Calvin Klein leads positive Q3 for PVH, maintains 2015 EPS guidance

By

Obi Anyanwu

Published
Dec 3, 2015

PVH Corp. on Wednesday announced positive financial results for its third quarter 2015.
 
Revenue for the company increased 3% in the quarter compared to last year’s third quarter revenue, led by Calvin Klein with a 7% increase in revenue, followed by Tommy Hilfiger that increased 4% in revenue. Heritage Brands revenue decreased 5%.

Commenting on these results, Emanuel Chirico, Chairman and Chief Executive Officer, noted, “Our results continued to highlight the strength of our Calvin Klein and Tommy Hilfiger International businesses and improving trends in our Heritage Brands business. The U.S. market during the second half of the quarter and currently in the fourth quarter continues to experience increased softness in traffic trends, in large part driven by the decline in international tourist traffic and spending trends coupled with unseasonably warm weather.”
 
Third quarter earnings per share on a Non-GAAP Basis of $2.66 exceeded the previous guidance of $2.45 to $2.50.

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Mr. Chirico continued, “Despite our better than expected third quarter results, we believe the current holiday season will continue to be very competitive and highly promotional and the volatility we are experiencing in the global environment will remain a headwind for the remainder of the year and into 2016. As a result, we believe it is prudent to maintain our full year earnings per share guidance of $6.90 to $7.00 on a non-GAAP basis.”
 
Revenue for the full year is projected to increase 3% on a constant currency basis compared to 2014. On a constant currency basis, Calvin Klein revenue is expected to increase 8% for the year, Tommy Hilfiger revenue is projected to increase 3% and Heritage Brands revenue is expected to decrease 3%.