RL · 10-Q · 2026Q3 · Full report

Restructuring Charges

RALPH LAUREN CORP · 2026-11-05 · Importance 65 · Surprise 82 · In source text

The company recorded $63.2 million of restructuring and other charges, net, in the three months ended September 26, 2026, up $25.9 million from $37.3 million in the prior-year quarter. Charges included $4.0 million of severance and benefits costs and $23.9 million related to the Next Generation Transformation project. The company also recorded $33.2 million of charitable donations funded by IEEPA tariff refunds. The transformation project is a multi-year global effort to redesign processes, implement technology systems, automate distribution-center operations, and roll out merchandise allocation and demand-planning tools.

Key facts

• Six-month net restructuring-related and other charges totaled $4.4 million in 2026 and $56.6 million in 2025, reducing net income by $4.9 million ($0.08 per diluted share) and $44.7 million ($0.71 per diluted share), respectively. source
• Six-month net restructuring charges were $7.0 million in 2026 and $15.9 million in 2025; charges related to the Next Generation Transformation project were $44.7 million and $36.7 million, respectively. source
• Six-month results were negatively impacted by net restructuring-related and certain other charges of $4.4 million in 2026 and $56.6 million in 2025, reducing net income after tax by $4.9 million and $44.7 million, respectively. source
• Net restructuring-related and other charges benefited quarterly net income by $13.9 million, or $0.23 per diluted share, in 2026; in 2025 they reduced net income by $29.3 million, or $0.47 per diluted share. source
• Three-month results in 2026 included $19.1 million of net restructuring-related charges and certain other benefits that increased net income after tax by $13.9 million; 2025 results included $37.3 million of net restructuring-related and certain other charges that reduced net income after tax by $29.3 million. source
• Net restructuring-related and certain other charges negatively affected operating results by $4.4 million in the six months ended September 26, 2026 and $56.6 million in the six months ended September 27, 2025. source
• Six-month diluted EPS was reduced by $0.08 per share in 2026 and $0.71 per share in 2025 due to net restructuring-related and certain other charges. source
• Three-month diluted EPS was favorably impacted by $0.23 per share in 2026 and negatively impacted by $0.47 per share in 2025 due to net restructuring-related and certain other charges (benefits). source

Impact estimates