RL · 10-Q · 2026Q2 · Full report

Operating Income and Margins

RALPH LAUREN CORP · 2026-08-06 · Importance 59 · Surprise 48 · No source text

Operating income increased $68.8 million, or 25.2%, to $342.4 million, and operating margin expanded 160 basis points to 17.5% for the quarter ended June 27, 2026. North America operating margin increased 240 basis points to 23.1%, while Asia margin increased 280 basis points to 33.5%; Europe margin remained 26.4%. The consolidated improvement reflected higher gross margin and SG&A leverage, while corporate expenses rose $25.2 million and restructuring charges rose $5.5 million.

Key facts

• Operating income for the three months ended June 27, 2026: $342.4 million, up $68.8 million or 25.2% from prior year. source
• Net income for the three months ended June 27, 2026: $262.2 million. source
• Operating income by segment for the three months ended June 27, 2026: North America $170.9 million (23.1% margin); Europe $156.9 million (26.4% margin); Asia $197.7 million (33.5% margin); Other non-reportable segments $31.7 million (88.6% margin); Total segment operating income $557.2 million. source
• Net income for the three months ended June 28, 2025: $220.4 million. source
• Operating income as a percentage of net revenues for the three months ended June 27, 2026: 17.5%, a 160 basis point increase from prior year. source
• Operating margin improvements by segment: North America improved by 240 basis points; Europe was flat (0 bps change) with 40 basis points favorable FX impact; Asia improved by 280 basis points, inclusive of a favorable 10 basis points related to foreign currency effects. source
• Net income per diluted share for the three months ended June 27, 2026: $4.28. source
• Net income per diluted share for the three months ended June 28, 2025: $3.52. source

Impact estimates