RL · 10-Q · 2026Q2 · Full report

Gross Margin Drivers

RALPH LAUREN CORP · 2026-08-06 · Importance 54 · Surprise 40

Gross profit increased $201.9 million, or 16.2%, to $1.444 billion in the quarter ended June 27, 2026. Gross margin expanded 140 basis points to 73.7%, including approximately 10 basis points from favorable foreign currency effects. Mid-teens average unit retail growth and favorable channel and geographic mix shifts drove the remaining 130 basis points of improvement, more than offsetting tariff and other product-cost pressure.

Key facts

• Increase in gross profit (dollars) for the three months ended June 27, 2026: $201.9 million, or 16.2%, to $1.444 billion. source
• AUR (average unit retail) growth described as mid-teens contributed to gross margin improvement in Asia comparable store sales and to gross margin drivers overall. source
• Gross profit as a percentage of net revenues for the three months ended June 27, 2026: 73.7%. source
• Gross profit as a percentage of net revenues for the three months ended June 28, 2025: 72.3%. source