RL · 10-Q · 2026Q3 · Full report

Income Tax Rate Changes

RALPH LAUREN CORP · 2026-11-05 · Importance 24 · Surprise 14

For the six months ended September 26, 2026, the effective tax rate rose to 21.5% from 17.8% a year earlier, a 370-basis-point increase. The income tax provision increased by $59.7 million to $152.6 million, driven by higher pretax income and the higher effective rate. Management attributed the rate increase to uncertain tax positions, compensation-related tax adjustments, a lower benefit from foreign-derived deduction eligible income, and earnings generated in higher-tax jurisdictions, partly offset by permanent adjustments and tax credits.

Key facts

• For the six months ended September 26, 2026, the income tax provision was $152.6 million and the effective tax rate was 21.5%, compared with $92.9 million and 17.8%, respectively, for the prior-year period. source
• The six-month income tax provision increased $59.7 million, primarily due to higher pretax income and a 370-basis-point increase in the effective tax rate. source
• For the three months ended September 26, 2026, the income tax provision was $72.6 million and the effective tax rate was 19.7%, compared with $35.3 million and 14.6%, respectively, for the three months ended September 27, 2025. source
• The three-month income tax provision increased by $37.3 million, primarily due to a 510-basis-point increase in the effective tax rate and higher pretax income. source
• The three-month effective tax rate increase primarily reflected the net unfavorable impact of uncertain tax positions year over year and compensation-related tax adjustments, partly offset by favorable permanent adjustments and tax credits. source
• The six-month effective tax rate increase reflected uncertain tax positions, compensation-related tax adjustments, lower benefit from foreign-derived deduction eligible income, and earnings in higher-taxed jurisdictions, partly offset by permanent adjustments and tax credits. source