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PVH Profit Up 38 Percent in Second Quarter

Calvin Klein's sales rose 18 percent in the reported quarter, while Tommy Hilfiger reported sales growth of 15 percent.
Calvin Klein Performance Fall 2018 ft. Jam Hsiao | Source: Courtesy
By
  • Reuters

NEW YORK, United States — Apparel maker PVH Corp reported a 38 percent rise in second-quarter profit on Wednesday and raised its earnings forecasts for the year, helped by higher sales of its Calvin Klein and Tommy Hilfiger brands.

The company now expects earnings of $9.20 to $9.25 per share, compared with its previous forecast of $9.05 to $9.15 per share.

The New York-based apparel maker, like peers Tapestry Inc and Ralph Lauren Corp, has pulled heavily discounted products from department store shelves to regain its premium brand status.

Shares of the company are up 13 percent year to date.

"We are increasing our revenue and earnings guidance for the year, while continuing to take a prudent approach to planning our business in the second half of the year, as we experience increasing macroeconomic and geopolitical volatility around the world," PVH Corp chief executive Emanuel Chirico said in a news release Wednesday.

Many U.S. retailers are bracing for what tariffs imposed by the Trump administration on Chinese goods could mean for their businesses.

Chirico said about $400 million of products are produced in China for the U.S. market.

"There might be an impact from tariffs, although it’s not that big a component for us," he told CNBC.

Chirico said the company has been investing in improving its consumer insights capabilities, increasing efforts around online and offline consumer experiences, and driving engagement with the next generation of consumers.

PVH said Calvin Klein's sales rose 18 percent in the reported quarter, while Tommy Hilfiger reported sales growth of 15 percent.

Net income attributable to the company rose to $165.2 million, or $2.12 per share, in the three months ended Aug. 5, from $119.7 million, or $1.52 per share, a year earlier.

Excluding items, PVH earned $2.18 per share, 8 cents more than the average analyst estimate of $2.10, polled by Thomson Reuters I/B/E/S.

Net sales rose 13.2 percent to $2.22 billion.

By Ankit Ajmera and Melissa Fares; Editors: Sriraj Kalluvila and Lisa Shumaker.

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