=Ralph Lauren (RL) reported earnings on Wed 10 Aug 2016 (b/o)

Ralph Lauren beats by $0.17, beats on revs; guides Q2 rev above consensus; reaffirms FY17 outlook :

• Reports Q1 (Jun) earnings of $1.06 per share, excluding non-recurring items, $0.17 better thanthe Capital IQ Consensus of $0.89; revenues fell 4.1% year/year to $1.55 bln vs the $1.53 bln Capital IQ Consensus. The decline in reported net revenues was in line with the guidance provided in June of a mid-single digit revenue decline.
  • On a reported basis, international net revenue rose 10% in the first quarter, offset by an 11% decline in North America.
  • Wholesale Revenue. In the first quarter of Fiscal 2017, wholesale segment revenue decreased 5% on both a reported and constant currency basis to $607 million, driven by a decline in North America as the U.S. department store channel continued to experience challenging traffic trends, partially offset by an increase in Europe.
  • Retail Revenue. Retail segment revenue decreased 3% on both a reported and constant currency basis to $907 million in the first quarter, driven by a comparable store sales decline that was partially offset by non-comparable store sales growth. Consolidated comparable store sales decreased 6% on a reported basis and 7% in constant currency during the first quarter, primarily due to lower traffic trends.
• Co sees Q2 rev down mid to high single digits vs. -10% consensus; Operating margin for the second quarter of Fiscal 2017 is expected to be 200-250 basis points below the comparable prior year period. Initiatives under the Way Forward Plan are expected to have a greater impact in the second half of Fiscal 2017 than the second quarter.