The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
NEW YORK, United States — Apparel maker PVH Corp on Wednesday topped sales and profit estimates and raised its earnings forecasts for the year, driven by double-digit growth in Calvin Klein and Tommy Hilfiger brands.
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.
PVH said Calvin Klein's sales rose 18 percent in the reported quarter, while Tommy Hilfiger reported sales growth of 21 percent.
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.
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Excluding items, PVH earned $2.36 per share, 11 cents more than the average analyst estimate, polled by Thomson Reuters I/B/E/S.
Net sales rose 16.4 percent to $2.31 billion, beating analysts' expectation of $2.28 billion.
Shares of the company were marginally lower at $154.72 in extended trading.
By Nivedita Balu; Editors: Maju Samuel and Anil D'Silva.
The group’s flagship Prada brand grew more slowly but remained resilient in the face of a sector-wide slowdown, with retail sales up 7 percent.
The guidance was issued as the French group released first-quarter sales that confirmed forecasts for a slowdown. Weak demand in China and poor performance at flagship Gucci are weighing on the group.
Consumers face less, not more, choice if handbag brands can't scale up to compete with LVMH, argues Andrea Felsted.
As the French luxury group attempts to get back on track, investors, former insiders and industry observers say the group needs a far more drastic overhaul than it has planned, reports Bloomberg.