation and amortization expense:
North America	$	20.2	$	20.3	$	60.7	$	61.4
Europe	10.2		8.9		29.0		26.4
Asia	14.8		13.1		42.6		39.0

Corporate	14.5		12.0		39.9		37.8

Total depreciation and amortization expense	$	59.7	$	54.3	$	172.2	$	164.6


	Three Months Ended				Nine Months Ended
	December 27, 2025		December 28, 2024		December 27, 2025		December 28, 2024
	(millions)
Capital expenditures:
North America	$	13.6	$	11.0	$	189.7	$	28.6
Europe	15.2		12.0		30.4		22.3
Asia	22.2		17.6		50.7		38.5
Corporate	24.6		20.6		85.9		46.9
Total capital expenditures	$	75.6	$	61.2	$	356.7	$	136.3

Net revenues by geographic location of the reporting subsidiary are as follows:


	Three Months Ended				Nine Months Ended
	December 27, 2025		December 28, 2024		December 27, 2025		December 28, 2024
	(millions)
Net revenues(a):
The Americas(b)	$	1,115.2	$	1,037.8	$	2,693.7	$	2,470.6
Europe(c)	670.5		599.0		1,902.2		1,633.3
Asia(d)	620.3		506.7		1,539.9		1,277.8
Total net revenues	$	2,406.0	$	2,143.5	$	6,135.8	$	5,381.7

**(a)**Net revenues for certain of the Company's licensed operations are included within the geographic location of the reporting subsidiary which holds the respective license.

**(b)**Includes the U.S., Canada, and Latin America. Net revenues earned in the U.S. during the three-month and nine-month periods ended December 27, 2025 were $1.048 billion and $2.542 billion, respectively, and $976.7 million and $2.337 billion during the three-month and nine-month periods ended December 28, 2024, respectively.

**(c)**Includes the Middle East.

**(d)**Includes Australia and New Zealand.


			34

RALPH LAUREN CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

17. Additional Financial Information

Reconciliation of Cash, Cash Equivalents, and Restricted Cash

A reconciliation of cash, cash equivalents, and restricted cash as of December 27, 2025 and March 29, 2025 from the consolidated balance sheets to the consolidated statements of cash flows is as follows:


	December 27, 2025		March 29, 2025
	(millions)
Cash and cash equivalents	$	2,031.9	$	1,922.5
Restricted cash included within prepaid expenses and other current assets	2.1		1.4
Restricted cash included within other non-current assets	5.4		5.5
Total cash, cash equivalents, and restricted cash	$	2,039.4	$	1,929.4

Restricted cash relates to cash held in escrow with certain banks as collateral, primarily to secure guarantees in connection with certain international tax matters and real estate leases.

Cash Paid for Interest and Taxes

Cash paid for interest and income taxes is as follows:


	Nine Months Ended
		December 27, 2025		December 28, 2024
		(millions)
Cash paid for interest		$	43.2	$	35.6
Cash paid for income taxes, net of refunds		267.1		136.6

Cash Paid for Leases

The following table summarizes certain cash flow information related to the Company's leases:


	Nine Months Ended
	December 27, 2025		December 28, 2024
	(millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	253.7	$	265.4
Operating cash flows for finance leases	5.3		5.8
Financing cash flows for finance leases	17.7		16.5

Non-cash Transactions

Operating lease ROU assets recorded in connection with the recognition of new lease liabilities were $301.2 million and $229.8 million for the nine-month periods ended December 27, 2025 and December 28, 2024, respectively. Finance lease ROU assets recorded in connection with the recognition of new lease liabilities were $1.6 million and $0.4 million for the nine-month periods ended December 27, 2025 and December 28, 2024, respectively.

Non-cash investing activities also included capital expenditures incurred but not yet paid of $33.2 million and $28.2 million for the nine-month periods ended December 27, 2025 and December 28, 2024, respectively.

There were no other significant non-cash investing or financing activities for any of the fiscal periods presented.


			35

Next: Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.