RL · 10-Q · 2026Q2 · Full report

Income Tax Rate Changes

RALPH LAUREN CORP · 2026-08-06 · Importance 52 · Surprise 56

The income tax provision increased $22.4 million, or 39.0%, to $80.0 million for the three months ended June 27, 2026. The effective tax rate increased 270 basis points to 23.4% from 20.7%, driven by higher pretax income and unfavorable tax impacts from the deduction for foreign-derived eligible income and earnings in higher-tax jurisdictions. Lower income-tax reserves associated with certain audits partially offset the rate increase.

Key facts

• Effective tax rate for the three months ended June 27, 2026: 23.4%, with income tax provision $80.0 million; for the three months ended June 28, 2025: effective tax rate 20.7% with income tax provision $57.6 million. source
• The increase in the income tax provision by $22.4 million was primarily driven by an increase in pretax income and a 270 basis point increase in the effective tax rate. source