Sep 10, 2013
PVH gives weak outlook, says still cautious
Sep 10, 2013
PVH Corp, which makes Calvin Klein and Tommy Hilfiger clothes, gave a sales and profit forecast for the third quarter that missed Wall Street expectations and characterized the global environment as "challenging".
Shares fell 3.7 percent to $127.25 in after-hours trading.
For the third quarter, PVH projected adjusted earnings of about $2.20 a share and revenue of $2.2 billion, while analysts expected a profit of $2.28 a share on revenue of $2.23 billion, according to Thomson Reuters.
PVH said it "remains cautious" about the remainder of the fiscal year. Last month, many retailers, from Saks to Wal-Mart reported disappointing sales for the second quarter as shoppers pulled back on spending.
In the second-quarter, PVH revenue rose 47 percent to $1.97 billion, led by strong sales of Tommy Hilfiger clothes worldwide, which mitigated slow Calvin Klein sales in Southern Europe. In February, PVH bought Warnaco, which added $507 million to the sales.
For the quarter, which ended August 4, PVH reported a net loss of $16 million, or 20 cents per share, compared to a profit of $89.9 million, or $1.22 a share a year earlier.
Excluding expenses related to the Warnaco deal, PVH earned $1.39 a share.
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