RL · 10-Q · 2026Q3 · Full report
Operating Expense Trends
RALPH LAUREN CORP · 2026-11-05 · Importance 41 · Surprise 22 · No source text
SG&A expenses increased $117.6 million, or 10.9%, to $1.201 billion in the three months ended September 26, 2026, including favorable foreign currency effects of $2.7 million. SG&A rose to 54.8% of revenue from 53.9%, a 90-basis-point increase, as higher marketing, rent and occupancy, and other selling expenses partly offset operating leverage from revenue growth. Marketing and advertising increased $33.0 million, rent and occupancy $25.7 million, selling-related expenses $11.4 million, and consulting and professional fees $11.3 million. Shipping and handling increased $9.3 million, while staff-related expenses increased $4.1 million.
Key facts
- Six-month SG&A expenses increased $245.2 million, or 12.1%, to $2.278 billion, including $1.7 million of unfavorable foreign currency effects. source
- SG&A as a percentage of revenue increased 90 basis points to 54.8% for the quarter and 30 basis points to 54.8% for the six-month period, primarily due to higher marketing, rent and occupancy, and other selling expenses, partly offset by revenue leverage. source
- Quarterly SG&A increased $117.6 million, or 10.9%, to $1.201 billion, including $2.7 million of favorable foreign currency effects. source
- Corporate expenses decreased $75.0 million to $155.4 million, primarily because of $82.3 million of IEEPA tariff-refund adjustments and $8.9 million lower compensation, partly offset by $10.9 million higher consulting and professional fees. source
- Corporate expenses decreased $49.8 million to $345.4 million in the six months ended September 26, 2026, primarily due to $82.3 million of non-routine gross-profit adjustments related to IEEPA tariff refunds, partly offset by increases of $17.0 million in compensation-related expenses and $12.7 million in consulting and professional fees. source
- The company recorded $33.2 million of charitable-donation charges in the quarter ended September 26, 2026, funded by part of the IEEPA tariff refunds. source
- Quarterly SG&A increase included $33.0 million marketing and advertising, $25.7 million rent and occupancy, $11.4 million selling-related, and $11.3 million consulting and professional fees. source
- SG&A as a percentage of revenue increased to 54.8% from 54.5%, a 30-basis-point increase largely due to higher marketing investments, partly offset by operating leverage on higher revenue. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -11.2% | Six-month SG&A expenses increased $245.2 million, or 12.1%, to $2.278 billion, including $1.7 million of unfavorable foreign currency… |
| operating_income | negative | realized | -5.4% | Quarterly SG&A increased $117.6 million, or 10.9%, to $1.201 billion, including $2.7 million of favorable foreign currency effects. |
| margin | negative | realized | -0.9% | SG&A as a percentage of revenue increased 90 basis points to 54.8% for the quarter and 30 basis points to 54.8% for the six-month period,… |
| margin | negative | realized | -0.3% | SG&A as a percentage of revenue increased 90 basis points to 54.8% for the quarter and 30 basis points to 54.8% for the six-month period,… |