RALPH LAUREN CORP
For the period ended Sep 26, 2026. Filed Nov 5, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 26, 2026 · Filed Nov 5, 2026
RL$376.56-1.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-27; filed 2026-08-06.
0001628280-26-053992
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-26; filed 2026-11-05.
0001628280-26-070697
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 188 previous paragraphs and 232 current paragraphs.
112 unchanged; 67 reworded; 42 added; 9 removed; 0 previous and 11 current paragraphs rearranged.
Tables are not compared: 13 previous and 21 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (42)
Current report
•the potential impact on our business arising from the development, adoption, implementation, use, governance, and regulation of artificial intelligence, including operational, cybersecurity, data privacy, intellectual property, and third-party risks, as well as our ability to realize anticipated benefits from these technologies;
Current report
Ongoing military conflicts, geopolitical instability, and civil unrest in certain markets, including hostilities in the Middle East, continue to create uncertainty and may continue to disrupt global energy markets, key shipping routes, retail traffic, store operations, transportation networks, and the movement of inventory. Although our operations in the Middle East are not material and these conditions have not significantly impacted our business to date, we have experienced some delays in inventory receipts. Further escalation or prolonged disruptions could adversely affect consumer sentiment and spending, result in additional delays and/or temporary store disruptions, and increase transportation costs, security, logistics and other operating costs.
Current report
The U.S. has implemented significant changes to its trade policies, including tariffs imposed under various statutory authorities. In February 2026, the U.S. Supreme Court invalidated tariffs previously imposed under IEEPA. In March 2026, the U.S. Court of International Trade directed U.S. Customs and Border Protection to refund previously collected IEEPA tariffs. As a result, during the three months ended September 26, 2026, we recognized an $82.3 million benefit in cost of goods sold in our consolidated statement of operations related to the realization of refunds of previously paid IEEPA tariffs. We are strategically reinvesting the refunds to support business growth and to initiatives that strengthen and advance our values and purpose, a portion of which was used for charitable donations of $33.2 million during the second quarter.
Current report
We continue to monitor broader trade and economic developments. Following the U.S. Supreme Court's February 2026 decision, the U.S. imposed new tariffs under other trade authorities, and future trade policy actions remain uncertain. These developments could contribute to higher product costs and inflation, slower economic growth, supply chain disruptions, and volatility in global financial markets and foreign currency exchange rates.
Current report
Our gross profit as a percentage of net revenues during the three months ended September 26, 2026 increased 620 basis points to 74.2% as compared to the prior fiscal year period, approximately half of which was due to IEEPA tariff refunds received during the second quarter, with the remainder primarily attributable to AUR growth, favorable geographic mix, and lower product costs. Our gross profit as a percentage of net revenues during the six months ended September 26, 2026 increased 410 basis points to 74.0% as compared to the prior fiscal year period, approximately half of which was due to IEEPA tariff refunds received during the second quarter, with the remainder primarily attributable to AUR growth, favorable channel and geographic mix shifts, and lower product costs.
Current report
Our operating results during each of the three months ended September 26, 2026 and September 27, 2025 included net restructuring-related charges and certain other charges (benefits), which had a favorable impact of $19.1 million and an unfavorable impact of $37.3 million, respectively, with an after-tax effect of increasing net income by $13.9 million, or $0.23 per diluted share, and reducing net income by $29.3 million, or $0.47 per diluted share, respectively. During the six-month periods ended September 26, 2026 and September 27, 2025, our operating results were negatively impacted by net restructuring-related charges and certain other charges (benefits) totaling $4.4 million and $56.6 million, respectively, which had an after-tax effect of reducing net income by $4.9 million, or $0.08 per diluted share, and $44.7 million, or $0.71 per diluted share, respectively.
Current report
(a)Non-routine gross profit adjustments relate to the receipt of IEEPA tariff refunds and are recorded within cost of goods sold in the consolidated statements of operations.
Current report
NM Not meaningful.
Current report
North America net revenues — Net revenues increased by $53.2 million, or 6.4%, during the three months ended September 26, 2026 as compared to the three months ended September 27, 2025. On a constant currency basis, net revenues increased by $53.8 million, or 6.5%.
Current report
The $53.2 million increase in North America net revenues was driven by:
Current report
•a $24.7 million increase related to our North America wholesale business primarily driven by improved sell-out trends and a favorable timing shift of sales orders from the third quarter of Fiscal 2027.
Current report
Europe net revenues — Net revenues increased by $7.7 million, or 1.1%, during the three months ended September 26, 2026 as compared to the three months ended September 27, 2025. On a constant currency basis, net revenues increased by $17.3 million, or 2.5%.
Current report
•a $10.0 million increase related to our Europe wholesale business, inclusive of unfavorable foreign currency effects of $4.9 million.
Current report
This increase was partially offset by:
Current report
Asia net revenues — Net revenues increased by $125.7 million, or 28.2%, during the three months ended September 26, 2026 as compared to the three months ended September 27, 2025. On a constant currency basis, net revenues increased by $125.0 million, or 28.1%.
Current report
Gross Profit. Gross profit increased by $261.5 million, or 19.1%, to $1.628 billion for the three months ended September 26, 2026. Gross profit as a percentage of net revenues increased to 74.2% for the three months ended September 26, 2026 from 68.0% for the three months ended September 27, 2025. Approximately half of the 620 basis point increase, inclusive of favorable foreign currency effects of approximately 30 basis points, was due to the benefit from IEEPA tariff refunds received during the second quarter, with the remaining increase primarily attributable to AUR growth, favorable geographic mix, and lower product costs.
Current report
Operating Income. Operating income increased by $118.0 million, or 48.0%, to $363.7 million for the three months ended September 26, 2026, reflecting favorable foreign currency effects of $2.3 million. Additionally, our operating results included net restructuring-related charges and certain other charges (benefits), which had a favorable impact of $19.1 million during the three months ended September 26, 2026 and an unfavorable impact of $37.3 million during the three months ended September 27, 2025. Operating income as a percentage of net revenues was 16.6% for the three months ended September 26, 2026, reflecting a 440 basis point increase from the prior fiscal year period. The increase in operating income as a percentage of net revenues was primarily driven by the increase in our gross margin, partly offset by the increase in SG&A expenses as a percentage of net revenues.
Current report
North America operating margin improved by 160 basis points, primarily due to an increase of 270 basis points in gross margin, partly offset by an increase of 110 basis points in SG&A expenses as a percentage of net revenues, which included higher marketing expenses.
Current report
Europe operating margin was unchanged, with an increase of 280 basis points in gross margin offset by an increase in SG&A expenses as a percentage of net revenues, which included higher marketing expenses. The operating margin was inclusive of favorable foreign currency effects of 80 basis points.
Current report
The income tax provision and effective tax rate for the three months ended September 26, 2026 were $72.6 million and 19.7%, respectively, as compared to $35.3 million and 14.6%, respectively, for the three months ended September 27, 2025. The $37.3 million increase in our income tax provision was primarily driven by a 510 basis point increase in our effective tax rate, as well as an increase in our pretax income. The increase in our effective tax rate was primarily due to the net unfavorable impact of uncertain tax positions year over year and the tax impacts of compensation-related adjustments, partly offset by the favorable tax impact of permanent adjustments and tax credits. See Note 8 to the accompanying consolidated financial statements.
Current report
Net Income. Net income increased to $296.6 million for the three months ended September 26, 2026, from $207.5 million for the three months ended September 27, 2025. The $89.1 million increase in net income was due to the increase in our operating income, partly offset by the increase in our income tax provision, as previously discussed. Additionally, our operating results during the three months ended September 26, 2026 were favorably impacted by $19.1 million of net restructuring-related charges and certain other benefits, which had an after-tax effect of increasing net income by $13.9 million. During the three months ended September 27, 2025, our operating results were negatively impacted by $37.3 million of net restructuring-related charges and certain other charges, which had an after-tax effect of reducing net income by $29.3 million.
Current report
RESULTS OF OPERATIONS
Current report
Six Months Ended September 26, 2026 Compared to Six Months Ended September 27, 2025
Current report
NM Not meaningful.
Current report
Net Revenues. Net revenues increased by $423.3 million, or 11.3%, to $4.153 billion during the six months ended September 26, 2026 as compared to the six months ended September 27, 2025, reflecting growth across our reportable segments, including favorable foreign currency effects of $0.5 million. On a constant currency basis, net revenues increased by $422.8 million, or 11.3%.
Current report
Our global average store count decreased by 8 stores and concession shops during the six months ended September 26, 2026 compared with the six months ended September 27, 2025, primarily driven by concession shop closures in Asia.
Current report
North America net revenues — Net revenues increased by $137.3 million, or 9.2%, during the six months ended September 26, 2026 as compared to the six months ended September 27, 2025. On a constant currency basis, net revenues increased by $137.8 million, or 9.3%.
Current report
The $137.3 million increase in North America net revenues was driven by:
Current report
•a $70.7 million increase related to our North America retail business. On a constant currency basis, net revenues increased by $71.2 million, reflecting an increase in comparable store sales. This increase was primarily driven by low-double digit AUR growth and higher traffic during the six months ended September 26, 2026. The following table summarizes the percentage changes in comparable store sales related to our North America retail business:
Current report
Europe net revenues — Net revenues increased by $47.6 million, or 3.8%, during the six months ended September 26, 2026 as compared to the six months ended September 27, 2025. On a constant currency basis, net revenues increased by $42.5 million, or 3.4%.
Current report
•a $6.8 million increase related to our Europe retail business, inclusive of favorable foreign currency effects of $1.7 million. On a constant currency basis, net revenues increased by $5.1 million, reflecting an increase of $4.4 million in non-comparable store sales, with comparable store sales approximately in line with prior year, which reflected modest AUR growth and lower traffic in brick and mortar stores during the six months ended September 26, 2026. The following table summarizes the percentage changes in comparable store sales related to our Europe retail business:
Current report
Asia net revenues — Net revenues increased by $241.0 million, or 26.2%, during the six months ended September 26, 2026 as compared to the six months ended September 27, 2025. On a constant currency basis, net revenues increased by $245.1 million, or 26.7%.
Current report
•a $239.6 million increase related to our Asia retail business, inclusive of unfavorable foreign currency effects of $4.6 million. On a constant currency basis, net revenues increased by $244.2 million, reflecting increases of $173.8 million in comparable store sales and $70.4 million in non-comparable store sales. The increase in our comparable store sales reflected low-double digit AUR growth and higher traffic during the six months ended September 26, 2026. The following table summarizes the percentage changes in comparable store sales related to our Asia retail business:
Current report
Selling, General, and Administrative Expenses. SG&A expenses increased by $245.2 million, or 12.1%, to $2.278 billion for the six months ended September 26, 2026, including unfavorable foreign currency effects of $1.7 million. SG&A expenses as a percentage of net revenues increased to 54.8% for the six months ended September 26, 2026 from 54.5% for the six months ended September 27, 2025. The 30 basis point increase was largely due to higher marketing investments, partly offset by operating leverage on higher net revenues.
Current report
Restructuring and Other Charges, Net. During the six-month periods ended September 26, 2026 and September 27, 2025, we recorded net restructuring charges of $7.0 million and $15.9 million, respectively, associated with severance and benefits costs, as well as other charges of $44.7 million and $36.7 million, respectively, incurred in connection with our Next Generation Transformation project (refer to "Recent Developments" for additional discussion). In addition, during the six-month period ended September 26, 2026, we recorded other charges of $33.2 million related to charitable donations, funded by a portion of the IEEPA tariff refunds received during the second quarter. See Note 7 to the accompanying consolidated financial statements.
Current report
North America operating margin improved by 200 basis points, primarily due to an increase of 210 basis points in gross margin, partly offset by an increase of 10 basis points in SG&A expense as a percentage of net revenues, which included higher marketing expenses.
Current report
Corporate expenses decreased by $49.8 million to $345.4 million during the six months ended September 26, 2026 as compared to the prior fiscal year. The decrease in corporate expenses was primarily due to non-routine gross profit adjustments of $82.3 million related to IEEPA tariff refunds (a portion of which was used for charitable donations, as previously discussed), partly offset by higher compensation-related expenses of $17.0 million and consulting and professional fees of $12.7 million.
Current report
Non-operating Income (Expense), Net. During the six months ended September 26, 2026, we reported non-operating income, net of $5.3 million as compared to $1.5 million during the six months ended September 27, 2025.
Current report
•a favorable change in income tax receivables and payables driven by lower tax payments due to the absence of certain non-routine tax transactions that occurred in the prior year, as well as the timing of tax payments, partly offset by the higher level of pretax income.
Current report
•a $190.7 million increase in cash used to repurchase shares of our Class A common stock. During the six months ended September 26, 2026, we used $500.0 million to repurchase shares of our Class A common stock pursuant to our common stock repurchase program, and an additional $126.6 million in shares of our Class A common stock were surrendered or withheld in satisfaction of withholding taxes in connection with the vesting of awards under our long-term stock incentive plans. On a comparative basis, during the six months ended September 27, 2025, we used $313.1 million to repurchase shares of our Class A common stock pursuant to our common stock repurchase program, and an additional $122.8 million in shares of our Class A common stock were surrendered or withheld for taxes.
Showing the first 40 of 42 passages. Open the source sections for the rest.
Removed paragraphs (9)
Previous report
•the potential impact on our business arising from developments and operational risks related to the implementation of artificial intelligence technologies and associated evolving regulatory requirements;
Previous report
The global economy and retail industry are impacted by many factors beyond our control. In April 2025, the U.S. announced significant changes to its trade policies under the authority of IEEPA, including broad-based tariff increases on foreign imported goods, with potential for new tariffs and further future increases to existing tariffs, as well as revisions or terminations to existing trade agreements. In response, many countries announced retaliatory tariffs on U.S. exports and other trade restrictions. In February 2026, the U.S. Supreme Court invalidated the IEEPA tariffs previously applied to our foreign imports, after which the U.S. announced additional tariffs under other trade authorities. In March 2026, the U.S. Court of International Trade issued an order directing U.S. Customs and Border Protection ("CBP") to refund IEEPA tariffs that were previously collected, and in April 2026, CBP announced the refund process, leveraging the Consolidated Administration and Processing of Entries Claim Portal through a phased rollout. While we have submitted refund claims for eligible IEEPA tariffs previously paid, the ultimate amount and timing of collection, and approval of any such refunds remain uncertain. Moreover, trade policy developments are ongoing and continue to create uncertainty regarding the future relationship between the U.S. and other countries, and could contribute to further trade restrictions, higher inflation, slower economic growth, supply chain disruptions, and continued volatility in global stock markets and foreign currency exchange rates.
Previous report
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 report
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 report
During the three-month periods ended June 27, 2026 and June 28, 2025, our operating results were negatively impacted by net restructuring-related charges and certain other charges (benefits) totaling $23.5 million and $19.3 million, respectively, which had an after-tax effect of reducing net income by $18.8 million, or $0.31 per diluted share, and $15.4 million, or $0.25 per diluted share, respectively.
Previous report
North America net revenues — Net revenues increased by $84.1 million, or 12.8%, during the three months ended June 27, 2026 as compared to the three months ended June 28, 2025. On a constant currency basis, net revenues increased by $84.0 million, or 12.8%.
Previous report
The $84.1 million increase in North America net revenues was driven by:
Previous report
Europe net revenues — Net revenues increased by $39.9 million, or 7.2%, during the three months ended June 27, 2026 as compared to the three months ended June 28, 2025. On a constant currency basis, net revenues increased by $25.2 million, or 4.6%.
Previous report
Asia net revenues — Net revenues increased by $115.3 million, or 24.3%, during the three months ended June 27, 2026 as compared to the three months ended June 28, 2025. On a constant currency basis, net revenues increased by $120.1 million, or 25.3%.
Reworded paragraphs (67)
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 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;
Current wording
•the impact of economic, political, and other conditions on us, our customers, suppliers, vendors, and lenders, including business disruptions arising from ongoing military conflicts and other hostilities in the Middle East and other regions, civil or political unrest, diplomatic tensions between the U.S. and other countries and any resulting anti-American sentiment, volatility in energy and commodity prices, disruptions to international shipping routes, elevated interest rates, among other factors described herein;
Previous wording
•the potential impact to our business resulting from inflationary pressures, including increases in the costs of raw materials, transportation, wages, healthcare, and other benefit-related costs;
Current wording
•the potential impact to our business resulting from inflationary pressures, including increases in the costs of raw materials, energy, transportation, wages, healthcare, and other benefit-related costs;
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 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;
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 uncertainty regarding the scope, duration, and legal status of tariffs imposed by the U.S. under other trade authorities following the U.S. Supreme Court ruling against tariffs previously imposed under the International Emergency Economic Powers Act ("IEEPA"), any retaliatory measures implemented by impacted countries, and any related impact to global financial markets, foreign currency exchange rates, and inflationary pressures, as well as our ability to implement mitigating sourcing strategies;
Previous 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;
Current wording
•the potential 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 and other operating costs resulting from port strikes, disruptions to major waterways, and/or increases in oil and other energy prices;
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, disruptions to major shipping routes or waterways, 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 or the Countering America's Adversaries Through Sanctions Act, 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 or increases in oil and other energy prices, any of which could impair our ability to satisfy consumer demand and recover higher costs through pricing;
Previous wording
•our efforts to successfully enhance, upgrade, and/or transition our global information technology systems and digital commerce platforms;
Current wording
•our ability to successfully enhance, upgrade, and/or transition our global information technology systems and digital commerce platforms, and realize the anticipated operational and financial benefits from these initiatives;
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 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.
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 second quarter of Fiscal 2027 ended on September 26, 2026 and was a 13-week period. The second quarter of Fiscal 2026 ended on September 27, 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 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.
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 and six-month periods ended September 26, 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 period ended June 27, 2026 compared to the three-month period ended June 28, 2025.
Current wording
•Results of operations. This section provides an analysis of our results of operations for the three-month and six-month periods ended September 26, 2026 compared to the three-month and six-month periods ended September 27, 2025.
Previous 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.
Current wording
•Financial condition and liquidity. This section provides a discussion of our financial condition and liquidity as of September 26, 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 six months ended September 26, 2026 compared to the six months ended September 27, 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 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.
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 and six-month periods ended September 26, 2026 are not necessarily indicative of the operating results and cash flows that may be expected for the full Fiscal 2027.
Previous 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.
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 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
We continue to advance key workstreams under the NGT project including completion of global design templates that support our core enterprise resource planning platform and related processes, automation of certain distribution center operations, and the global roll-out of merchandise allocation and long-range demand planning tools.
Current wording
We continue to advance key workstreams under the NGT project including completion of global templates that support our core enterprise resource planning platform and related processes, automation of certain distribution center operations, and the global roll-out of merchandise allocation and demand planning tools.
Previous 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.
Current wording
In connection with the NGT project, we incurred other charges of $23.9 million and $44.7 million during the three-month and six-month periods ended September 26, 2026, respectively, and $25.7 million and $36.7 million during the three-month and six-month periods ended September 27, 2025, respectively.
Previous 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.
Current wording
The global economy and retail industry continue to be affected by geopolitical conflicts, civil unrest and protests in various markets, inflationary pressures, elevated interest rates, increased fuel prices, evolving trade policies, and foreign currency volatility, among other factors. These factors continue to affect consumer discretionary income, spending, and sentiment globally and have contributed to a competitive and uncertain retail operating environment. In such environment, many retailers, particularly in the U.S. and Europe, continue to rely on promotional activity to drive traffic, improve conversion, and manage inventory levels. The department store sector also continues to experience consolidations, restructurings, bankruptcies, ownership changes, and store closures.
Previous 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.
Current wording
In response to these challenges, we have implemented various global strategies designed to support long-term profitable growth by strengthening our consumer-facing areas and driving a more efficient operating model. We have diversified our supply chain geographically and are mitigating cost pressures through disciplined inventory management, supplier negotiations, country-of-origin flexibility, pricing actions, and other operational initiatives. However, the tariff environment remains dynamic and unpredictable, and significant increases in tariffs or other trade restrictions could negatively affect our profitability. We continue to monitor the geopolitical and macroeconomic environment and adjust our operating strategies as appropriate, while remaining focused on executing our broader long-term strategy of brand elevation, including initiatives intended to support average unit retail ("AUR") growth and brand equity.
Previous 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.
Current wording
During the three months ended September 26, 2026, we reported net revenues of $2.193 billion, net income of $296.6 million, and net income per diluted share of $4.87, as compared to net revenues of $2.011 billion, net income of $207.5 million, and net income per diluted share of $3.32 during the three months ended September 27, 2025. During the six months ended September 26, 2026, we reported net revenues of $4.153 billion, net income of $558.8 million, and net income per diluted share of $9.15, as compared to net revenues of $3.730 billion, net income of $427.9 million, and net income per diluted share of $6.85 during the six months ended September 27, 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 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.
Current wording
Our operating performance for the three-month and six-month periods ended September 26, 2026 as compared to the prior fiscal year periods reflected revenue growth of 9.1% and 11.3%, respectively, on a reported basis, and 9.6% and 11.3%, 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.
Previous 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.
Current wording
Selling, general, and administrative ("SG&A") expenses as a percentage of net revenues during the three months ended September 26, 2026 increased by 90 basis points to 54.8%, and 30 basis points to 54.8% during the six months ended September 26, 2026 as compared to the prior fiscal year periods, primarily due to higher marketing investments, rent and occupancy costs, and other selling expenses, partly offset by operating leverage on higher net revenues.
Previous 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.
Current wording
Net income increased by $89.1 million to $296.6 million during the three months ended September 26, 2026 as compared to the three months ended September 27, 2025, primarily due to a $118.0 million increase in our operating income, partly offset by a $37.3 million increase in our income tax provision. Net income per diluted share increased by $1.55 to $4.87 per share during the three months ended September 26, 2026 as compared to the three months ended September 27, 2025, primarily driven by the higher level of net income and lower weighted-average diluted shares outstanding. Net income increased by $130.9 million to $558.8 million during the six months ended September 26, 2026 as compared to the six months ended September 27, 2025, primarily due to a $186.8 million increase in our operating income, partly offset by a $59.7 million increase in our income tax provision. Net income per diluted share increased by $2.30 to $9.15 per share during the six months ended September 26, 2026 as compared to the six months ended September 27, 2025, driven by the higher level of net income and lower weighted-average diluted shares outstanding.
Previous 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.
Current wording
As of September 26, 2026, our net cash and short-term investments position (calculated as cash and cash equivalents, plus short-term investments, less total debt) was $581.8 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 $626.6 million, including $126.6 million of share withholdings in satisfaction of tax obligations related to the vesting of stock-based compensation awards, to make dividend payments of $114.4 million, and to invest in our business through $114.2 million of capital expenditures, partly offset by our operating cash flows of $618.2 million.
Previous 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.
Current wording
Net cash provided by operating activities was $618.2 million during the six months ended September 26, 2026, as compared to $229.3 million during the six months ended September 27, 2025. The net increase in cash provided by operating activities was primarily due to favorable changes in inventory levels and income tax receivables and payables, as well as an increase in net income before non-cash charges, as compared to the prior fiscal year period.
Previous 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.
Current wording
Our equity decreased to $2.730 billion as of September 26, 2026 compared to $2.841 billion as of March 28, 2026 due to our share repurchase activity and dividends declared during the six months ended September 26, 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 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):
Current wording
The comparability of our operating results for the three-month and six-month periods ended September 26, 2026 and September 27, 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
(a)Non-routine bad debt expense reversals are recorded within SG&A expenses in the consolidated statements of operations.
Current wording
(b)Non-routine bad debt reversals are recorded within SG&A expenses in the consolidated statements of operations.
Previous 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%.
Current wording
Net Revenues. Net revenues increased by $182.6 million, or 9.1%, to $2.193 billion during the three months ended September 26, 2026 as compared to the three months ended September 27, 2025, reflecting growth across our reportable segments, including unfavorable foreign currency effects of $9.5 million. On a constant currency basis, net revenues increased by $192.1 million, or 9.6%.
Previous 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:
Current wording
The following table summarizes the percentage changes in our consolidated comparable store sales for the three months ended September 26, 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 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.
Current wording
Our global average store count decreased by 13 stores and concession shops during the three months ended September 26, 2026 compared with the three months ended September 27, 2025, primarily driven by concession shop closures 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. and Canada. 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., Canada, Korea, and Japan. We also sell products online through various third-party digital partner commerce sites, primarily in Asia.
Previous 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:
Current wording
•a $28.5 million increase related to our North America retail business. On a constant currency basis, net revenues increased by $29.1 million, reflecting an increase in comparable store sales. This increase was primarily driven by high-single digit AUR growth during the three months ended September 26, 2026. The following table summarizes the percentage changes in comparable store sales related to our North America retail business:
Previous wording
The $39.9 million increase in Europe net revenues was driven by:
Current wording
The $7.7 million increase in Europe net revenues was driven by:
Previous 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:
Current wording
•a $2.3 million decline related to our Europe retail business, inclusive of unfavorable foreign currency effects of $4.7 million. On a constant currency basis, net revenues increased by $2.4 million, reflecting an increase of $5.4 million in non-comparable store sales, partly offset by a decrease of $3.0 million in comparable store sales. The decrease in our comparable store sales reflected lower traffic in brick and mortar stores during the three months ended September 26, 2026. The following table summarizes the percentage changes in comparable store sales related to our Europe retail business:
Previous wording
The $115.3 million increase in Asia net revenues was primarily driven by:
Current wording
The $125.7 million increase in Asia net revenues was primarily driven by:
Previous 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:
Current wording
•a $122.8 million increase related to our Asia retail business, inclusive of favorable foreign currency effects of $0.4 million. On a constant currency basis, net revenues increased by $122.4 million, reflecting increases of $85.5 million in comparable store sales and $36.9 million in non-comparable store sales. The increase in our comparable store sales reflected higher traffic and low-double digit AUR growth during the three months ended September 26, 2026. The following table summarizes the percentage changes in comparable store sales related to our Asia retail business:
Previous wording
Gross profit is the difference between total net revenues and cost of goods sold. Cost of goods sold includes the amounts incurred to acquire and produce inventory for sale to our customers, including product costs, freight-in, and import costs, as well as changes in reserves for shrinkage and inventory realizability. Gains and losses associated with forward foreign currency exchange contracts that are designated and qualifying as cash flow hedges of inventory transactions are also recognized within cost of goods sold when the hedged inventory is sold. The costs of selling merchandise, including those associated with preparing merchandise for sale, such as picking, packing, warehousing, and order charges, are included in SG&A expenses in the consolidated statements of operations. As a result, our gross profit may not be comparable to that of other entities.
Current wording
Gross profit represents the difference between total net revenues and cost of goods sold. Cost of goods sold includes amounts incurred to acquire and produce inventory for sale to our customers, including product costs, freight-in, and import costs, as well as changes in reserves for shrinkage and inventory realizability. Gains and losses associated with forward foreign currency exchange contracts that are designated and qualifying as cash flow hedges of inventory transactions are also recognized within cost of goods sold when the hedged inventory is sold. The costs of selling merchandise, including those associated with preparing merchandise for sale, such as picking, packing, warehousing, and order charges, are included in SG&A expenses in the consolidated statements of operations. As a result, our gross profit may not be comparable to that of other entities.
Previous wording
Selling, General, and Administrative Expenses. SG&A expenses include costs relating to compensation and benefits, marketing and advertising, rent and occupancy, distribution, information technology, legal, depreciation and amortization, bad debt, and other selling and administrative costs. SG&A expenses increased by $127.6 million, or 13.4%, to $1.077 billion for the three months ended June 27, 2026, including unfavorable foreign currency effects of $4.4 million. SG&A expenses as a percentage of net revenues declined to 55.0% for the three months ended June 27, 2026 from 55.2% for the three months ended June 28, 2025. The 20 basis point decline was largely attributable to operating leverage on higher net revenues.
Current wording
Selling, General, and Administrative Expenses. SG&A expenses include costs relating to compensation and benefits, marketing and advertising, rent and occupancy, distribution, information technology, legal, depreciation and amortization, bad debt, and other selling and administrative costs. SG&A expenses increased by $117.6 million, or 10.9%, to $1.201 billion for the three months ended September 26, 2026, including favorable foreign currency effects of $2.7 million. SG&A expenses as a percentage of net revenues increased to 54.8% for the three months ended September 26, 2026 from 53.9% for the three months ended September 27, 2025. The 90 basis point increase was largely attributable to higher marketing investments, rent and occupancy costs, and other selling expenses, partly offset by operating leverage on higher net revenues.
Previous wording
The $127.6 million increase in SG&A expenses was driven by:
Current wording
The $117.6 million increase in SG&A expenses was driven by:
Previous wording
Restructuring and Other Charges, Net. Restructuring and other charges, net during the three-month periods ended June 27, 2026 and June 28, 2025 consisted primarily of net restructuring charges of $3.0 million and $6.4 million, respectively, associated with severance and benefits costs, as well as other charges of $20.8 million and $11.0 million, respectively, incurred in connection with our Next Generation Transformation project (refer to "Recent Developments" for additional discussion). See Note 7 to the accompanying consolidated financial statements.
Current wording
Restructuring and Other Charges, Net. During the three-month periods ended September 26, 2026 and September 27, 2025, we recorded net restructuring charges of $4.0 million and $9.5 million, respectively, associated with severance and benefits costs, as well as other charges of $23.9 million and $25.7 million, respectively, incurred in connection with our Next Generation Transformation project (refer to "Recent Developments" for additional discussion). In addition, during the three months ended September 26, 2026, we recorded other charges of $33.2 million related to charitable donations, funded by a portion of the IEEPA tariff refunds received during the second quarter. See Note 7 to the accompanying consolidated financial statements.
Previous wording
Asia operating margin improved by 280 basis points, primarily due to a reduction of 240 basis points in SG&A expenses as a percentage of net revenues and an increase of 50 basis points in gross margin. The overall improvement in operating margin was inclusive of the favorable impact of 10 basis points related to foreign currency effects.
Current wording
Asia operating margin improved by 240 basis points, primarily due to a reduction of 200 basis points in SG&A expenses as a percentage of net revenues and an increase of 50 basis points in gross margin. The overall improvement in operating margin was inclusive of unfavorable foreign currency effects of 10 basis points.
Previous wording
Corporate expenses increased by $25.2 million to $190.0 million during the three months ended June 27, 2026 as compared to the prior fiscal year. The increase in corporate expenses was primarily due to higher compensation-related expenses of $25.9 million and staff-related expenses of $2.9 million, partly offset by higher intercompany sourcing commission of $3.6 million (which is offset at the segment level and eliminates in consolidation).
Current wording
Corporate expenses decreased by $75.0 million to $155.4 million during the three months ended September 26, 2026 as compared to the prior fiscal year. The decrease in corporate expenses was primarily due to non-routine gross profit adjustments of $82.3 million related to IEEPA tariff refunds (a portion of which was used for charitable donations, as previously discussed) and lower compensation-related expenses of $8.9 million, partly offset by higher consulting and professional fees of $10.9 million.
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Current report — wording carried from elsewhere
The following table summarizes our results of operations and expresses the percentage relationship to net revenues of certain financial statement captions. All percentages shown in the table below and the discussion that follows have been calculated using unrounded numbers.
Current report — wording carried from elsewhere
(a)Effective tax rate is calculated by dividing the income tax provision by income before income taxes.
Current report — wording carried from elsewhere
The following table summarizes the percentage change in our consolidated comparable store sales for the six months ended September 26, 2026 as compared to the prior fiscal year period:
Current report — wording carried from elsewhere
Net revenues for our segments, as well as a discussion of the changes in each reportable segment's net revenues from the comparable prior fiscal year period, are provided below:
Current report — wording carried from elsewhere
The $47.6 million increase in Europe net revenues was driven by:
Current report — wording carried from elsewhere
The $241.0 million increase in Asia net revenues was primarily driven by:
Current report — wording carried from elsewhere
The $245.2 million increase in SG&A expenses was driven by:
Current report — wording carried from elsewhere
Operating income and margin for our segments, as well as a discussion of the changes in each reportable segment's operating margin from the comparable prior fiscal year period, are provided below:
Current report — wording carried from elsewhere
(a)See discussion above for additional information related to restructuring and other charges, net recorded during the fiscal periods presented.
Current report — wording carried from elsewhere
Net Income per Diluted Share. Net income per diluted share increased to $9.15 for the six months ended September 26, 2026, from $6.85 for the six months ended September 27, 2025. The $2.30 per share increase was primarily driven by the higher level of net income, as previously discussed, and lower weighted-average diluted shares outstanding during the six months ended September 26, 2026 driven by our share repurchases during the last twelve months. In addition, net income per diluted share for the six-month periods ended September 26, 2026 and September 27, 2025 was negatively impacted by $0.08 per share and $0.71 per share, respectively, attributable to net restructuring-related charges and certain other charges, as previously discussed.
Current report — wording carried from elsewhere
The net favorable change related to our operating assets and liabilities, including our working capital, was primarily driven by: