NEW YORK, United States — PVH Corp cut its full-year profit and revenue forecast on Wednesday, as the Calvin Klein owner sees pressure from the escalating trade tensions between the US and China and the ongoing protests in Hong Kong.
The company now expects full-year adjusted profit between $9.30 and $9.40 per share compared to prior estimate of $10.20 to $10.30 per share. PVH said the US tariffs on Chinese goods would hit its earnings by about 20 cents in 2019. The company also expects full-year revenue to grow about 1 percent, down from its prior outlook of about 3 percent rise.
Chief Executive Officer Emanuel Chirico said the volatility in the macro environment, the global retail landscape and the continuing escalation of trade tensions between the US and China will cause its business to remain under pressure, as will the ongoing impact of protests in Hong Kong.
Despite the dull outlook, PVH reported better-than-expected quarterly sales boosted by higher demand for its Tommy Hilfiger apparels.
Revenue rose 1.3 percent to $2.36 billion, beating the average analyst estimates of $2.33 billion, according to IBES data from Refinitiv.
Net income attributable to the company rose to $193.5 million, or $2.58 per share, in the second quarter ended Aug. 4, from $165.2 million, or $2.12 per share, a year earlier.
Excluding items, the company earned $2.10 per share. Analysts, on average, had estimated a profit of $1.88 per share.
By Soundarya J; editor Shailesh Kuber.