RL · News · 20260806N

Gross Margin Drivers

RALPH LAUREN CORP · 2026-08-06 · Importance 26 · Surprise 24

Gross margin expanded to 73.7% in the first quarter of fiscal 2027. Adjusted operating margin widened to 18.7%, reflecting improved operational efficiency. Margin gains were driven by higher full-price selling, stronger average unit retail prices, disciplined inventory management, and favorable demand for elevated products despite tariff pressures.

Key facts

• Growth was driven by Asia, higher average unit retail prices, and strong full-price demand, leading to margin expansion despite tariff pressures source
• Gross margin expanded to 73.7% in the quarter source
• Adjusted operating margin widened to 18.7% source