PVH boosted by Calvin Klein, Tommy Hilfiger, raises full year guidance

By

Jennifer Braun

Published
Nov 30, 2017

Continued momentum across the Calvin Klein and Tommy Hilfiger businesses once again allowed PVH Corp to exceeded expectations in its third quarter. Consequently, the company has again raised its full year 2017 guidance.
 

As a whole, PVH reported third quarter revenue of $2.4 billion, up 5 percent compared to the prior year period. Earnings per share on a GAAP basis was $3.05 for the third quarter.
 
Revenue in the Calvin Klein business for the quarter increased 6 percent to $943 million. While its international revenue increased 20 percent to $467 million driven by its European wholesale business and strong international retail results, its North America revenue decreased 5 percent to $476 million.

Meanwhile, revenue in the Tommy Hilfiger business for the quarter increased 10 percent to $1 billion with increases in both its international and North American business. International revenue increased 16 percent to $609 million, while North America revenue increased 2 percent to $410 million.
 
“We are very pleased with the strong performance in the third quarter, which exceeded our expectations despite the multiple natural disasters that negatively impacted our North America businesses. We continue to over-deliver against our 2017 plan, even with the additional marketing investments we have made, driven in large part by the continued momentum across our Calvin Klein International and Tommy Hilfiger businesses and ongoing operating efficiencies across our diversified business model,” said Emanuel Chirico, Chairman and CEO, in a news statement.
 
“We believe that the incredible brand power behind Calvin Klein and Tommy Hilfiger will drive continued market share gains and allow us to capitalize on the brands’ significant growth opportunities going forward,” he added.
 
The company now expects 2017 full-year revenue to increase approximately 7 percent. Meanwhile, 2017 earnings per share on a GAAP basis are expected to be in a range of $6.80 to $6.82 compared to $6.79 in 2016.