RALPH LAUREN CORP

Previous wording

•the impact to our business resulting from the potential imposition of additional tariffs, duties, or taxes, changes to existing trade agreements, and other charges or barriers to trade, including those recently announced by the U.S. and any responding retaliatory actions implemented by impacted countries, and any related impact to global stock markets, foreign currency exchange rates, and existing inflationary pressures, as well as our ability to implement mitigating sourcing strategies;

Current wording

•the impact to our business resulting from the potential imposition of additional tariffs, duties, or taxes, changes to existing trade agreements, and other charges or barriers to trade, including those recently imposed by the U.S. following the U.S. Supreme Court ruling against the tariffs previously announced under the authority of the International Emergency Economic Powers Act ("IEEPA") and resulting potential refund status of the IEEPA tariffs, any retaliatory measures implemented by impacted countries, and any related impact to global stock markets, foreign currency exchange rates, and existing inflationary pressures, as well as our ability to implement mitigating sourcing strategies;

Previous wording

•the impact of economic, political, and other conditions on us, our customers, suppliers, vendors, and lenders, including potential business disruptions related to ongoing military conflicts taking place in various parts of the world, most notably the Russia-Ukraine and Israel-Hamas wars, the U.S.-Venezuela conflict, militant attacks on cargo vessels in the Red Sea, and other recent hostilities in the Middle East, civil and political unrest, diplomatic tensions between the U.S. and other countries and any resulting anti-American sentiment, high interest rates, and bank failures, among other factors described herein;

Current wording

•the impact of economic, political, and other conditions on us, our customers, suppliers, vendors, and lenders, including potential business disruptions related to ongoing military conflicts taking place in various parts of the world, most notably the conflicts involving Iran and other ongoing hostilities in the Middle East, civil and political unrest, diplomatic tensions between the U.S. and other countries and any resulting anti-American sentiment, high interest rates, and bank failures, among other factors described herein;

Previous wording

•the impact to our business resulting from a recession or changes in consumers' ability, willingness, or preferences to purchase discretionary items and luxury retail products, which tends to decline during recessionary periods, and our ability to accurately forecast consumer demand, the failure of which could result in either a build-up or shortage of inventory;

Current wording

•the impact to our business resulting from a prolonged slowdown in economic conditions or changes in consumers' ability, willingness, or preferences to purchase discretionary items and luxury retail products, which tends to decline during periods of economic downturn, and our ability to accurately forecast consumer demand, the failure of which could result in either a build-up or shortage of inventory;

Previous wording

•the potential impact to our business resulting from supply chain disruptions, including those caused by capacity constraints, closed factories and/or labor shortages (stemming from pandemic diseases, labor disputes, strikes, or otherwise), man-made or natural disasters, scarcity of raw materials, port congestion, and scrutiny or detention of goods produced in certain territories resulting from laws, regulations, or trade restrictions, such as those imposed by the Uyghur Forced Labor Prevention Act ("UFLPA") or the Countering America's Adversaries Through Sanctions Act ("CAATSA"), which could result in shipment approval delays leading to inventory shortages and lost sales, as well as potential shipping delays, inventory shortages, and/or higher freight costs resulting from port strikes, the recent Red Sea crisis, and/or disruptions to major waterways such as the Suez and Panama canals;

Current wording

•the potential impact to our business resulting from supply chain disruptions, including those caused by capacity constraints, closed factories and/or labor shortages (stemming from pandemic diseases, labor disputes, strikes, or otherwise), man-made or natural disasters, scarcity of raw materials, port congestion, and scrutiny or detention of goods produced in certain territories resulting from laws, regulations, or trade restrictions, such as those imposed by the Uyghur Forced Labor Prevention Act ("UFLPA") or the Countering America's Adversaries Through Sanctions Act ("CAATSA"), which could result in shipment approval delays leading to inventory shortages and lost sales, as well as potential shipping delays, inventory shortages, and/or higher freight and other operating costs resulting from port strikes, disruptions to major waterways, and/or increases in oil and other energy prices;

Previous wording

•our ability to achieve anticipated operating enhancements and cost reductions from our restructuring plans, as well as the impact to our business resulting from restructuring-related charges, which may be dilutive to our earnings in the short term;

Current wording

•our ability to achieve anticipated operating enhancements and cost reductions from our strategic initiatives and restructuring plans, as well as the resulting impact to our business, which may be dilutive to our earnings in the short term;

Previous wording

In this Form 10-Q, references to "Ralph Lauren," "ourselves," "we," "our," "us," and the "Company" refer to Ralph Lauren Corporation and its subsidiaries, unless the context indicates otherwise. We utilize a 52-53 week fiscal year ending on the Saturday closest to March 31. As such, fiscal year 2026 will end on March 28, 2026 and will be a 52-week period ("Fiscal 2026"). Fiscal year 2025 ended on March 29, 2025 and was also a 52-week period ("Fiscal 2025"). The third quarter of Fiscal 2026 ended on December 27, 2025 and was a 13-week period. The third quarter of Fiscal 2025 ended on December 28, 2024 and was also a 13-week period.

Current wording

In this Form 10-Q, references to "Ralph Lauren," "ourselves," "we," "our," "us," and the "Company" refer to Ralph Lauren Corporation and its subsidiaries, unless the context indicates otherwise. We utilize a 52-53 week fiscal year ending on the Saturday closest to March 31. As such, fiscal year 2027 will end on April 3, 2027 and will be a 53-week period ("Fiscal 2027"). Fiscal year 2026 ended on March 28, 2026 and was a 52-week period ("Fiscal 2026"). The first quarter of Fiscal 2027 ended on June 27, 2026 and was a 13-week period. The first quarter of Fiscal 2026 ended on June 28, 2025 and was also a 13-week period.

Previous wording

•Overview. This section provides a general description of our business, global economic conditions and industry trends, and a summary of our financial performance for the three-month and nine-month periods ended December 27, 2025. In addition, this section includes a discussion of recent developments and transactions affecting comparability that we believe are important in understanding our results of operations and financial condition, and in anticipating future trends.

Current wording

•Overview. This section provides a general description of our business, global economic conditions and industry trends, and a summary of our financial performance for the three-month period ended June 27, 2026. In addition, this section includes a discussion of recent developments and transactions affecting comparability that we believe are important in understanding our results of operations and financial condition, and in anticipating future trends.

Previous wording

•Results of operations. This section provides an analysis of our results of operations for the three-month and nine-month periods ended December 27, 2025 as compared to the three-month and nine-month periods ended December 28, 2024.

Current wording

•Results of operations. This section provides an analysis of our results of operations for the three-month period ended June 27, 2026 compared to the three-month period ended June 28, 2025.

Previous wording

•Financial condition and liquidity. This section provides a discussion of our financial condition and liquidity as of December 27, 2025, which includes (i) an analysis of our financial condition as compared to the prior fiscal year-end; (ii) an analysis of changes in our cash flows for the nine months ended December 27, 2025 as compared to the nine months ended December 28, 2024; (iii) an analysis of our liquidity, including the availability under our commercial paper borrowing program and credit facilities, our supplier finance program, outstanding debt and covenant compliance, common stock repurchases, and payments of dividends; and (iv) a description of any material changes in our material cash requirements since March 29, 2025.

Current wording

•Financial condition and liquidity. This section provides a discussion of our financial condition and liquidity as of June 27, 2026, which includes (i) an analysis of our financial condition as compared to the prior fiscal year-end; (ii) an analysis of changes in our cash flows for the three months ended June 27, 2026 compared to the three months ended June 28, 2025; (iii) an analysis of our liquidity, including the availability under our commercial paper borrowing program and credit facilities, our supplier finance program, outstanding debt and covenant compliance, common stock repurchases, and payments of dividends; and (iv) a description of any material changes in our material cash requirements since March 28, 2026.

Previous wording

Our Company is a global leader in the design, marketing, and distribution of luxury lifestyle products, including apparel, footwear & accessories, home, fragrances, and hospitality. Our long-standing reputation and distinctive image have been developed across a wide range of products, brands, distribution channels, and international markets. Our brand names include Ralph Lauren, Ralph Lauren Collection, Ralph Lauren Purple Label, Double RL, Polo Ralph Lauren, Lauren Ralph Lauren, Polo Ralph Lauren Children, and Chaps, among others.

Current wording

Our Company is a global leader in the design, marketing, and distribution of luxury lifestyle products, including apparel, handbags, footwear & accessories, fragrances, home, and hospitality. Our long-standing reputation and distinctive image have been developed across a wide range of products, brands, distribution channels, and international markets. Our brand names include Ralph Lauren, Ralph Lauren Collection, Ralph Lauren Purple Label, Double RL, Polo Ralph Lauren, Lauren Ralph Lauren, RLX Ralph Lauren, Polo Ralph Lauren Children, and Chaps, among others.

Previous wording

•North America— Our North America segment, representing approximately 43% of our Fiscal 2025 net revenues, primarily consists of sales of our Ralph Lauren branded products made through our retail and wholesale businesses primarily in the U.S. and Canada. In North America, our retail business is primarily comprised of our Ralph Lauren stores, our outlet stores, and our digital commerce sites, www.RalphLauren.com and www.RalphLauren.ca. Our wholesale business in North America is comprised primarily of sales to department stores and, to a lesser extent, specialty stores.

Current wording

•North America— Our North America segment, representing approximately 41% of our Fiscal 2026 net revenues, primarily consists of sales of our Ralph Lauren branded products made through our retail and wholesale businesses primarily in the U.S. and Canada. In North America, our retail business is primarily comprised of our Ralph Lauren stores, our outlet stores, and our digital commerce sites, www.RalphLauren.com and www.RalphLauren.ca. Our wholesale business in North America is comprised primarily of sales to department stores and, to a lesser extent, specialty stores.

Previous wording

•Asia— Our Asia segment, representing approximately 24% of our Fiscal 2025 net revenues, primarily consists of sales of our Ralph Lauren branded products made through our retail and wholesale businesses in Asia, Australia, and New Zealand. Our retail business in Asia is primarily comprised of our Ralph Lauren stores, our outlet stores, our concession-based shop-within-shops, and our various digital commerce sites. In addition, we sell our products online through various third-party digital partner commerce sites. Our wholesale business in Asia is comprised primarily of sales to department stores and various third-party digital and licensee partners.

Current wording

•Asia— Our Asia segment, representing approximately 26% of our Fiscal 2026 net revenues, primarily consists of sales of our Ralph Lauren branded products made through our retail and wholesale businesses in Asia, Australia, and New Zealand. Our retail business in Asia is primarily comprised of our Ralph Lauren stores, our outlet stores, our concession-based shop-within-shops, and our various digital commerce sites. In addition, we sell our products online through various third-party digital partner commerce sites. Our wholesale business in Asia is comprised primarily of sales to department stores and various third-party digital and licensee partners.

Previous wording

Approximately 57% of our Fiscal 2025 net revenues were earned outside of the U.S. See Note 16 to the accompanying consolidated financial statements for further discussion of our segment reporting structure.

Current wording

Approximately 59% of our Fiscal 2026 net revenues were earned outside of the U.S. See Note 16 to the accompanying consolidated financial statements for further discussion of our segment reporting structure.

Previous wording

Our business is typically affected by seasonal trends, with higher levels of retail sales in our second and third fiscal quarters and higher wholesale sales in our second and fourth fiscal quarters. These trends result primarily from the timing of key vacation travel, back-to-school, and holiday shopping periods impacting our retail business and timing of seasonal wholesale shipments. As a result of changes in our business, consumer spending patterns, and the macroeconomic environment, including those resulting from pandemic diseases and other catastrophic events, historical quarterly operating trends and working capital requirements may not be indicative of our future performance. In addition, fluctuations in sales, operating income (loss), and cash flows in any fiscal quarter may be affected by other events affecting retail sales, such as changes in weather patterns. Accordingly, our operating results and cash flows for the three-month and nine-month periods ended December 27, 2025 are not necessarily indicative of the operating results and cash flows that may be expected for the full Fiscal 2026.

Current wording

Our business is typically affected by seasonal trends, with higher levels of retail sales in our second and third fiscal quarters and higher wholesale sales in our second and fourth fiscal quarters. These trends result primarily from the timing of key vacation travel, back-to-school, and holiday shopping periods impacting our retail business and timing of seasonal wholesale shipments. As a result of changes in our business, consumer spending patterns, and the macroeconomic environment, including those resulting from pandemic diseases and other catastrophic events, historical quarterly operating trends and working capital requirements may not be indicative of our future performance. In addition, fluctuations in sales, operating income (loss), and cash flows in any fiscal quarter may be affected by other events affecting retail sales, such as changes in weather patterns. Accordingly, our operating results and cash flows for the three-month period ended June 27, 2026 are not necessarily indicative of the operating results and cash flows that may be expected for the full Fiscal 2027.

Previous wording

During Fiscal 2025, we began a large-scale, multi-year global project that is expected to significantly transform the way in which we operate our business and further enable our long-term strategic pivot towards a global direct-to-consumer-oriented model (the "Next Generation Transformation project" or "NGT project"). The NGT project is being completed in phases and involves the redesign of certain end-to-end processes and the implementation of a suite of technology systems on a global scale. Such efforts are expected to result in significant process improvements and the creation of synergies across core areas of operations, including merchandise buying and planning, procurement, inventory management, retail and wholesale operations, and financial planning and reporting, better enabling us to optimize inventory levels and increase the speed with which we react to changes in consumer demand across markets, among other benefits.

Current wording

We began a multi-year global project during our fiscal year ended March 30, 2024 that is expected to significantly transform the way in which we operate our business and further enable our long-term strategic pivot towards a global direct-to-consumer-oriented model (the "Next Generation Transformation project" or "NGT project"). The NGT project will span the next several years, with implementation occurring in phases by region and/or capability, and involves the redesign of certain end-to-end processes and the implementation of a suite of technology systems on a global scale. These efforts are expected to result in significant process improvements and the creation of synergies across core areas of operations, as well as financial planning and reporting, better enabling us to optimize inventory levels and increase the speed with which we react to changes in consumer demand across markets, among other benefits.

Previous wording

In connection with the current phase of the NGT project, we incurred other charges of $25.0 million and $61.7 million during the three-month and nine-month periods ended December 27, 2025, respectively, and $9.1 million and $17.1 million during the three-month and nine-month periods ended December 28, 2024, respectively, which were recorded within restructuring and other charges, net in the consolidated statements of operations.

Current wording

In connection with the NGT project, we incurred other charges of $20.8 million and $11.0 million during the three-month periods ended June 27, 2026 and June 28, 2025, respectively, which were recorded within restructuring and other charges, net in the consolidated statements of operations.

Previous wording

The global supply chain has also been negatively impacted by various factors, including disruptions in the Red Sea as discussed above. Although our business has not been significantly impacted by such disruptions, we have experienced some shipping delays impacting the timing of inventory receipts, and if such disruptions were to continue over a prolonged period, it could result in further inventory receipt delays and/or higher freight costs in the near-term and beyond.

Current wording

In addition to evolving trade policies, the global economy has been negatively impacted by ongoing military conflicts, including those involving Iran and other hostilities in the Middle East, which have increased uncertainty around global energy and key shipping routes. Although our ongoing operations in the Middle East are not material, our business has been, and may continue to be, affected by the broader macroeconomic and supply chain implications of these conflicts and related disruptions, including higher energy, freight, and transportation costs, inflationary pressures, unfavorable foreign currency exchange rates, financial market volatility, and periodic shipping delays, among other factors. While our business has not been significantly impacted by such disruptions, we have experienced some shipping delays affecting the timing of inventory receipts. The duration and potential escalation of these conflicts and related disruptions remain uncertain and could result in further inventory receipt delays and/or higher freight and transportation costs in the near-term and beyond.

Previous wording

Other recent economic conditions, including ongoing inflationary pressures, organized labor disputes, high interest rates, significant foreign currency volatility, and military conflicts (as discussed below), continue to impact consumer discretionary income levels, spending, and sentiment in the U.S. and beyond. In response to such pressures, as well as to reduce elevated inventory levels, many retailers (particularly in the U.S.) continue to resort to promotional activity in an attempt to offset traffic declines and increase conversion. Furthermore, the department store sector has also experienced consolidations, restructurings, bankruptcies, and other ownership changes in recent times, as well as an increase in store closures.

Current wording

Overall economic conditions, including inflationary pressures, relatively elevated interest rates, foreign currency volatility, and organized labor disputes, continue to impact consumer discretionary income levels, spending, and sentiment in the U.S. and globally. Collectively, these conditions have contributed to a competitive and uncertain retail operating environment. In response to such pressures, and to reduce elevated inventory levels, many retailers (particularly in the U.S. and Europe) continue to resort to promotional activity to support traffic conversion. Furthermore, the department store sector continues to experience consolidations, restructurings, bankruptcies, other ownership changes, and store closures.

Previous wording

We have implemented various global strategies to address many of these challenges and continue to build a foundation for long-term profitable growth by strengthening our consumer-facing areas and driving a more efficient operating model. We continue to monitor the current geopolitical landscape, including the potential impact of changes to tariffs. We have taken proactive measures in recent years to diversify our supply chain from a geographic perspective and believe we can further mitigate potential cost pressures associated with new tariffs through a combination of our disciplined inventory management, leveraging our relationships with suppliers to reduce product costs, our ability to change country of origin, and pricing actions. However, our profitability will be negatively impacted should tariffs increase significantly across our supply chain. Regarding mitigating inflationary pressures, our strategy includes numerous levers, including our ability to effectively increase prices, leveraging our diversified supply chain and strong supplier relationships, and leveraging our in-house quality control to reduce time and cost from the manufacturing process, among other efforts. Despite the competitive environment, we plan to continue driving our broader long-term strategy of brand elevation, which includes multiple levers to continue driving average unit retail growth and brand equity.

Current wording

In response to these macroeconomic, industry, and geopolitical pressures, we have implemented various global strategies to address many of these challenges and continue to build a foundation for long-term profitable growth by strengthening our consumer-facing areas and driving a more efficient operating model. We have also proactively diversified our supply chain from a geographic perspective and believe we can further mitigate cost pressures through disciplined inventory management, supplier negotiations, our ability to change country of origin, and pricing actions. However, the tariff environment remains dynamic and unpredictable, and significant increases in tariffs across our supply chain could negatively impact our profitability. Despite the competitive environment, we remain focused on executing our broader long-term strategy of brand elevation, which includes multiple levers to continue driving average unit retail growth and brand equity. We continue to monitor the geopolitical and macroeconomic environment, including evolving trade policies, tariffs, and disruption or volatility affecting key shipping routes, and adjust our operating strategies to help mitigate the related impacts on our results of operations.

Previous wording

During the three months ended December 27, 2025, we reported net revenues of $2.406 billion, net income of $361.6 million, and net income per diluted share of $5.82, as compared to net revenues of $2.143 billion, net income of $297.4 million, and net income per diluted share of $4.66 during the three months ended December 28, 2024. During the nine months ended December 27, 2025, we reported net revenues of $6.136 billion, net income of $789.5 million, and net income per diluted share of $12.66, as compared to net revenues of $5.382 billion, net income of $613.9 million, and net income per diluted share of $9.57 during the nine months ended December 28, 2024. The comparability of our operating results has been affected by net restructuring-related charges and certain other charges, as well as foreign currency volatility. Our operating results are also susceptible to changes in macroeconomic conditions.

Current wording

During the three months ended June 27, 2026, we reported net revenues of $1.960 billion, net income of $262.2 million, and net income per diluted share of $4.28, as compared to net revenues of $1.719 billion, net income of $220.4 million, and net income per diluted share of $3.52 during the three months ended June 28, 2025. The comparability of our operating results has been affected by net restructuring-related charges and certain other charges (benefits), as well as foreign currency volatility. Our operating results are also susceptible to changes in macroeconomic conditions.

Previous wording

Our operating performance for the three-month and nine-month periods ended December 27, 2025 as compared to the prior fiscal year periods reflected revenue growth of 12.2% and 14.0%, respectively, on a reported basis and 10.0% and 11.7%, respectively, on a constant currency basis, as defined within "Transactions and Trends Affecting Comparability of Results of Operations and Financial Condition" below. Net revenues reflected growth across all of our reportable segments.

Current wording

Our operating performance for the three-month period ended June 27, 2026 as compared to the prior fiscal year period reflected revenue growth of 14.0% on a reported basis and 13.4% on a constant currency basis, as defined within "Transactions and Trends Affecting Comparability of Results of Operations and Financial Condition" below. Net revenues reflected growth across all of our reportable segments.

Previous wording

Our gross profit as a percentage of net revenues increased by 150 basis points to 69.9% during the three months ended December 27, 2025 and by 140 basis points to 69.9% during the nine months ended December 27, 2025, as compared to the prior fiscal year periods, primarily driven by average unit retail ("AUR") growth, favorable product mix, favorable foreign currency effects, and lower cotton costs, more than offsetting pressure from tariffs and non-cotton product costs.

Current wording

Our gross profit as a percentage of net revenues increased by 140 basis points to 73.7% during the three months ended June 27, 2026 as compared to the prior fiscal year period, primarily driven by average unit retail ("AUR") growth, and, to a lesser extent, favorable channel and geographic mix shifts, more than offsetting pressure from tariffs and other product costs.

Previous wording

Selling, general, and administrative ("SG&A") expenses as a percentage of net revenues declined by 70 basis points to 49.0% during the three months ended December 27, 2025 and by 110 basis points to 52.3% during the nine months ended December 27, 2025, as compared to the prior fiscal year periods, largely attributable to operating leverage on higher net revenues despite higher compensation-related expenses, marketing investments, and variable selling expenses.

Current wording

Selling, general, and administrative ("SG&A") expenses as a percentage of net revenues during the three months ended June 27, 2026 declined by 20 basis points to 55.0% as compared to the prior fiscal year period, largely attributable to operating leverage on higher net revenues.

Previous wording

Net income increased by $64.2 million to $361.6 million during the three months ended December 27, 2025 as compared to the three months ended December 28, 2024, primarily due to an $81.6 million increase in our operating income, partially offset by a $15.9 million increase in our income tax provision. Net income per diluted share increased by $1.16 to $5.82 per share during the three months ended December 27, 2025 as compared to the three months ended December 28, 2024, primarily driven by the higher level of net income and lower weighted-average diluted shares outstanding. Net income increased by $175.6 million to $789.5 million during the nine months ended December 27, 2025 as compared to the nine months ended

Current wording

Net income increased by $41.8 million to $262.2 million during the three months ended June 27, 2026 as compared to the three months ended June 28, 2025, primarily due to a $68.8 million increase in our operating income, partly offset by a $22.4 million increase in our income tax provision. Net income per diluted share increased by $0.76 to $4.28 per share during the three months ended June 27, 2026 as compared to the three months ended June 28, 2025, driven by the higher level of net income and lower weighted-average diluted shares outstanding.

Previous wording

We ended the third quarter of Fiscal 2026 in a net cash and short-term investments position (calculated as cash and cash equivalents, plus short-term investments, less total debt) of $1.013 billion, as compared to $940.4 million as of the end of Fiscal 2025. The increase in our net cash and short-term investments position was primarily due to our operating cash flows of $1.009 billion and the favorable effect of exchange rate changes of $61.9 million, primarily related to our cash and cash equivalents, partially offset by our use of cash to support Class A common stock repurchases of $473.4 million, including withholdings in satisfaction of tax obligations for stock-based compensation awards, to invest in our business through $356.7 million in capital expenditures, and to make dividend payments of $161.3 million.

Current wording

As of June 27, 2026, net cash and short-term investments position (calculated as cash and cash equivalents, plus short-term investments, less total debt) was $702.2 million, as compared to $826.1 million as of the end of Fiscal 2026. The decrease in our net cash and short-term investments position was primarily due to our use of cash to support Class A common stock repurchases of $325.1 million, including $75.1 million of share withholdings in satisfaction of tax obligations related to the vesting of stock-based compensation awards, to make dividend payments of $54.8 million, to invest in our business through $53.4 million of capital expenditures, and the unfavorable effect of exchange rate changes of $16.5 million, primarily related to our cash and cash equivalents, partly offset by our operating cash flows of $339.3 million.

Previous wording

Net cash provided by operating activities was $1.009 billion during the nine months ended December 27, 2025, as compared to $1.113 billion during the nine months ended December 28, 2024. The net decrease in cash provided by operating activities was due to a net unfavorable change related to our operating assets and liabilities, including our working capital, as compared to the prior fiscal year period, partially offset by an increase in net income before non-cash charges.

Current wording

Net cash provided by operating activities was $339.3 million during the three months ended June 27, 2026, as compared to $176.1 million during the three months ended June 28, 2025. The net increase in cash provided by operating activities was primarily due to a net favorable change related to lower inventory levels as compared to the prior fiscal year period, as well as an increase in net income before non-cash charges.

Previous wording

Our equity increased to $2.888 billion as of December 27, 2025 compared to $2.589 billion as of March 29, 2025 due to our comprehensive income and the net impact of stock-based compensation arrangements, partially offset by our share repurchase activity and dividends declared during the nine months ended December 27, 2025.

Current wording

Our equity decreased to $2.722 billion as of June 27, 2026 compared to $2.841 billion as of March 28, 2026 due to our share repurchase activity and dividends declared during the three months ended June 27, 2026, partly offset by our comprehensive income and the net impact of stock-based compensation arrangements.

Previous wording

The comparability of our operating results for the three-month and nine-month periods ended December 27, 2025 has been affected by certain transactions, including net restructuring-related charges and certain other charges totaling $31.8 million and $88.4 million, respectively, and $12.2 million and $38.0 million during the three-month and nine-month periods ended December 28, 2024, respectively. See Note 7 to the accompanying consolidated financial statements.

Current wording

The comparability of our operating results for the three-month periods ended June 27, 2026 and June 28, 2025 has been affected by certain transactions, including pretax charges incurred in connection with our restructuring activities and certain other benefits (charges), as summarized below (references to "Notes" are to the notes to the accompanying consolidated financial statements):

Previous wording

Net Revenues. Net revenues increased by $262.5 million, or 12.2%, to $2.406 billion during the three months ended December 27, 2025 as compared to the three months ended December 28, 2024, reflecting growth across all of our reportable segments, including favorable foreign currency effects of $47.9 million. On a constant currency basis, net revenues increased by $214.6 million, or 10.0%.

Current wording

Net Revenues. Net revenues increased by $240.7 million, or 14.0%, to $1.960 billion during the three months ended June 27, 2026 as compared to the three months ended June 28, 2025, reflecting growth across our reportable segments, including favorable foreign currency effects of $10.0 million. On a constant currency basis, net revenues increased by $230.7 million, or 13.4%.

Previous wording

The following table summarizes the percentage changes in our consolidated comparable store sales for the three months ended December 27, 2025 as compared to the prior fiscal year period:

Current wording

The following table summarizes the percentage change in our consolidated comparable store sales for the three months ended June 27, 2026 as compared to the prior fiscal year period:

Previous wording

Our global average store count increased by 1 store and concession shop during the three months ended December 27, 2025 compared with the three months ended December 28, 2024, primarily due to new full price store openings in Asia, largely offset by concession shop closures in Asia. The following table details our retail store presence by segment as of the periods presented:

Current wording

Our global average store count increased by 1 store and concession shop during the three months ended June 27, 2026 compared with the three months ended June 28, 2025, primarily due to new full price store openings in Asia, largely offset by concession shop closures also in Asia.

Previous wording

In addition to our stores, we sell products online in North America, Europe, and Asia through our various digital commerce sites, as well as through our Polo mobile apps in the U.S. We also sell products online through various third-party digital partner commerce sites, primarily in Asia.

Current wording

In addition to our stores, we sell products online in North America, Europe, and Asia through our various digital commerce sites, as well as through our Polo mobile apps in the U.S. and Canada. We also sell products online through various third-party digital partner commerce sites, primarily in Asia.

Previous wording

•a $52.6 million increase related to our North America retail business. On a constant currency basis, net revenues increased by $52.1 million, reflecting increases of $49.9 million in comparable store sales and $2.2 million in non-comparable store sales. The increase in our comparable store sales reflected strong double-digit AUR growth, as well as higher traffic, during the three months ended December 27, 2025 as compared to the prior fiscal year period. The following table summarizes the percentage changes in comparable store sales related to our North America retail business:

Current wording

•a $42.2 million increase related to our North America retail business. On a constant currency basis, net revenues increased by $42.1 million, reflecting an increase of $42.0 million in comparable store sales. The increase in our comparable store sales reflected high-teens AUR growth and higher traffic during the three months ended June 27, 2026 as compared to the three months ended June 28, 2025. The following table summarizes the percentage changes in comparable store sales related to our North America retail business:

Previous wording

•a $28.0 million increase related to our North America wholesale business largely driven by improved selling trends and strong replenishment orders.

Current wording

•a $41.9 million increase related to our North America wholesale business, driven by strong selling trends and replenishment orders, including resumed shipments to a luxury wholesale account, and a favorable timing shift of inventory shipments.

Previous wording

The $72.1 million increase in Europe net revenues was driven by:

Current wording

The $39.9 million increase in Europe net revenues was driven by:

Previous wording

•a $40.8 million increase related to our Europe wholesale business largely driven by stronger re-order trends and favorable foreign currency effects of $20.8 million, which more than offset a timing shift of inventory shipments into the first half of Fiscal 2026 and planned reductions within the off-price wholesale channel; and

Current wording

•a $30.8 million increase related to our Europe wholesale business, driven by positive selling trends and a favorable timing shift of inventory shipments, as well as favorable foreign currency effects of $8.3 million; and

Previous wording

•a $31.3 million increase related to our Europe retail business, inclusive of favorable foreign currency effects of $26.0 million. On a constant currency basis, net revenues increased by $5.3 million, reflecting increases of $4.2 million in non-comparable store sales and $1.1 million in comparable store sales. The increase in our comparable store sales reflected mid-single digit AUR growth, as well as higher traffic, during the three months ended December 27, 2025 as compared to the prior fiscal year period. The following table summarizes the percentage changes in comparable store sales related to our Europe retail business:

Current wording

•a $9.1 million increase related to our Europe retail business, inclusive of favorable foreign currency effects of $6.4 million. On a constant currency basis, net revenues increased by $2.7 million, reflecting an increase of $3.7 million in comparable store sales, partly offset by a decrease of $1.0 million in non-comparable store sales. The increase in our comparable store sales reflected low-single digit AUR growth during the three months ended June 27, 2026 as compared to the three months ended June 28, 2025. The following table summarizes the percentage changes in comparable store sales related to our Europe retail business:

Previous wording

The $113.6 million increase in Asia net revenues was primarily driven by:

Current wording

The $115.3 million increase in Asia net revenues was primarily driven by:

Previous wording

•a $111.3 million increase related to our Asia retail business, inclusive of favorable foreign currency effects of $0.7 million. On a constant currency basis, net revenues increased by $110.6 million, reflecting increases of $79.9 million in comparable store sales and $30.7 million in non-comparable store sales. The increase in our comparable store sales reflected mid-teens AUR growth, as well as higher traffic, during the three months ended December 27, 2025 as compared to the prior fiscal year period. The following table summarizes the percentage changes in comparable store sales related to our Asia retail business:

Current wording

•a $116.8 million increase related to our Asia retail business, inclusive of unfavorable foreign currency effects of $5.0 million. On a constant currency basis, net revenues increased by $121.8 million, reflecting increases of $88.3 million in comparable store sales and $33.5 million in non-comparable store sales. The increase in our comparable store sales reflected mid-teens AUR growth and higher traffic during the three months ended June 27, 2026 as compared to the three months ended June 28, 2025. The following table summarizes the percentage changes in comparable store sales related to our Asia retail business:

Previous wording

Gross Profit. Gross profit increased by $215.6 million, or 14.7%, to $1.682 billion for the three months ended December 27, 2025, including favorable foreign currency effects of $34.6 million. Gross profit as a percentage of net revenues increased to 69.9% for the three months ended December 27, 2025 from 68.4% for the three months ended December 28, 2024. The 150 basis point increase reflected favorable foreign currency effects of 10 basis points. The remaining 140 basis point improvement was primarily due to high-teens AUR growth, favorable product mix, and lower cotton costs, more than offsetting pressure from tariffs and non-cotton product costs.

Current wording

Gross Profit. Gross profit increased by $201.9 million, or 16.2%, to $1.444 billion for the three months ended June 27, 2026, including favorable foreign currency effects of $8.9 million. Gross profit as a percentage of net revenues increased to 73.7% for the three months ended June 27, 2026 from 72.3% for the three months ended June 28, 2025. The 140 basis point increase reflected favorable foreign currency effects of approximately 10 basis points. The remaining 130 basis point improvement was primarily due to mid-teens AUR growth as well as favorable channel and geographic mix shifts, more than offsetting pressure from tariffs and other product costs.