default-output-block.skip-main
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Calvin Klein Owner PVH Cuts Full-Year Profit, Revenue Forecast

The parent company of Calvin Klein expects US tariffs on Chinese goods to cut earnings by about 20 cents and hit full-year revenue by the end of 2019.
Calvin Klein store | Source: Shutterstock
By
  • Reuters

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.

© 2022 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from News & Analysis
Fashion News, Analysis and Business Intelligence from the leading digital authority on the global fashion industry.

The 10 themes in The State of Fashion 2023, the authoritative annual report from The Business of Fashion and McKinsey & Company, highlight how businesses can deploy realistic yet bold strategies to drive growth, even amid challenging times.




Tim Blanks sits down with Ziad Ahmed, chief executive of JUV Consulting and Stephanie Simon, the former head of community at Clubhouse to reflect on VOICES.


view more

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
How to Build a Profitable DTC Brand
© 2023 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions and Privacy policy.
How to Build a Profitable DTC Brand