AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 6/6 · 18/10/2026
Moat56
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 3/4 · Trademark licensing with guaranteed minimum payments, higher realized average unit retail and growing core demand demonstrate a commercially valuable brand advantage. This conclusion does not rest on margins alone.
durability · 2/4 · Three years of regional revenue growth and multi-year minimum royalty commitments support persistence. Low entry barriers and limited historical pricing and renewal evidence constrain the durability assessment.
customer dependency · 2/4 · Reported improvements in loyalty indicators and continued demand provide indirect evidence of attachment. Licensees contract for trademark access, but consumer switching friction and repeat-purchase rates are not disclosed.
erosion resilience · 2/4 · Growth and subsequent operating improvement demonstrate resilience, while realized North American tariff pressure shows vulnerability. Competitive and discretionary-demand risks are possibilities, not evidence that brand erosion has occurred.
Pricing power63
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 3/4 · Management reports 15% direct-to-consumer average unit retail growth in Fiscal 2026, lower promotions and strong full-price selling alongside category growth. This is an observed commercial outcome, although mix effects prevent treating it as a 15% like-for-like price increase.
retention · 2/4 · Strengthened net promoter scores, reported loyalty improvement and continued retail growth support repeat demand indirectly. New-customer acquisition is not retention, and no repeat-purchase rate or comparable customer-cohort history is supplied.
margin resilience · 3/4 · Consolidated operating results improved across Fiscal 2024–2026 and again in the June 2026 quarter, demonstrating overall economic resilience. North American tariff-related gross-margin contraction limits the conclusion, and pricing cannot be separated fully from mix, currency and cost management.
contractual freedom · 2/4 · Licensing contracts secure sales-based royalties and, in most arrangements, minimum payments. These demonstrate an ability to negotiate favorable terms, but do not establish unilateral repricing rights; broader retail and wholesale contractual pricing constraints are undisclosed.
Predictability98
Five consecutive annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 100.00
- Revenue growth volatility (pp)
- 4.65
- Positive FCF years (%)
- 100.00
- FCF margin volatility (pp)
- 4.08
Financial strength98
Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 90.56
- netDebtEbitGrade
- 100.00
- interestCoverageGrade
- 100.00
- currentRatioGrade
- 100.00
- Debt / FCF (x)
- 1.66
- Net debt / operating income (x)
- -0.64
- Interest coverage (x)
- 21.76
- Current ratio (x)
- 2.13
Capital allocation100
Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year pre-tax operating return (%)
- 49.49
- 3-year average dilution (%)
- -3.41
- 3-year average SBC / revenue (%)
- 1.46
- cashConversionGrade
- 100.00
Management56
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · Operating cash generation improved, diluted shares declined and management reports buybacks exceeding compensation dilution. However, latest-quarter dividends and total repurchase cash outflows exceeded operating cash after capital expenditure; annual capital spending also rose substantially. Investment returns and repurchase valuation discipline are not established.
incentive alignment · 2/4 · Actual equity awards, three-year relative-TSR conditions, performance-related vesting activity and ownership requirements establish alignment mechanisms. Service-based awards and adjusted incentive measures, including exclusion of marketing expense, make alignment mixed rather than exceptional. Complete ownership and payout details are missing.
execution · 3/4 · Multi-year regional revenue and operating-income growth, reported pricing achievements and improved quarterly operating cash generation support strong execution through operating evidence. Customer execution is assessed indirectly; expected transformation synergies are not counted as delivered results.
governance · 2/4 · The disclosed 75% independent board, independent committees, separate chairman and CEO roles and annual elections are substantive safeguards. Controlled-company status and Class B rights to elect nine directors constrain ordinary Class A shareholder influence. Beneficial ownership and voting percentages are not supplied.
Evidence
Open, Australian Open and Wimbledon Tennis Championships; our Spring 2026 and Fall 2026 Women’s Collection fashion shows in New York; and our Very Ralph documentary events in Hong Kong, Japan, Korea, and Singapore • Drive the Core and Expand for More − Increased average unit retail by 15% across our direct-to-consumer network in Fiscal 2026, reflecting the durability of our multi-pronged elevation approach, our growing brand desirability, strong full-price selling trends, and lower promotions − Drove continued momentum in our Core business, which grew mid-teens to last year, along with our high-potential categories (Women’s Apparel, Outerwear and Handbags), which increased more than 20% to last year in constant currency.
Proxy statement / strategic results / realized average unit retail, promotions and category growth · Filed 18/06/2026
Results of our Strategic Plan included: • Elevate and Energize Our Lifestyle Brand − Delivered sustainable growth in new customer acquisition and loyalty with 6.5 million new consumers in our direct-to-consumer channels and strengthened net promoter scores and brand consideration led by younger, higher value and less price-sensitive cohorts − Invested in powerful key brand moments to drive authentic connections with consumers around the world, notably: our Milano Cortina 2026 Winter Olympics campaign as official outfitter of Team USA; our dynamic annual sponsorships of the U.S.
Proxy statement / strategic results / consumer acquisition and reported loyalty indicators · Filed 18/06/2026
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.
Revenue recognition / licensee access to trademarks · Filed 06/08/2026
As of June 27, 2026, 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 2027 $ 76.6 Fiscal 2028 78.4 Fiscal 2029 52.8 Fiscal 2030 38.8 Fiscal 2031 and thereafter 2.3 Total $ 248.9 (a)Amounts presented do not contemplate potential contract renewals or royalties earned in excess of contractually-guaranteed minimums.
Revenue recognition / future contractually guaranteed minimum royalties · Filed 06/08/2026
9 RALPH LAUREN CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Disaggregated Net Revenues The following table disaggregates 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 June 27, 2026 June 28, 2025 North America Europe Asia Other Total North America Europe Asia Other Total (millions) Sales Channel(a): Retail $ 503.2 $ 294.9 $ 571.2 $ — $ 1,369.3 $ 461.0 $ 285.8 $ 454.4 $ — $ 1,201.2 Wholesale 237.1 299.5 18.1 — 554.7 195.2 268.7 19.6 — 483.5 Licensing — — — 35.8 35.8 — — — 34.4 34.4 Total $ 740.3 $ 594.4 $ 589.3 $ 35.8 $ 1,959.8 $ 656.2 $ 554.5 $ 474.0 $ 34.4 $ 1,719.1 (a)Net revenues from the Company's retail and wholesale businesses are recognized at a point in time.
Disaggregated net revenues / retail, wholesale and licensing channels · Filed 06/08/2026
F-47 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: Fiscal Year Ended March 28, 2026 North America Europe Asia Other non-reportable segments Total (millions) Net revenues, significant expenses, and segment operating income: Net revenues $ 3,329.6 $ 2,538.9 $ 2,103.5 $ 142.5 $ 8,114.5 Cost of goods sold (1,310.0) (801.5) (393.9) — (2,505.4) Selling, general, and administrative expenses(a) (1,295.4) (1,032.8) (1,132.4) (18.7) (3,479.3) Total segment operating income $ 724.2 $ 704.6 $ 577.2 $ 123.8 $ 2,129.8 Reconciliation of segment operating income to consolidated operating income and income before income taxes: Corporate expenses, net $ (832.5) Restructuring and other charges, net(b) (118.1) Operating income 1,179.2 Non-operating income (expense), net (1.5) Income before income taxes $ 1,177.7 Fiscal Year Ended March 29, 2025 North America Europe Asia Other non-reportable segments Total (millions) Net revenues, significant expenses, and segment operating income: Net revenues $ 3,050.1 $ 2,174.9 $ 1,709.4 $ 144.6 $ 7,079.0 Cost of goods sold (1,184.8) (733.1) (355.7) — (2,273.6) Selling, general, and administrative expenses(a) (1,225.2) (875.6) (940.5) (18.8) (3,060.1) Total segment operating income $ 640.1 $ 566.2 $ 413.2 $ 125.8 $ 1,745.3 Reconciliation of segment operating income to consolidated operating income and income before income taxes: Corporate expenses, net $ (755.4) Restructuring and other charges, net(b) (57.8) Operating income 932.1 Non-operating income (expense), net 18.6 Income before income taxes $ 950.7 Fiscal Year Ended March 30, 2024 North America Europe Asia Other non-reportable segments Total (millions) Net revenues, significant expenses, and segment operating income: Net revenues $ 2,950.5 $ 1,968.0 $ 1,566.6 $ 146.3 $ 6,631.4 Cost of goods sold (1,211.8) (710.5) (338.6) — (2,260.9) Selling, general, and administrative expenses(a) (1,189.8) (792.9) (892.1) (17.4) (2,892.2) Total segment operating income $ 548.9 $ 464.6 $ 335.9 $ 128.9 $ 1,478.3 Reconciliation of segment operating income to consolidated operating income and income before income taxes: Corporate expenses, net $ (647.0) Restructuring and other charges, net(b) (74.9) Operating income 756.4 Non-operating income (expense), net 21.0 Income before income taxes $ 777.4 F-48 RALPH LAUREN CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (a)SG&A expenses include costs relating to compensation and benefits, marketing and advertising, rent and occupancy, distribution, depreciation and amortization, bad debt, and other selling and administrative costs.
Segment financial statements / Fiscal 2024–2026 revenue and operating results · Filed 21/05/2026
In addition, technological advances and the retail industry's low barriers to entry allow for the introduction of new competitors and products at a rapid pace, which has been further compounded by the increasing shift to digital shopping channels.
Competition risk / low retail entry barriers · Filed 21/05/2026
Some of our competitors may be significantly larger and more diversified and may have greater financial, marketing, and distribution resources, more desirable store locations, and/or greater digital commerce presence than us, among other competitive advantages.
Competition risk / potential rival resource advantages · Filed 21/05/2026
North America operating margin improved by 80 basis points, primarily due to a reduction of 130 basis points in SG&A expense as a percentage of net revenues, more than offsetting a decline of 50 basis points in gross margin due to tariff-related pressures.
Fiscal 2026 North America results / tariff-related gross-margin decline · Filed 21/05/2026
and other countries and any resulting anti-American sentiment, high interest rates, and bank failures, among other factors described herein; the impact to our business resulting from a prolonged slowdown in economic conditions or changes in consumers' ability, willingness, or preferences to purchase discretionary items and luxury retail products, which tends to decline during periods of economic weakness, and our ability to accurately forecast consumer demand, the failure of which could result in either a build-up or shortage of inventory; the potential impact to our business resulting from supply chain disruptions, including those caused by capacity constraints, closed factories and/or labor shortages (stemming from pandemic diseases, labor disputes, strikes, or otherwise), man-made or natural disasters, scarcity of raw materials, port congestion, and scrutiny or detention of goods produced in certain territories resulting from laws, regulations, or trade restrictions, such as those imposed by the Uyghur Forced Labor Prevention Act (“UFLPA”) or the Countering America's Adversaries Through Sanctions Act (“CAATSA”), which could result in shipment approval delays leading to inventory shortages and lost sales, as well as potential shipping delays, inventory shortages, and/or higher freight and other operating costs resulting from port strikes, the recent Red Sea crisis, and/or disruptions to major waterways such as the Suez and Panama canals and the Strait of Hormuz, and/or increases in oil and other energy prices; changes in our tax obligations and effective tax rate due to a variety of factors, including potential changes in U.S.
Forward-looking risk disclosures / discretionary demand and supply-chain exposure · Filed 18/06/2026
2 RALPH LAUREN CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended June 27, 2026 June 28, 2025 (millions, except per share data) Net revenues $ 1,959.8 $ 1,719.1 Cost of goods sold (515.6) (476.8) Gross profit 1,444.2 1,242.3 Selling, general, and administrative expenses (1,077.0) (949.4) Restructuring and other charges, net (24.8) (19.3) Total other operating expenses, net (1,101.8) (968.7) Operating income 342.4 273.6 Interest expense (13.0) (11.5) Interest income 11.6 14.8 Other income (expense), net 1.2 1.1 Income before income taxes 342.2 278.0 Income tax provision (80.0) (57.6) Net income $ 262.2 $ 220.4 Net income per common share: Basic $ 4.36 $ 3.62 Diluted $ 4.28 $ 3.52 Weighted-average common shares outstanding: Basic 60.1 61.0 Diluted 61.3 62.5 Dividends declared per share $ 1.00 $ 0.9125 See accompanying notes.
Unaudited consolidated statements of operations / quarter ended June 27, 2026 · Filed 06/08/2026
4 RALPH LAUREN CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Three Months Ended June 27, 2026 June 28, 2025 (millions) Cash flows from operating activities: Net income $ 262.2 $ 220.4 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization expense 58.9 55.5 Deferred income tax expense (benefit) 17.8 (5.8) Stock-based compensation expense 26.0 22.4 Bad debt expense 0.9 2.7 Other non-cash charges (benefits) 2.0 (1.8) Changes in operating assets and liabilities: Accounts receivable 99.1 79.1 Inventories (156.3) (234.8) Prepaid expenses and other current assets (38.4) (25.1) Accounts payable and accrued liabilities 53.3 85.8 Income tax receivables and payables 20.0 (1.7) Operating lease right-of-use assets and liabilities, net (7.6) (1.1) Other balance sheet changes 1.4 (19.5) Net cash provided by operating activities 339.3 176.1 Cash flows from investing activities: Capital expenditures (53.4) (187.3) Purchases of investments (207.5) (171.1) Proceeds from sales and maturities of investments 60.0 154.1 Other investing activities (3.2) 6.0 Net cash used in investing activities (204.1) (198.3) Cash flows from financing activities: Proceeds from the issuance of long-term debt — 498.2 Payments of finance lease obligations (7.1) (6.0) Payments of dividends (54.8) (50.7) Repurchases of common stock, including shares surrendered for tax withholdings (325.1) (323.3) Other financing activities — (4.1) Net cash (used in) provided by financing activities (387.0) 114.1 Effect of exchange rate changes on cash, cash equivalents, and restricted cash (16.5) 76.1 Net (decrease) increase in cash, cash equivalents, and restricted cash (268.3) 168.0 Cash, cash equivalents, and restricted cash at beginning of period 1,994.7 1,929.4 Cash, cash equivalents, and restricted cash at end of period $ 1,726.4 $ 2,097.4 See accompanying notes.
Unaudited cash-flow statement / operating cash generation, investment and financing · Filed 06/08/2026
(b)The fiscal years presented included certain restructuring and other charges, net (see Note 8) that are excluded from the segment profitability measure utilized by the CODM, which are detailed below: Fiscal Years Ended March 28, 2026 March 29, 2025 March 30, 2024 (millions) Restructuring and other charges, net: North America-related $ (7.6) $ (0.6) $ (6.6) Europe-related (1.2) (3.4) (3.9) Asia-related (3.5) (2.6) (7.6) Other non-reportable segment-related — (0.1) (0.6) Corporate operations-related (13.6) (13.7) (37.1) Restructuring charges, net (25.9) (20.4) (55.8) Other charges (see Note 8) (92.2) (37.4) (19.1) Total restructuring and other charges, net $ (118.1) $ (57.8) $ (74.9) The following tables summarize depreciation and amortization expense and capital expenditures for each of the Company's segments: Fiscal Years Ended March 28, 2026 March 29, 2025 March 30, 2024 (millions) Depreciation and amortization expense: North America $ 81.0 $ 81.5 $ 81.1 Europe 38.9 35.7 36.9 Asia 57.7 52.6 52.4 Corporate 55.4 49.8 58.6 Total depreciation and amortization expense $ 233.0 $ 219.6 $ 229.0 Fiscal Years Ended March 28, 2026 March 29, 2025 March 30, 2024 (millions) Capital expenditures: North America $ 209.2 $ 58.5 $ 55.5 Europe 38.3 28.6 25.2 Asia 61.1 59.0 49.0 Corporate 99.5 70.1 35.1 Total capital expenditures $ 408.1 $ 216.2 $ 164.8 F-49 RALPH LAUREN CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Net revenues and long-lived assets by geographic location of the reporting subsidiary are as follows: Fiscal Years Ended March 28, 2026 March 29, 2025 March 30, 2024 (millions) Net revenues(a): The Americas(b) $ 3,495.1 $ 3,215.1 $ 3,122.2 Europe(c) 2,515.8 2,154.5 1,942.6 Asia(d) 2,103.6 1,709.4 1,566.6 Total net revenues $ 8,114.5 $ 7,079.0 $ 6,631.4 March 28, 2026 March 29, 2025 (millions) Long-lived assets(a): The Americas(b) $ 1,335.7 $ 1,079.2 Europe(c) 662.2 493.4 Asia(d) 372.3 286.9 Total long-lived assets $ 2,370.2 $ 1,859.5 (a)For certain of the Company's licensed operations, net revenues and long-lived assets, which is comprised of property and equipment and lease ROU assets, are included within the geographic location of the reporting subsidiary which holds the respective license.
Segment notes / restructuring charges and capital expenditures · Filed 21/05/2026
These arrangements require licensees to pay a sales-based royalty which, for most arrangements, may be subject to a contractually-guaranteed minimum royalty amount.
Licensing arrangements / sales-based royalties and minimum payments · Filed 06/08/2026
We also returned more than $700 million to stockholders in Fiscal 2026 through dividends and share repurchase programs, with our share buybacks more than offsetting the dilutive effect of our share-based employee compensation plans.
Proxy statement / Fiscal 2026 capital returns and dilution offset · Filed 18/06/2026
The grant date fair value of the Company's market-based RSU awards, for which vesting is dependent upon total shareholder return ("TSR") of its Class A common stock over a three-year performance period relative to that of a pre-established peer group, is estimated using a Monte Carlo simulation model.
Stock-based compensation / three-year relative shareholder-return vesting condition · Filed 21/05/2026
A summary of performance-based RSU activity including TSR awards during the three months ended June 27, 2026 is as follows: Number of Performance-based RSUs (thousands) Unvested at March 28, 2026 465 Granted — Change due to performance and/or market condition achievement 195 Vested (403) Forfeited — Unvested at June 27, 2026 257 16.
Stock-based compensation / actual performance-based award activity and vesting · Filed 06/08/2026
• Lead Independent Director – Robust responsibilities regularly evaluated for alignment with best practices • Independence – 75% independent Board, as defined in the listing rules of the NYSE, and which exceeds the NYSE listing rules requirement of majority independent directors; fully independent Board Committees • Board Leadership – Separate Chairman and CEO roles • Annual Elections – All directors are elected annually • Stock Ownership – Director and executive stock ownership/holding requirements • Stockholder Engagement – Longstanding commitment to stockholder outreach, conducted on an ongoing basis and at least once annually, with the presence of the Lead Independent Director upon stockholder request, which directly informs corporate policies and practices • Accountability to Stockholders – Various annual measures in support of stockholder feedback, including: annual election of directors with Class A stockholders solely electing the three Class A directors, annual stockholder advisory vote on executive compensation, and the ability of stockholders to remove directors with or without cause • Board Evolution and Succession Planning – Continued commitment to proactive and ongoing Board evolution, including rotation of Committee Chairs at least every five years and ongoing assessment of each Board member’s skills and experience for alignment with strategic priorities and risks and to ensure appropriate mix of skills, expertise, and backgrounds on the Board.
Corporate governance / board independence, ownership requirements and shareholder rights · Filed 18/06/2026
We do not rely on exemptions from certain of the NYSE’s corporate governance requirements available to us as a controlled company.
Corporate governance / controlled-company status and exemptions · Filed 18/06/2026
• Nine directors (the “Class B Directors”) will be elected by a plurality vote of the shares of Class B Common Stock present in person or by proxy at the 2026 Annual Meeting and eligible to vote.
Annual meeting voting provisions / Class B director election rights · Filed 18/06/2026
(7) In accordance with the EIP targets established by the Talent Committee at the beginning of the fiscal year, marketing & advertising expense has been excluded for purposes of determining the achievement level reached related to its Fiscal 2026 short-term incentive plan.
Compensation reconciliation / marketing and advertising exclusion from incentive measurement · Filed 18/06/2026
These efforts are expected to result in significant process improvements and the creation of synergies across core areas of operations, as well as 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.
Transformation project / expected operational benefits · Filed 06/08/2026
