RL · 10-Q · 2026Q2 · Full report

Competition and Pricing Pressure

RALPH LAUREN CORP · 2026-08-06 · Importance 10 · Surprise 6

Ralph Lauren describes the retail environment as competitive and uncertain, with retailers in the U.S. and Europe using promotions to drive traffic and conversion while reducing elevated inventory levels. The department-store sector continues to experience consolidations, restructurings, bankruptcies, ownership changes, and store closures. Despite these pressures, Ralph Lauren is pursuing brand elevation and pricing actions to increase average unit retail and brand equity. High-teens AUR growth in North America and mid-teens AUR growth in Asia supported revenue and gross-margin improvement.

Key facts

• The company states that many retailers, particularly in the U.S. and Europe, continue to resort to promotional activity to reduce elevated inventory levels. source