Aug 27, 2015
PVH profit, sales beat on demand for Calvin Klein apparel
Aug 27, 2015
PVH Corp reported better-than-expected quarterly profit and sales, helped by higher demand for clothing and accessories under its Calvin Klein brand in North America and Europe.
Shares of the company, which also makes apparel under the Tommy Hilfiger, Van Heusen, Arrow and Speedo brands, rose about 5.5 percent in extended trading on Wednesday.
PVH also raised its full-year adjusted profit guidance and the company forecast current-quarter earnings largely above analysts' estimates.
The company said retail comparable sales rose 4 percent at its Calvin Klein stores in North America in the second quarter, driven by demand for new styles in underwear.
Revenue from the Calvin Klein brand rose 3 percent on a constant currency basis. PVH said it expected revenue in the brand to rise by about 7 percent on a constant currency basis in the third quarter.
PVH raised its adjusted earnings forecast for the year ending February to $6.90-$7.00 per share from $6.85-$6.95. Analysts on average had expected a profit of $6.92 per share, according to Thomson Reuters I/B/E/S.
PVH forecast an adjusted profit of $2.45-$2.50 per share for the current quarter, largely above the average analyst estimate of $2.45.
Net income attributable to PVH fell to $102.2 million, or $1.22 per share, in the quarter ended Aug. 2 from $126.5 million, or $1.52 per share, a year earlier.
Excluding items, the company earned $1.37 per share.
Total revenue declined 5.6 percent to $1.86 billion.
Analysts on average had expected a profit of $1.29 per share and revenue of $1.82 billion, according to Thomson Reuters I/B/E/S.
PVH shares were trading at $117.43 after the bell. Up to Wednesday's close, the stock had fallen 13 percent this year.
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