RL · 10-Q · 2026Q2 · Full report

Operating Expense Trends

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

SG&A increased $127.6 million, or 13.4%, to $1.077 billion for the three months ended June 27, 2026, including $4.4 million of unfavorable foreign currency effects. SG&A declined 20 basis points as a percentage of revenue to 55.0% because higher revenue provided operating leverage. The largest dollar increases were compensation-related expenses of $48.1 million, marketing and advertising of $33.0 million, and rent and occupancy of $24.3 million. Corporate expenses increased $25.2 million to $190.0 million, primarily because compensation-related expenses increased $25.9 million and staff-related expenses increased $2.9 million.

Key facts

• SG&A expenses for the three months ended June 27, 2026: $1.077 billion, an increase of $127.6 million or 13.4%. source
• Corporate expenses increased by $25.2 million to $190.0 million during the three months ended June 27, 2026, primarily due to higher compensation-related expenses of $25.9 million and staff-related expenses of $2.9 million, partly offset by higher intercompany sourcing commission of $3.6 million. source
• Breakdown of the $127.6 million increase in SG&A during the three months ended June 27, 2026: Compensation-related expenses $48.1 million; Marketing and advertising $33.0 million; Rent and occupancy $24.3 million; Staff-related expenses $5.9 million; Selling-related expenses $4.5 million; Other $11.8 million. source
• Share withholdings in satisfaction of tax obligations related to vesting of stock-based compensation awards: $75.1 million. source
• SG&A expenses as a percentage of net revenues for the three months ended June 27, 2026: 55.0%, a decline of 20 basis points from prior year. source
• There have been no significant changes in the application of critical accounting policies since March 28, 2026. source

Impact estimates