RL · 8-K · 20260806PR053896
Gross Margin Drivers
RALPH LAUREN CORP · 2026-08-06 · Importance 54 · Surprise 40 · No source text
First-quarter gross profit increased to $1,444.2 million from $1,242.3 million. Gross margin expanded 140 basis points year over year to 73.7%, or 73.6% in constant currency. AUR growth and favorable channel and geographic mix shifts drove the expansion, more than offsetting incremental tariff and other product-cost pressure. Strong full-price demand and lower promotions supported the margin improvement.
Key facts
- First quarter gross profit: $1.444 billion and gross margin: 73.7%, up 140 basis points vs prior year. source
- Fiscal 2027 gross and operating margin expansion expected to be stronger in first half due to timing of marketing activations and a lower prevailing tariff rate through the first half. source
- Gross margin expansion was driven by AUR growth and favorable channel and geographic mix, more than offsetting incremental pressure from tariffs and other product costs. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| margin | positive | realized | +1.4% | First quarter gross profit: $1.444 billion and gross margin: 73.7%, up 140 basis points vs prior year. |
| margin | positive | committed | — | Fiscal 2027 gross and operating margin expansion expected to be stronger in first half due to timing of marketing activations and a lower… |