Ralph Lauren Corporation

“A decision by the controlling owner of a group of stores or any other significant customer, whether motivated by economic conditions, financial difficulties, competitive conditions, or otherwise, to decrease or eliminate the amount of merchandise purchased from us or our licensing partners or to change their manner of doing business with us or our licensing partners or a change based on their new strategic and operational initiatives, including their continued focus on 31 further development of "private labels" and exclusive product offerings in an effort to differentiate themselves from competitors, could have a material adverse effect on our business.”

Annual report 2026A · The company itself

“Our wholesale sales are made principally to major department stores, specialty stores, and third-party digital partners around the world, as well as to certain third-party-owned stores to which we have licensed the right to operate in defined geographic territories using our trademarks.”

Annual report 2026A · The company itself

“Our Retail Business Our retail business sells directly to customers throughout the world via our 594 retail stores and 644 concession-based shop-within-shops, totaling approximately 4.1 million and 0.7 million square feet, respectively, as well as through our own digital commerce sites and those of various third-party digital partners. We operate our business using a global omni-channel retailing strategy that seeks to deliver an integrated shopping experience with a consistent message of our brands and products to our customers, regardless of whether they are shopping for our products in physical stores or online.”

Annual report 2026A · The company itself

“Our Wholesale Business Our wholesale business sells our products globally primarily to major department stores, specialty stores, and golf and pro shops, as well as to various third-party digital partners.”

Annual report 2026A · The company itself

“See Item 1A — "Risk Factors — Risks Related to our Business and Operations — A substantial portion of our revenue is derived from a limited number of large wholesale customers. Our business could be adversely affected as a result of consolidations, liquidations, restructurings, other ownership changes in the retail industry, and/or any financial instability of our large wholesale customers."”

Annual report 2026A · The company itself

“We face increasing competition from companies selling apparel, handbags, footwear, accessories, home, and other of our product categories, including through the Internet.”

Annual report 2026A · The company itself

“We also face intense competition from other domestic and foreign apparel, footwear, and accessory companies that sell products through brick and mortar stores and wholesale and licensing channels.”

Annual report 2026A · The company itself

“Sales to our three largest wholesale customers accounted for approximately 11% of total net revenues for Fiscal 2026, and these customers accounted for approximately 29% of our total gross trade accounts receivable outstanding as of March 28, 2026.”

Annual report 2026A · The company itself

“The department store sector has experienced numerous consolidations, restructurings, bankruptcies, and other ownership changes in recent times, which could potentially increase in frequency as a result of current adverse economic conditions, including changes to existing trade policies and agreements (including higher tariffs on U.S. imports), ongoing inflationary pressures and high interest rates, and/or changes in consumer shopping preferences, such as the continued shift away from traditional brick and mortar wholesale retailers to larger online retailers. Such disruptions have typically resulted in actual or anticipated bankruptcies (such as Saks Global's recent bankruptcy filing), store closures (such as Macy's previously announced plan to close 150 stores through calendar 2028), centralized purchasing decisions, and increased emphasis on inventory management and productivity, which could result in fewer stores carrying our products or reduced demand of our products by our wholesale customers.”

Annual report 2026A · The company itself

“We sell our wholesale merchandise primarily to major department stores, specialty stores, and third-party digital partners across North America, Europe, Asia, Australia, and New Zealand, and extend credit based on an evaluation of each wholesale customer's financial condition, usually without requiring collateral.”

Annual report 2026A · The company itself

“In addition, the entire apparel industry, including our Company, has faced, and could continue to face, supply chain challenges, including reduced freight availability, port congestion, labor shortages, and rising wages, oil prices and other energy costs, among others, as a result of unfavorable macroeconomic conditions and other factors.”

Annual report 2026A · The company itself

“Our distribution centers generally utilize computer-controlled and automated equipment, which are subject to various risks, including software viruses, security breaches, power interruptions, or other system failures. If any of our distribution centers were to close or become inoperable or inaccessible for any reason, including, but not limited to, natural disasters, severe weather, labor shortages, fires, and system failures, pandemic diseases, or if we fail to successfully consolidate existing facilities or transition to new facilities, we could experience a substantial loss of inventory, disruption of deliveries to our customers and our stores, increased costs, and longer lead times associated with the distribution of products during the period that would be required to reopen or replace the facility.”

Annual report 2026A · The company itself

“Our ability to successfully develop and deploy AI depends on attracting, developing, and retaining talent with AI-related skills and expertise. Competition for such talent is intense.”

Annual report 2026A · The company itself

“While we require our suppliers to operate in compliance with all applicable laws and our operating guidelines which promote ethical and socially responsible business practices, any violation of labor, environmental, health, and safety or other laws, or any divergence by an independent supplier's labor practices from generally accepted industry standards, could damage our reputation, disrupt our sourcing capabilities, and increase the cost of doing business, adversely affecting our results of operations.”

Annual report 2026A · The company itself

“Our Employees As of March 28, 2026, we had approximately 23,600 employees, comprised of approximately 15,600 full-time and 8,000 part-time employees.”

Annual report 2026A · The company itself

“We also rely upon third-party transportation providers for substantially all of our product shipments, including shipments to and from our distribution centers, to our stores and shop-within-shops, and to our digital commerce and wholesale customers. Our utilization of these shipping services is subject to various risks, including, but not limited to, potential labor shortages (stemming from labor disputes, strikes, or otherwise), severe weather, and pandemic diseases, which could delay the timing of shipments, and increases in wages and fuel prices, which could result in higher transportation costs.”

Annual report 2026A · The company itself

“We seek to strengthen supplier relationships, increase transparency and traceability, advance empowerment and life-skills programs for the people who make our products and ensure systems are in place to deliver fair and timely compensation.”

Annual report 2026A · The company itself

“Risks Related to Macroeconomic Conditions Economic, political, and other conditions, including the imposition of significant new tariffs or other changes to existing trade policies and agreements, may adversely affect the global economy and/or the level of consumer purchases of discretionary items and luxury retail products, including our products.”

Annual report 2026A · The company itself

“Other recent economic conditions, including increases in oil and other energy prices, 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. and Europe) continue to resort to promotional activity in an attempt to offset traffic declines and increase conversion.”

Annual report 2026A · The company itself

“Consumer purchases of discretionary items and luxury retail products, including our products, tend to decline during periods of economic weakness, high inflation, or rising interest rates, and at other times when disposable income is lower.”

Annual report 2026A · The company itself

“A decision by the controlling owner of a group of stores or any other significant customer, whether motivated by economic conditions, financial difficulties, competitive conditions, or otherwise, to decrease or eliminate the amount of merchandise purchased from us or our licensing partners or to change their manner of doing business with us or our licensing partners or a change based on their new strategic and operational initiatives, including their continued focus on 31 further development of "private labels" and exclusive product offerings in an effort to differentiate themselves from competitors, could have a material adverse effect on our business.”

Annual report 2026A · The company itself

“The department store sector has experienced numerous consolidations, restructurings, bankruptcies, and other ownership changes in recent times, which could potentially increase in frequency as a result of current adverse economic conditions, including changes to existing trade policies and agreements (including higher tariffs on U.S. imports), ongoing inflationary pressures and high interest rates, and/or changes in consumer shopping preferences, such as the continued shift away from traditional brick and mortar wholesale retailers to larger online retailers. Such disruptions have typically resulted in actual or anticipated bankruptcies (such as Saks Global's recent bankruptcy filing), store closures (such as Macy's previously announced plan to close 150 stores through calendar 2028), centralized purchasing decisions, and increased emphasis on inventory management and productivity, which could result in fewer stores carrying our products or reduced demand of our products by our wholesale customers.”

Annual report 2026A · The company itself

“In addition, certain of our leases include renewal options or terms that require rental payments to be adjusted to reflect current fair market rental rates, which could be significantly higher than the prior term's rental payments. Further, as each of our leases naturally expires, we may be unable to negotiate renewals, either on commercially acceptable terms or at all, which could lead to store closures resulting in lost sales.”

Annual report 2026A · The company itself

“Our business is subject to risks related to leasing real estate and other assets under long-term, non-cancellable leases. We generally operate most of our stores and corporate facilities under long-term, non-cancellable leasing arrangements.”

Annual report 2026A · The company itself

“We implement new store design concepts and other renovations to our existing store portfolio as part of our growth strategy. There can be no assurance that any of our store designs will resonate with customers or otherwise achieve the desired sales and profitability measures necessary to recover our initial capital investments.”

Annual report 2026A · The company itself

“Any failure on our part, or on the part of our third-party digital partners, to provide attractive, reliable, secure, and user-friendly digital commerce platforms, including mobile apps, and to effectively leverage AI could negatively impact our customers' shopping experience resulting in 26 reduced website traffic, diminished loyalty to our brands, and lost sales.”

Annual report 2026A · The company itself

“However, significant counterfeiting and imitation of our products continue to exist, and emerging AI technologies may further facilitate the unauthorized replication, imitation, and distribution of products, branding, logos, marketing materials, and digital content that closely resemble our own.”

Annual report 2026A · The company itself

“Further, our employees may intentionally or inadvertently cause data security breaches that result in the unauthorized access or release of our private and sensitive information, the risk of which may be 33 compounded as the use of AI becomes more prevalent. The extensive use of AI-enabled smartphones, tablets, and other wireless devices, as well as our hybrid work policy, under which a substantial portion of our corporate employees work remotely for part of the work week, heighten these and other operational risks.”

Annual report 2026A · The company itself

“AI tools and systems may be unavailable, fail to perform as intended, or produce inaccurate or misleading outputs, and may be vulnerable to manipulation. When incorporated into our business processes, such risks could result in errors, inefficiencies, operational disruptions, or diminished customer experiences, and employees' use of AI tools may not always comply with our policies or controls.”

Annual report 2026A · The company itself

“We continue to optimize our customer experience globally with the introduction of numerous features including Ask Ralph, a conversational artificial intelligence ("AI") shopping experience that invites consumers to engage with, and be inspired by, Ralph Lauren's unique and iconic take on style.”

Annual report 2026A · The company itself

“Ralph Lauren brands are also represented in several gaming platforms, providing digital apparel offerings and virtual brand experiences that attract younger consumers.”

Annual report 2026A · The company itself

“Our digital advertising programs focus on high impact and innovative digital media outlets, which allow us to convey our key brand messages and lifestyle positioning. We also develop digital editorial initiatives that allow for deeper education and engagement around the Ralph Lauren lifestyle. We deploy these marketing and advertising initiatives through online, mobile, video, email, and social media.”

Annual report 2026A · The company itself

“For example, we continue to enhance our solutions for advanced analytics, furthering our use of AI, both predictive and generative, and machine learning for areas such as planning, marketing, and personalization.”

Annual report 2026A · The company itself

“Achievement of our growth strategy may require investment in new capabilities, distribution channels, and technologies, such as those related to our Next Generation Transformation project, as described in Item 1 — "Business — Recent Developments." These investments may result in short-term costs without accompanying current revenues and, therefore, may be dilutive to our earnings in the short term.”

Annual report 2026A · The company itself

“In addition, customers are increasingly utilizing tools and devices powered by AI as part of their shopping experience.”

Annual report 2026A · The company itself

“The success of our business also depends on our ability to continue to develop and maintain a reliable omni-channel experience for our customers, as well as our ability to maintain and/or introduce new Online to Offline experiences, such as those described in Item 1 — "Business — Digital Ecosystem." Our business has evolved from an in-store experience to a shopping experience through multiple technologies, including computers, smartphones, tablets, and other devices, as well as AI-enabled devices, as our customers have become increasingly technologically savvy and expect a seamless omni-channel experience regardless of whether they are shopping in stores or online.”

Annual report 2026A · The company itself

“As described in Item 1 — "Business — Recent Developments," our Next Generation Transformation project, which began during Fiscal 2024, entails upgrading and enhancing our technology infrastructure, including AI and machine learning capabilities, to better enable us to implement process changes to improve productivity and operational efficiencies on a global scale.”

Annual report 2026A · The company itself

“Any failure on our part, or on the part of our third-party digital partners, to provide attractive, reliable, secure, and user-friendly digital commerce platforms, including mobile apps, and to effectively leverage AI could negatively impact our customers' shopping experience resulting in 26 reduced website traffic, diminished loyalty to our brands, and lost sales.”

Annual report 2026A · The company itself

“Recent Developments Next Generation Transformation Project We began a multi-year global project in Fiscal 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 is expected to continue over the next several years, with implementation expected to occur in phases by region and/or capability, and involves the redesigning 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, 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.”

Annual report 2026A · The company itself

“Marketing and Advertising Our marketing and advertising programs communicate the themes and images of our brands and are integral to the success of our product offerings. The majority of our advertising programs are created and executed by our in-house creative and advertising agency to ensure consistency of presentation, which are complemented by our marketing experts in each region who help to execute our localized strategies. We create distinctive image advertising for our brands, conveying the particular message of each one within the context of the overall Ralph Lauren portfolio.”

Annual report 2026A · The company itself

“Our digital advertising programs focus on high impact and innovative digital media outlets, which allow us to convey our key brand messages and lifestyle positioning. We also develop digital editorial initiatives that allow for deeper education and engagement around the Ralph Lauren lifestyle. We deploy these marketing and advertising initiatives through online, mobile, video, email, and social media.”

Annual report 2026A · The company itself

“Achievement of our growth strategy may require investment in new capabilities, distribution channels, and technologies, such as those related to our Next Generation Transformation project, as described in Item 1 — "Business — Recent Developments." These investments may result in short-term costs without accompanying current revenues and, therefore, may be dilutive to our earnings in the short term.”

Annual report 2026A · The company itself

“The success of our business also depends largely on our ability to continue to maintain, enhance, and expand our digital footprint and capabilities. Consumers continue to increasingly shop online using computers, smartphones, tablets, and other devices, and also use such devices to perform comparison shopping on a real-time basis.”

Annual report 2026A · The company itself

“The success of our business also depends on our ability to continue to develop and maintain a reliable omni-channel experience for our customers, as well as our ability to maintain and/or introduce new Online to Offline experiences, such as those described in Item 1 — "Business — Digital Ecosystem." Our business has evolved from an in-store experience to a shopping experience through multiple technologies, including computers, smartphones, tablets, and other devices, as well as AI-enabled devices, as our customers have become increasingly technologically savvy and expect a seamless omni-channel experience regardless of whether they are shopping in stores or online.”

Annual report 2026A · The company itself

“As described in Item 1 — "Business — Recent Developments," our Next Generation Transformation project, which began during Fiscal 2024, entails upgrading and enhancing our technology infrastructure, including AI and machine learning capabilities, to better enable us to implement process changes to improve productivity and operational efficiencies on a global scale.”

Annual report 2026A · The company itself

“The rapid increase of online shopping driven by changes in consumer shopping preferences has amplified certain of these risks resulting in capacity constraints.”

Annual report 2026A · The company itself

“The success of our business also depends largely on our ability to continue to maintain, enhance, and expand our digital footprint and capabilities. Consumers continue to increasingly shop online using computers, smartphones, tablets, and other devices, and also use such devices to perform comparison shopping on a real-time basis.”

Annual report 2026A · The company itself

“We are dependent on information technology systems and networks, including the Internet, for a significant portion of our direct-to-consumer sales, including our digital commerce operations and retail business credit card transaction authorization and processing (among other electronic payment methods that we accept). We are also responsible for storing data relating to our customers and employees and rely on third parties for the operation of our digital commerce sites and for the various social media tools and websites we use as part of our marketing strategy.”

Annual report 2026A · The company itself

“Our digital commerce sites present the Ralph Lauren lifestyle online, while offering a broad array of our apparel, handbags, footwear & accessories, fragrances, home, and hospitality product lines.”

Annual report 2026A · The company itself

“Directly-Operated Digital Commerce Websites In addition to our stores, our retail business sells products online in North America, Europe, and Asia through our various directly-operated digital commerce sites, which include www.RalphLauren.com, among others. We continue to expand accessibility to our digital flagships globally while localizing language, currencies, payment methods, product assortments, and content.”

Annual report 2026A · The company itself

“We also sell our products online through various third-party digital pure-play sites to reach a broader audience of consumers, including younger consumers, and amplify our brand messages. On many of these sites, we have created digital shop-in-shop environments with a consistent brand experience, tailored product stories, and an assortment that is carefully curated by our merchants.”

Annual report 2026A · The company itself

“We sell our wholesale merchandise primarily to major department stores, specialty stores, and third-party digital partners across North America, Europe, Asia, Australia, and New Zealand, and extend credit based on an evaluation of each wholesale customer's financial condition, usually without requiring collateral.”

Annual report 2026A · The company itself

“In connection with our digital commerce operations, we engage consumers through various digital and social media platforms, which are supported through our collaboration with influencers who have an authentic connection to our brand.”

Annual report 2026A · The company itself

“Marketing and Advertising Our marketing and advertising programs communicate the themes and images of our brands and are integral to the success of our product offerings. The majority of our advertising programs are created and executed by our in-house creative and advertising agency to ensure consistency of presentation, which are complemented by our marketing experts in each region who help to execute our localized strategies. We create distinctive image advertising for our brands, conveying the particular message of each one within the context of the overall Ralph Lauren portfolio.”

Annual report 2026A · The company itself

“We also conduct a variety of public relations activities, including fashion presentations in major cities such as New York City, Paris and Milan. Such fashion events, in addition to celebrity dressing occasions, including those related to red carpet events, weddings, and major sporting events, and events hosted in our stores and restaurants, including The Polo Bar in New York City, generate extensive domestic and international media and social coverage.”

Annual report 2026A · The company itself

“We are the official outfitter for all on-court officials at the Wimbledon and U.S. Open tennis tournaments. These tournaments provide worldwide exposure for our brand in a relevant lifestyle environment.”

Annual report 2026A · The company itself

“We also continue to be an Official Outfitter of the U.S. Olympic and Paralympic Teams, providing the Opening and Closing Ceremony Uniform apparel and a collection of Villagewear apparel and accessories available to men, women, and children, with the right to manufacture, distribute, advertise, promote, and sell products in the U.S. Most recently, we dressed Team USA for the 2026 Winter Olympic and Paralympic Games in Milan, Italy and the 2024 Summer Olympic and Paralympic Games in Paris, and we will be dressing the team for the upcoming 2028 Summer Olympic and Paralympic Games in Los Angeles.”

Annual report 2026A · The company itself

“Changes in management, reduced sales of licensed products, poor execution, or financial difficulties with respect to any of our licensing partners could adversely affect our revenues, both directly from reduced licensing revenue received and indirectly from reduced sales of our other products.”

Annual report 2026A · The company itself

“Our Licensing Business Through licensing alliances, we combine our consumer insight, design, and marketing skills with the specific product or geographic competencies of our licensing partners to create and build new businesses. We generally seek out licensing partners who are leaders in their respective markets, contribute the majority of product development costs, provide the operational infrastructure required to support the business, and own the inventory.”

Annual report 2026A · The company itself

“We rely on our licensing partners to preserve the value of our licenses. Failure to maintain licensing partners could harm our business.”

Annual report 2026A · The company itself

“We have established targets to reduce greenhouse gas emissions across our operations and supply chain and to improve water-use efficiency, particularly in water‑stressed basins.”

Annual report 2026A · The company itself

“We may not be successful in the expansion of our multi-channel distribution network or accelerating growth in certain product categories. Implementation of our growth strategy involves the continuation and expansion of our multi-channel distribution network, including within international markets such as China, which is subject to many factors, including, but not limited to, our ability to (i) identify new or underpenetrated markets where our products and brand will be accepted by consumers; (ii) attract customers, particularly in new markets; (iii) identify desirable freestanding and department store locations, the availability of which may be out of our control; (iv) negotiate acceptable lease terms, including desired tenant improvement allowances; (v) efficiently and cost effectively build-out stores and shop-within-shops; (vi) source sufficient inventory levels timely to meet the needs of the new stores and shop-within-shops; (vii) hire, train, and retain competent store personnel; and (viii) integrate new stores and shop-within-shops into our existing systems and operations.”

Annual report 2026A · The company itself

“Timeless by Design is our intentional approach to driving positive impact across our value chain. Building on the meaningful progress made over the past several years, the next phase of our strategy, Timeless by Design 2030, advances our efforts with a focus on four pillars: Partner for Impact, Protect Natural Resources, Engage & Enable Teams, and Care for Communities.”

Annual report 2026A · The company itself

“•Hospitality — Continuing to engage our consumers with experiential and unique expressions of the brand, our hospitality portfolio is a natural extension of the World of Ralph Lauren as expressed through the culinary arts. Ralph Lauren's global hospitality collection is comprised of our restaurants including The Polo Bar in New York City, RL Restaurant located in Chicago, Ralph's located in Paris, The Bar at Ralph Lauren located in Milan, Ralph's Bar located in Chengdu, and our Ralph's Coffee concept in various cities around the world.”

Annual report 2026A · The company itself

“Product Design Our products reflect a timeless and innovative interpretation of American style with a strong global appeal. Our consistent emphasis on new and distinctive design has been an important contributor to the prominence, strength, and reputation of the Ralph Lauren brands.”

Annual report 2026A · The company itself

“Distribution To facilitate global distribution, our products are shipped from manufacturers to a network of distribution centers around the world for inspection, sorting, packing, and delivery to our retail locations and digital commerce and wholesale customers.”

Annual report 2026A · The company itself

“As the vast majority of our products are manufactured by foreign suppliers, the enactment of new legislation or the administration of current international trade regulations or executive action affecting textile agreements, or changes in sourcing patterns could adversely affect our operations.”

Annual report 2026A · The company itself

“Risks Related to Macroeconomic Conditions Economic, political, and other conditions, including the imposition of significant new tariffs or other changes to existing trade policies and agreements, may adversely affect the global economy and/or the level of consumer purchases of discretionary items and luxury retail products, including our products.”

Annual report 2026A · The company itself

“In April 2025, the U.S. announced significant changes to its trade policies under the authority of the International Emergency Economic Powers Act ("IEEPA"), including widespread tariff increases on imported goods and the potential for additional tariffs and further increases to existing tariffs, and revisions or terminations of existing trade agreements. In response, many countries announced retaliatory tariffs on U.S. exports and other trade restrictions.”

Annual report 2026A · The company itself

“Additionally, our industry is subject to significant pricing pressure caused by many factors, including inflationary pressures, intense competition and a highly promotional retail environment, consolidation in the retail industry, pressure from retailers to reduce the costs of products, excess inventory levels in the marketplace, and changes in consumer spending patterns.”

Annual report 2026A · The company itself

“Changes to existing trade policies and agreements, including new or higher tariffs on U.S. imports, could exacerbate such pricing pressures.”

Annual report 2026A · The company itself

“As previously discussed, recent changes in U.S. trade policies, including tariff-related developments surrounding the IEEPA and other authorities, have increased uncertainty regarding the future relationship between the U.S. and other countries, as well as the potential for an ensuing global trade war and economic slowdown. The imposition of new tariffs could result in potential retaliatory tariffs from other countries and could continue to impact our supply chain costs.”

Annual report 2026A · The company itself

“As approximately 96% of our products are currently produced outside of the U.S., any material change in tariffs or other trade restrictions could result in a significant increase to our product costs. There can be no assurance that we will be able to offset potential increased product costs through higher sales prices to our consumers, supply chain diversification, or other mitigating measures, which in turn could have a material adverse effect on our business due to lower profitability.”

Annual report 2026A · The company itself

“These include, but are not limited to (i) complying with a variety of U.S. and foreign laws and regulations, including, but not limited to, trade, product labeling, and product safety restrictions, as well as forced labor regulations such as the Uyghur Forced Labor Prevention Act ("UFLPA") and the Countering America's Adversaries Through Sanctions Act ("CAATSA"), both of which prohibit the importation of goods made in whole or in part in certain territories, or by certain identified entities, and grants U.S. Customs & Border Protection the authority to detain, exclude, or seize goods and assess monetary penalties and fines, the Foreign Corrupt Practices Act, which prohibits U.S. companies from making improper payments to foreign officials for the purpose of obtaining or retaining business, and similar foreign country laws, such as the U.K.”

Annual report 2026A · The company itself

“Any resulting changes in international trade relations, legislation and regulations (including those related to tariffs, importation, and taxation), or economic and monetary policies, or heightened diplomatic tensions or political and civil unrest, among other potential impacts (all as described within other risk factors herein), could adversely impact the global economy and our operating results.”

Annual report 2026A · The company itself

“Risks Related to Macroeconomic Conditions Economic, political, and other conditions, including the imposition of significant new tariffs or other changes to existing trade policies and agreements, may adversely affect the global economy and/or the level of consumer purchases of discretionary items and luxury retail products, including our products.”

Annual report 2026A · The company itself

“Other recent economic conditions, including increases in oil and other energy prices, 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. and Europe) continue to resort to promotional activity in an attempt to offset traffic declines and increase conversion.”

Annual report 2026A · The company itself

“Consumer purchases of discretionary items and luxury retail products, including our products, tend to decline during periods of economic weakness, high inflation, or rising interest rates, and at other times when disposable income is lower.”

Annual report 2026A · The company itself

“Additionally, our industry is subject to significant pricing pressure caused by many factors, including inflationary pressures, intense competition and a highly promotional retail environment, consolidation in the retail industry, pressure from retailers to reduce the costs of products, excess inventory levels in the marketplace, and changes in consumer spending patterns.”

Annual report 2026A · The company itself

“In addition, the entire apparel industry, including our Company, has faced, and could continue to face, supply chain challenges, including reduced freight availability, port congestion, labor shortages, and rising wages, oil prices and other energy costs, among others, as a result of unfavorable macroeconomic conditions and other factors.”

Annual report 2026A · The company itself

“In addition, the cost and availability of raw materials used to manufacture our products are subject to significant fluctuation as a result of certain of the beforementioned factors (including inflationary pressures), as well as crop yields which could be negatively impacted by severe weather conditions.”

Annual report 2026A · The company itself

“Our products must appeal to a broad range of consumers worldwide across various price points whose preferences cannot be predicted with certainty and are subject to rapid change, influenced by fashion trends, economic conditions, and weather conditions, among other factors.”

Annual report 2026A · The company itself

“In addition, the cost and availability of raw materials used to manufacture our products are subject to significant fluctuation as a result of certain of the beforementioned factors (including inflationary pressures), as well as crop yields which could be negatively impacted by severe weather conditions.”

Annual report 2026A · The company itself

“Our distribution centers generally utilize computer-controlled and automated equipment, which are subject to various risks, including software viruses, security breaches, power interruptions, or other system failures. If any of our distribution centers were to close or become inoperable or inaccessible for any reason, including, but not limited to, natural disasters, severe weather, labor shortages, fires, and system failures, pandemic diseases, or if we fail to successfully consolidate existing facilities or transition to new facilities, we could experience a substantial loss of inventory, disruption of deliveries to our customers and our stores, increased costs, and longer lead times associated with the distribution of products during the period that would be required to reopen or replace the facility.”

Annual report 2026A · The company itself

“The occurrence of natural disasters or other catastrophic events may result in sudden disruptions in the business operations of the local and regional economies affected, as well as the global economy as a whole, including, but not limited to, shortages and/or rising costs of raw materials or energy, public health issues, system failures, and reduced retail traffic.”

Annual report 2026A · The company itself

“Increased frequency and/or severity of extreme weather events due to climate change could adversely impact global supply chains, including the availability, quality, and cost of raw materials (such as cotton, a key raw material used in the production of our products that is highly susceptible to severe weather conditions), the ability of our manufacturers to fulfill our orders timely and to our specifications, and shipping disruptions and/or higher freight costs.”

Annual report 2026A · The company itself

“Unfavorable economic conditions and other factors, such as pandemic diseases and other health-related concerns, political unrest, military conflicts, and acts of terrorism, may also reduce consumers' willingness and ability to travel to major cities and vacation destinations in which our stores and shop-within-shops are located.”

Annual report 2026A · The company itself

“Infectious disease outbreaks could have a material adverse effect on our business. Widespread public health emergencies and infectious disease outbreaks (including pandemics, epidemics, resurgences of endemic diseases, and the emergence of new or more transmissible variants or pathogens), whether occurring domestically or internationally, have had, and could again in the future, have a material adverse effect on our business, results of operations, and financial condition. Such events may result in, among other things, government mandates or recommendations (including quarantines, travel restrictions, or other public safety measures), changes in consumer behavior and demand, and operational disruptions.”

Annual report 2026A · The company itself

“Our distribution centers generally utilize computer-controlled and automated equipment, which are subject to various risks, including software viruses, security breaches, power interruptions, or other system failures. If any of our distribution centers were to close or become inoperable or inaccessible for any reason, including, but not limited to, natural disasters, severe weather, labor shortages, fires, and system failures, pandemic diseases, or if we fail to successfully consolidate existing facilities or transition to new facilities, we could experience a substantial loss of inventory, disruption of deliveries to our customers and our stores, increased costs, and longer lead times associated with the distribution of products during the period that would be required to reopen or replace the facility.”

Annual report 2026A · The company itself

“In addition, we may remain obligated under the applicable lease for, among other things, payment of the base rent for the remaining lease term, even after the space is exited or otherwise closed and even if such closures are beyond our control (such as forced store closures resulting from pandemic diseases).”

Annual report 2026A · The company itself

“The success of our business depends on our ability to respond to constantly changing fashion and retail trends and consumer preferences in a timely manner, develop products that resonate with our existing customers and attract new customers, and provide a seamless shopping experience to our customers. The industries in which we operate have historically been subject to rapidly changing fashion trends and consumer preferences. Our success depends in large part on our ability to originate and define fashion product and home product trends, as well as to anticipate, gauge, and react to changing consumer preferences in a timely manner.”

Annual report 2026A · The company itself

“Our failure to continue to shorten lead times or to correctly anticipate consumer preferences and demand could result in the build-up of excess inventory.”

Annual report 2026A · The company itself

“Consumer perception may also be influenced by geopolitical developments, including periods of heightened anti-American sentiment in certain international markets, as well as our partnership with athletes and other public figures, our relationships with wholesale customers, licensees, and suppliers, our views on political and social issues, or our long-term environmental and social initiatives as a whole, among other factors.”

Annual report 2026A · The company itself

“Consumer purchases of discretionary items and luxury retail products, including our products, tend to decline during periods of economic weakness, high inflation, or rising interest rates, and at other times when disposable income is lower.”

Annual report 2026A · The company itself

“Prolonged periods of adverse economic conditions or business disruptions in any of our key regions, or a combination thereof, could impede our ability to pay our obligations as they become due or return value to our shareholders, as well as delay previously planned expenditures related to our operations.”

Annual report 2026A · The company itself

“Additionally, interest rates have been at elevated levels in recent years and it is uncertain if and when such rates may decline. Higher interest rates may increase the cost of any borrowings under our various credit facilities, as well as negatively impact consumer sentiment and the global economy as a whole, which could result in a material adverse effect on our business.”

Annual report 2026A · The company itself

“In addition, the entire apparel industry, including our Company, has faced, and could continue to face, supply chain challenges, including reduced freight availability, port congestion, labor shortages, and rising wages, oil prices and other energy costs, among others, as a result of unfavorable macroeconomic conditions and other factors.”

Annual report 2026A · The company itself

“We have also incurred, and may continue to incur, higher freight and other logistic costs as a result of certain of the beforementioned factors.”

Annual report 2026A · The company itself

“We also rely upon third-party transportation providers for substantially all of our product shipments, including shipments to and from our distribution centers, to our stores and shop-within-shops, and to our digital commerce and wholesale customers. Our utilization of these shipping services is subject to various risks, including, but not limited to, potential labor shortages (stemming from labor disputes, strikes, or otherwise), severe weather, and pandemic diseases, which could delay the timing of shipments, and increases in wages and fuel prices, which could result in higher transportation costs.”

Annual report 2026A · The company itself

“Our business is exposed to domestic and foreign currency fluctuations. Changes in exchange rates between the U.S. Dollar and other currencies impact our financial results from a transactional perspective, as our foreign operations generally purchase inventory in U.S.”

Annual report 2026A · The company itself

“Given that we source the vast majority of our products overseas, the cost of these products to our foreign operations may be affected by changes in the value of their respective local currencies. In addition, changes in exchange rates of non-U.S. Dollar currencies impact our financial results, as our operations incur certain other costs that are denominated in various other foreign currencies.”

Annual report 2026A · The company itself

“Changes in currency exchange rates may also impact consumers' willingness or ability to travel abroad and/or purchase our products while traveling.”

Annual report 2026A · The company itself

“In addition, the regulatory environment relating to information security and privacy is becoming increasingly more demanding with frequent new requirements surrounding the handling, protection, and use of personal and sensitive information. We may incur significant costs in complying with the various applicable state, federal, and foreign laws regarding protection of, and unauthorized disclosure of, personal information.”

Annual report 2026A · The company itself

“Executive actions at the U.S. federal level and legislation in multiple U.S. states have sought to restrict or penalize corporate consideration of ESG factors, while jurisdictions in Europe and certain U.S. states have simultaneously expanded ESG-related mandates and disclosure requirements. This increasingly divergent regulatory environment creates operational complexity and legal risk, as actions taken to comply with or advance citizenship and sustainability objectives in one jurisdiction may expose us to criticism, regulatory scrutiny, or potential penalties in another, including limitations on our ability to do business.”

Annual report 2026A · The company itself

“Our business is exposed to domestic and foreign currency fluctuations. Changes in exchange rates between the U.S. Dollar and other currencies impact our financial results from a transactional perspective, as our foreign operations generally purchase inventory in U.S.”

Annual report 2026A · The company itself

“Given that we source the vast majority of our products overseas, the cost of these products to our foreign operations may be affected by changes in the value of their respective local currencies. In addition, changes in exchange rates of non-U.S. Dollar currencies impact our financial results, as our operations incur certain other costs that are denominated in various other foreign currencies.”

Annual report 2026A · The company itself

“The legal and regulatory environment governing AI is rapidly evolving. Emerging laws and regulations in jurisdictions where we operate may impose new obligations, limit the use of AI, or require changes to our products, processes, or controls.”

Annual report 2026A · The company itself

“We do not own or operate any manufacturing facilities and depend exclusively on independent third parties for the manufacture of our products.”

Annual report 2026A · The company itself

“Sourcing, Production and Quality We contract for the manufacture of our products with suppliers and do not own or operate any production facilities. Approximately 300 different suppliers worldwide produce our apparel, handbags, footwear & accessories, and home products, with no one supplier providing more than 5% of our total products (by dollar value) during Fiscal 2026.”

Annual report 2026A · The company itself

“These include, but are not limited to (i) complying with a variety of U.S. and foreign laws and regulations, including, but not limited to, trade, product labeling, and product safety restrictions, as well as forced labor regulations such as the Uyghur Forced Labor Prevention Act ("UFLPA") and the Countering America's Adversaries Through Sanctions Act ("CAATSA"), both of which prohibit the importation of goods made in whole or in part in certain territories, or by certain identified entities, and grants U.S. Customs & Border Protection the authority to detain, exclude, or seize goods and assess monetary penalties and fines, the Foreign Corrupt Practices Act, which prohibits U.S. companies from making improper payments to foreign officials for the purpose of obtaining or retaining business, and similar foreign country laws, such as the U.K.”

Annual report 2026A · The company itself

“As previously discussed, recent changes in U.S. trade policies, including tariff-related developments surrounding the IEEPA and other authorities, have increased uncertainty regarding the future relationship between the U.S. and other countries, as well as the potential for an ensuing global trade war and economic slowdown. The imposition of new tariffs could result in potential retaliatory tariffs from other countries and could continue to impact our supply chain costs.”

Annual report 2026A · The company itself

“The global economy has also been negatively impacted by ongoing military conflicts, including the conflicts involving Iran and other hostilities in the Middle East. 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 implications resulting from these and other military conflicts, including inflationary pressures, unfavorable foreign currency exchange rates, increases in energy prices, food shortages, and financial market volatility, among other factors, which have adversely impacted consumer sentiment and confidence.”

Annual report 2026A · The company itself

“Unfavorable economic conditions and other factors, such as pandemic diseases and other health-related concerns, political unrest, military conflicts, and acts of terrorism, may also reduce consumers' willingness and ability to travel to major cities and vacation destinations in which our stores and shop-within-shops are located.”

Annual report 2026A · The company itself

“Consumer perception may also be influenced by geopolitical developments, including periods of heightened anti-American sentiment in certain international markets, as well as our partnership with athletes and other public figures, our relationships with wholesale customers, licensees, and suppliers, our views on political and social issues, or our long-term environmental and social initiatives as a whole, among other factors.”

Annual report 2026A · The company itself

“Customs & Border Protection the authority to detain, exclude, or seize goods and assess monetary penalties and fines, the Foreign Corrupt Practices Act, which prohibits U.S. companies from making improper payments to foreign officials for the purpose of obtaining or retaining business, and similar foreign country laws, such as the U.K.”

Annual report 2026A · The company itself

“Any resulting changes in international trade relations, legislation and regulations (including those related to tariffs, importation, and taxation), or economic and monetary policies, or heightened diplomatic tensions or political and civil unrest, among other potential impacts (all as described within other risk factors herein), could adversely impact the global economy and our operating results.”

Annual report 2026A · The company itself

“Our profitability may decline if we are unable to effectively manage inventory or as a result of increasing pressure on margins. The nature of the apparel retail industry requires us to carry a significant amount of inventory, especially prior to the peak holiday selling season when we build up our inventory levels in order to meet anticipated consumer demand.”

Annual report 2026A · The company itself

“Our failure to continue to shorten lead times or to correctly anticipate consumer preferences and demand could result in the build-up of excess inventory.”

Annual report 2026A · The company itself

“Conversely, if we underestimate consumer demand for our products or if manufacturers fail to supply quality products in a timely manner, we may experience inventory shortages, which may negatively impact customer relationships, diminish brand loyalty, and result in lost sales.”

Annual report 2026A · The company itself

“Prolonged periods of adverse economic conditions or business disruptions in any of our key regions, or a combination thereof, could impede our ability to pay our obligations as they become due or return value to our shareholders, as well as delay previously planned expenditures related to our operations.”

Annual report 2026A · The company itself

“Increased frequency and/or severity of extreme weather events due to climate change could adversely impact global supply chains, including the availability, quality, and cost of raw materials (such as cotton, a key raw material used in the production of our products that is highly susceptible to severe weather conditions), the ability of our manufacturers to fulfill our orders timely and to our specifications, and shipping disruptions and/or higher freight costs.”

Annual report 2026A · The company itself

“Further, our employees may intentionally or inadvertently cause data security breaches that result in the unauthorized access or release of our private and sensitive information, the risk of which may be 33 compounded as the use of AI becomes more prevalent. The extensive use of AI-enabled smartphones, tablets, and other wireless devices, as well as our hybrid work policy, under which a substantial portion of our corporate employees work remotely for part of the work week, heighten these and other operational risks.”

Annual report 2026A · The company itself

“Additionally, the technology we use to protect our systems from being breached or compromised could become outdated as a result of advances in computer capabilities or other technological developments, thereby requiring us to make further investments in capital or other resources to protect us against cyber-attacks, the cost of which could be significant.”

Annual report 2026A · The company itself

“•Asia — Our Asia segment, representing approximately 26% of our Fiscal 2026 net revenues, primarily consists of sales of our Ralph Lauren branded apparel, handbags, footwear & accessories, home, and related products made through our retail and wholesale businesses in Asia, Australia, and New Zealand.”

Annual report 2026A · The company itself

“In Fiscal 2026, the vast majority of our products (by dollar value) were produced outside of the U.S., primarily in Asia, Europe, and Latin America, with approximately 21% of our products sourced from Vietnam, 16% from Cambodia, and 11% from India.”

Annual report 2026A · The company itself

“We sell our wholesale merchandise primarily to major department stores, specialty stores, and third-party digital partners across North America, Europe, Asia, Australia, and New Zealand, and extend credit based on an evaluation of each wholesale customer's financial condition, usually without requiring collateral.”

Annual report 2026A · The company itself

“Our wholesale business in North America is comprised primarily of sales to department stores and, to a lesser extent, specialty stores. •Europe — Our Europe segment, representing approximately 31% of our Fiscal 2026 net revenues, primarily consists of sales of our Ralph Lauren branded apparel, handbags, footwear & accessories, home, and related products made through our retail and wholesale businesses in Europe and emerging markets.”

Annual report 2026A · The company itself

“In Fiscal 2026, the vast majority of our products (by dollar value) were produced outside of the U.S., primarily in Asia, Europe, and Latin America, with approximately 21% of our products sourced from Vietnam, 16% from Cambodia, and 11% from India.”

Annual report 2026A · The company itself

“We sell our wholesale merchandise primarily to major department stores, specialty stores, and third-party digital partners across North America, Europe, Asia, Australia, and New Zealand, and extend credit based on an evaluation of each wholesale customer's financial condition, usually without requiring collateral.”

Annual report 2026A · The company itself

“Our Segments We organize our business into the following three reportable segments: •North America — Our North America segment, representing approximately 41% of our Fiscal 2026 net revenues, primarily consists of sales of our Ralph Lauren branded apparel, handbags, footwear & accessories, home, and related products made through our retail and wholesale businesses primarily in the U.S. and Canada.”

Annual report 2026A · The company itself

“We sell our wholesale merchandise primarily to major department stores, specialty stores, and third-party digital partners across North America, Europe, Asia, Australia, and New Zealand, and extend credit based on an evaluation of each wholesale customer's financial condition, usually without requiring collateral.”

Annual report 2026A · The company itself

“In Fiscal 2026, the vast majority of our products (by dollar value) were produced outside of the U.S., primarily in Asia, Europe, and Latin America, with approximately 21% of our products sourced from Vietnam, 16% from Cambodia, and 11% from India.”

Annual report 2026A · The company itself