RL · 10-Q · 2026Q2 · Full report

Trade Policy and Tariffs

RALPH LAUREN CORP · 2026-08-06 · Importance 47 · Surprise 60

In February 2026, the U.S. Supreme Court invalidated IEEPA tariffs previously applied to Ralph Lauren’s foreign imports, while the U.S. subsequently announced additional tariffs under other trade authorities. The U.S. Court of International Trade ordered refunds of previously collected IEEPA tariffs in March 2026, and U.S. Customs and Border Protection announced a phased refund process in April 2026; Ralph Lauren has submitted eligible refund claims, but the amount, timing, and approval remain uncertain. Tariffs and other product costs pressured gross margin during the quarter, although AUR growth and mix more than offset the impact; management stated that significant supply-chain tariff increases could negatively affect profitability.

Key facts

• The Company submitted refund claims for eligible IEEPA tariffs previously paid, but the ultimate amount and timing of collection and approval remain uncertain. source
• The net favorable change in working capital was primarily driven by a year-over-year decrease in inventory levels, with prior year's inventory balance elevated due to tariff impacts in North America and earlier timing of deliveries in Europe. source