This summary is based on the second quarter fiscal 2008 earnings call conducted by Polo Ralph Lauren Corp. (RL: chart) on November 7, 2007.

Management:

Investor Relations: James Hurley
President and COO: Roger N. Farah
Chief Financial Officer: Tracey T. Travis

Key Investors Issues

- Revenues rose 11% to $1.3 billion.
- Net income fell 16% to $115 million or $1.90 a share.
- The company repurchased 1.9 million shares of stock for $150 million.

Half Year Highlights

- Net income declined 6% to $204 million, compared to $217 million in the comparable period in 2006 reflecting higher non-cash amortization of intangible assets and inventory related to purchase accounting for the recent acquisitions.
- Net revenues grew 12% to $2.37 billion from $2.12 billion in the prior year.
- EPS decreased 5% to $1.92 per share from $2.02 last year as a result of a decrease in operating income.

Second Quarter Highlights

Net revenues were $1.3 billion, an increase of 11% over the prior year’s period and exclude the impact of the non-comparable licensee acquisitions.

- Two other recent acquisitions, Ralph Lauren Media and new Polo Japan were already 50% owned by Polo prior to the acquisitions and were already consolidated into results.
- International markets continue to be important drivers of top line growth notably, European business.
- The menswear product experienced strong sales globally and the Chaps product lines were also strong performers.
- Consolidated comparables in the directory operated retail stores experienced 4.5% comparables which was achieved on top of a 9.3% comparable gain in the prior year.

Net income was down 16% to $115 million resulting in a 15% decreased in EPS to $1.90 as a result of non-cash amortization and a higher tax rate.

- Gross profit dollars increased 10% to $695 million though the gross profit rate declined to 53.5% compared to 54.2% in 2006 as a result of the effect of recent acquisitions.
- Operating expenses were up 20% to $503 million from $418 million in the prior year reflecting the impact of newly acquired businesses and higher stock-based compensation costs due to an appreciation in stock price.
- The firm ended the period with $473 million in cash or $130 million in net debt, which reflects short-term borrowings to complete the Impact 21 acquisition.
- In addition, $48 million was invested in capital expenditures for new stores, new shop installations, particularly in Europe, and infrastructure investments.
- The company repurchased 1.9 million shares of stock for $150 million and has $298 million remaining under the existing share repurchase program.

Segment Highlights:

- In Wholesale sales grew 17% to $772 million or 7% excluding the Japan and small leather goods licensee acquisitions fuelled by strong global menswear sales and growth across all product categories in Europe.
- Chaps also a drove revenue growth with both women''s and children''s performing well.
- Operating income increased 12% to $176 million as a result of the higher sales and the operating margin was 22.8%, down from 23.8% in the prior year due to higher SG&A expenses to support new product lines as well as the non-cash effect of purchase accounting related to the recent acquisition.

- In Retail sales rose 7% to $474 million, and overall comparable store sales increased 4.5% reflecting an increase of 5% at Ralph Lauren stores, 4.2% at Factory stores and 5.5% at Club Monica stores.
- RalphLauren.com sales were up 28% over the comparable period driven by double-digit gains in all major product categories.
- In Europe, retail stores continue to post healthy total sales and same store sales gains, while in Japan, retail stores are also growing at an impressive double-digit rate due to broad-based interest in all of the luxury products carried in these stores.
- Operating income was $52 million down from $67 million in 2006, reflecting the non-cash effect of purchase accounting associated with the acquisition of the minority interest in Ralph Lauren Media and increased occupancy expense related to future store expansion plans.

- Licensing royalties were $53 million, 14% below the prior year, and operating income decreased 39% to $23 million.
- The decline in both revenue and operating income was due to the effect of the Impact 21 acquisition despite growth in eyewear and fragrance sales.

Update on Strategic Initiatives:

- In the direct-to-consumer businesses, the firm is on track to have the new 330,000 square foot customer service and fulfillment center dedicated to Ralph Lauren Media fully operational in spring 2008.
- With respect to growing the international businesses, the company continues to benefit from ongoing strength in Europe and Asia, especially for luxury products.
- It has invested in prestigious and high profile locations to support the increasingly global focus of the directly operated retail store development and will be opening multiple locations in Paris to reposition the brand in Europe.
- Efforts are underway to continue to develop and integrate new systems that allow the firm to operate like a truly global organization.

The integration of Japan is proceeding according to plan and there is potential opportunity where the company can leverage in-house design, merchandising and supply chain expertise to have a positive impact on sales and profits.

- On the product front, the firm successfully integrated the small leather goods business into the supply chain and distribution platform.
- The investment in dresses is being leveraged across Lauren American living and Chaps brand and the initial response has been encouraging.
- The firm is also on track to launch a collection of high-end watches and fine Jewelry for fall 2008, which will initially be sold in the directly operated stores and then rolled out to third party distribution in 2009.
- The summer line for American Living was presented to the JCPenny buyers and the. response was very favorable, and plans are underway for the launch of American Living at retail.

Macroeconomic Outlook: