Calvin Klein owner PVH beats sales, profit estimates
Fashion giant PVH Corp on Wednesday topped sales and profit estimates in its first quarter for the fiscal year 2018 and raised its earnings forecasts for the year, driven by double-digit growth in Calvin Klein and Tommy Hilfiger brands, boosted by Asia and Europe.
PVH said Calvin Klein’s sales gained 18 percent in the last quarter, driven by an "outstanding performance" in Europe and Asia. International sales at the brand excelled by 25% on last year's first quarter, including a 9% increase in comparable store sales. North America saw an uptick of 10% in sales.
Tommy Hilfiger reported sales growth of 21 percent, lifted by international revenue which also increased 25%, including a 9% increase in comparable store sales. Tommy Hilfiger North America revenue increased 13%.
Net sales rose 16.4 percent to $2.31 billion, beating analysts’ expectation of $2.28 billion.
Net income attributable to the company rose to $179.4 million, or $2.29 per share, in the first quarter ended May 6 from $70.4 million, or 89 cents per share, a year earlier.
Excluding items, PVH earned $2.36 per share, 11 cents more than the average analyst estimate, according to a poll by Thomson Reuters.
“We are applying our consumer-centric mindset by growing our presence where our consumers prefer to shop, creating exciting brand experiences across our distribution channels and capitalising on creative new ways to connect with the next generation of consumers," said Emanuel Chirico, Chairman and Chief Executive Officer.
"We are also driving our long-term vision by making investments to ensure that we adapt to the evolving consumer landscape, without compromising on our commitment to sustainable development throughout the business.”
The company now expects earnings of $9.05 to $9.15 per share, compared with its previous forecast of $9.00 to $9.10 per share.
“We are pleased to increase our earnings guidance for the year, despite the continuing volatility in the macroeconomic and geopolitical environments, which is resulting in a significantly lower foreign currency benefit than previously planned for the year," said Chirico.
"As I think about the strength of our teams, our brands and our platforms, I believe that PVH is in a powerful position to deliver a sustainable trajectory of long-term growth and stockholder value creation. Our strategic priorities will continue to serve as our guidelines for growth and I believe that we will execute on the significant opportunities that PVH has ahead of it.”
Shares of the company were marginally lower at $154.72 in extended trading.
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