=Ralph Lauren (RL) reported earnings on Thur 2 Feb 2017 (b/o)

Ralph Lauren beats by $0.22, reports revs in-line; guides MarQ revenue slightly above consensus; CEO Stefan Larsson to step down :

• Reports Q3 (Dec) earnings of $1.86 per share, excluding non-recurring items, $0.22 better than the Capital IQ Consensus of $1.64; revenues fell 11.9% year/year to $1.71 bln vs the $1.71 bln Capital IQ Consensus.
• In terms of guidance for Q4 (Mar), co expects revenue to be down mid-teens vs consensus of a -17% decline.
• Co also announces that CEO Stefan Larsson and the company have mutually agreed to part ways. Stefan Larsson will stay on until May 1, 2017. A search for a new CEO will be conducted. Co will continue to execute the Way Forward plan announced in June 2016, and CFO Jane Nielsen will lead execution of the plan until a new CEO is hired.
• Co says it continued to drive the execution of the Way Forward plan -- refocusing and evolving its iconic product core, cutting lead times, and aligning supply with demand -- to put the foundation in place to drive demand back to the business.
• Specifically, in DecQ, the co re-focused and evolved its iconic core product offering for Fall 2017; continued to drive quality of sales up by moderating discount levels across retail and wholesale; lowered inventory levels by 23% to better match demand; reduced SKUs for Spring 2017 by over 20%; significantly improved its ability to match supply to demand by reducing pre-market commitments to 15% of inventory buys for Fall 2017 from 60% for Fall 2016; platformed all of its core fabrics, accounting for about 50% of unit volume; co remains on track to get halfway to its goal of a 9-month lead time by the end of this fiscal year and 90% there by the end of next fiscal year.
• Co expects its FY17 restructuring activities to result in approximately $180-$220 mln of annualized expense savings related to its initiatives to streamline the organizational structure and right-size its cost structure and real estate portfolio. Co expects to incur restructuring charges of about $400 mln as a result of the FY17 restructuring activities and a $150 mln inventory charge associated with its Way Forward plan. These charges are expected to be substantially realized by the end of FY17.