Executive Summary

• 2Q sales rose 12.4% driven by strong growth in wholesale footwear and accessories. Same-store sales rose 6.2% driven by strong performance in e-commerce.
• Adjusted operating profit contracted 10 basis points (bps) to 11.0% of sales.
• Adjusted EPS increased 14.6% to $0.47. The company maintained 2019 sales guidance of a 5-7% gain and adjusted diluted EPS guidance of $1.78-1.86 despite an incremental headwind of approximately $0.05 per share reflecting a tariff increase to 25% from 10% on List 3 products imported from China that came into effect on May 10.