Executive Summary

• Ralph Lauren reported 2Q17 adjusted EPS of$1.90, beating the consensus estimate of $1.71.
• Revenues decreased by 7.6%, to $1.82 billion, from $1.97 billion in the second quarter last year, and beat the consensus estimate of $1.81 billion. Comparable-store sales decreased by 8%on a reported basis and by 9% in constant currency versus consensus estimates that called for declines of 6% and 7%, respectively.
• The company maintained its fiscal year 2017 guidance for net revenues to decrease at a low single-digit rate. The company continues to expect its full-year operating margin to be 10%.