RALPH LAUREN CORPRL
RALPH LAUREN CORP Leases Disclosure
Leases
The following table summarizes ROU assets and lease liabilities recorded on the consolidated balance sheets:
| March 28, 2026 | March 29, 2025 | Location Recorded on Balance Sheet | ||||||||||||||||||
| (millions) | ||||||||||||||||||||
| Assets: | ||||||||||||||||||||
| Operating leases | $ | 1,299.6 | $ | 1,013.1 | Operating lease right-of-use assets | |||||||||||||||
| 176.8 | 198.3 | Property and equipment, net | ||||||||||||||||||
| Total lease assets | $ | 1,476.4 | $ | 1,211.4 | ||||||||||||||||
| Liabilities: | ||||||||||||||||||||
Operating leases: | ||||||||||||||||||||
| Current portion | $ | 211.7 | $ | 225.4 | Current operating lease liabilities | |||||||||||||||
| Non-current portion | 1,325.8 | 1,044.7 | Long-term operating lease liabilities | |||||||||||||||||
| Total operating lease liabilities | 1,537.5 | 1,270.1 | ||||||||||||||||||
Finance leases: | ||||||||||||||||||||
| 20.7 | 20.6 | Accrued expenses and other current liabilities | ||||||||||||||||||
| Non-current portion | 212.3 | 234.8 | Long-term finance lease liabilities | |||||||||||||||||
| Total finance lease liabilities | 233.0 | 255.4 | ||||||||||||||||||
| Total lease liabilities | $ | 1,770.5 | $ | 1,525.5 | ||||||||||||||||
The following table summarizes the composition of total lease cost during the fiscal years presented:
| Fiscal Years Ended | ||||||||||||||||||||||||||
| March 28, 2026 | March 29, 2025 | March 30, 2024 | Location Recorded in Earnings | |||||||||||||||||||||||
| (millions) | ||||||||||||||||||||||||||
| Operating lease cost | $ | 305.5 | $ | 292.5 | $ | 295.0 | (a) | |||||||||||||||||||
Finance lease costs: | ||||||||||||||||||||||||||
| Depreciation of leased assets | 23.9 | 23.1 | 24.0 | (b) | ||||||||||||||||||||||
| Accretion of lease liabilities | 7.0 | 7.7 | 9.1 | Interest expense | ||||||||||||||||||||||
| Variable lease cost | 438.7 | 371.4 | 340.7 | (c) | ||||||||||||||||||||||
| Short-term lease cost | 1.3 | 1.8 | 2.6 | SG&A expenses | ||||||||||||||||||||||
| Sublease income | (9.9) | (7.4) | (6.5) | Restructuring and other charges, net | ||||||||||||||||||||||
| Total lease cost | $ | 766.5 | $ | 689.1 | $ | 664.9 | ||||||||||||||||||||
(a)During Fiscal 2026, $4.3 million was included within cost of goods sold, $292.3 million was included within SG&A expenses, and $8.9 million was included within restructuring and other charges, net. During Fiscal 2025, $3.4 million was included within cost of goods sold, $279.2 million was included within SG&A expenses, and $9.9 million was included within restructuring and other charges, net. During Fiscal 2024, $3.1 million was included within cost of goods sold, $278.1 million was included within SG&A expenses, and $13.8 million was included within restructuring and other charges, net.
(b)During Fiscal 2026, $20.7 million was included within SG&A expenses and $3.2 million was included within restructuring and other charges, net. During Fiscal 2025, $20.2 million was included within SG&A expenses and $2.9 million was included within restructuring and other charges, net. During Fiscal 2024, $20.9 million was included within SG&A expenses and $3.1 million was included within restructuring and other charges, net.
(c)During Fiscal 2026, $4.6 million was included within cost of goods sold, $428.0 million was included within SG&A expenses, and $6.1 million was included within restructuring and other charges, net. During Fiscal 2025, $4.7 million was included within cost of goods sold, $360.6 million was included within SG&A expenses, and $6.1
million was included within restructuring and other charges, net. During Fiscal 2024, $4.7 million was included within cost of goods sold, $332.7 million was included within SG&A expenses, and $3.3 million was included within restructuring and other charges, net.
The following table summarizes certain cash flow information related to the Company's leases:
| Fiscal Years Ended | ||||||||||||||||||||
| March 28, 2026 | March 29, 2025 | March 30, 2024 | ||||||||||||||||||
| (millions) | ||||||||||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||||||||
| Operating cash flows from operating leases | $ | 344.5 | $ | 355.1 | $ | 368.3 | ||||||||||||||
| Operating cash flows from finance leases | 7.1 | 7.7 | 9.1 | |||||||||||||||||
| Financing cash flows from finance leases | 23.2 | 22.0 | 21.3 | |||||||||||||||||
See Note 20 for supplemental non-cash information related to ROU assets recorded in connection with the recognition of new lease liabilities.
The following table presents a maturity analysis summary of contractual cash payments for the Company's lease liabilities recorded on the consolidated balance sheet as of March 28, 2026:
| March 28, 2026 | ||||||||||||||
| Operating Leases | Finance Leases | |||||||||||||
| (millions) | ||||||||||||||
| Fiscal 2027 | $ | 266.2 | $ | 27.5 | ||||||||||
| Fiscal 2028 | 276.2 | 29.1 | ||||||||||||
| Fiscal 2029 | 247.5 | 22.4 | ||||||||||||
| Fiscal 2030 | 198.8 | 22.5 | ||||||||||||
| Fiscal 2031 | 160.3 | 22.8 | ||||||||||||
| Fiscal 2032 and thereafter | 678.7 | 144.7 | ||||||||||||
| Total lease payments | 1,827.7 | 269.0 | ||||||||||||
| Less: interest | (290.2) | (36.0) | ||||||||||||
| Total lease liabilities | $ | 1,537.5 | $ | 233.0 | ||||||||||
Additionally, the Company has $147.5 million of future payment obligations relating to executed lease agreements for which the related lease terms had not yet commenced as of the end of Fiscal 2026 and, therefore, are not recorded on the consolidated balance sheet as of March 28, 2026.
The following table summarizes the weighted-average remaining lease terms and weighted-average discount rates related to the Company's operating and finance leases recorded on the consolidated balance sheets:
| March 28, 2026 | March 29, 2025 | |||||||||||||||||||||||||
| Operating Leases | Finance Leases | Operating Leases | Finance Leases | |||||||||||||||||||||||
| Weighted-average remaining lease term (years) | 7.8 | 10.4 | 7.7 | 11.1 | ||||||||||||||||||||||
| Weighted-average discount rate | 3.9 | % | 2.8 | % | 3.6 | % | 2.8 | % | ||||||||||||||||||
See Note 3 for discussion of the Company's accounting policies related to leases.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | May 21, 2026 | Showing above |
| 2025 | May 22, 2025 | |
| 2024 | May 23, 2024 | |
| 2023 | May 25, 2023 | |
| 2022 | May 24, 2022 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.