PVH Results Top Estimates; Boosts Outlook

(RTTNews) - Apparel maker PVH Corp. (PVH) said Wednesday after the markets closed that its second quarter profit fell 19% from last year, hurt mainly by a stronger U.S. dollar.

However, the company's quarterly earnings per share, excluding items, came in above analysts' expectations as did its quarterly revenue. As a result, the company once again raised its full year outlook.

Emanuel Chirico, PVH Chairman and Chief Executive Officer, said, "We are very pleased with our second quarter results, which exceeded our top and bottom line guidance. Our second quarter performance highlighted continued strength in our Calvin Klein business, as consumers responded well to our recent product initiatives, particularly in underwear."

PVH shares are currently gaining 4.76% in after hours trading after closing the day's regular trading session at $111.44, up $2.22 or 2.03%. The shares trade in a 52-week range of $93.80 to $130.00.

Second quarter revenue from the company's Tommy Hilfiger business fell 7% year-over-year to $810.7 million, with Tommy Hilfiger North America revenue up 1% and Tommy Hilfiger International revenue down 13%.

Revenue for the company's Calvin Klein business declined 4% to $648.6 million in the second quarter, while total revenue for the Heritage Brands business declined 6% to $404.7 million.

For the second quarter ended August 2, 2015, the New York-based company, which was formerly known as Phillips-Van Heusen Corp. and changed its name to PVH Corp. in June 2011, reported net income of $102.2 million or $1.22 per share, compared to $126.5 million or $1.52 per share for the year-ago quarter.

Excluding the impact of currency fluctuations and other items, adjusted net income for the second quarter was $114.7 million or $1.37 per share, compared to $125.5 million or $1.51 per share in the prior year quarter.

On average, 16 analysts polled by Thomson Reuters expected the company to earn $1.29 per share for the second quarter. Analysts' estimates typically exclude special items.

Total revenue for the second quarter fell 6% to $1.86 billion from $1.98 billion in the same quarter last year. Twelve analysts had a consensus revenue estimate of $1.82 billion for the second quarter.

Looking forward to the third quarter, the company forecasts revenue decline of about 3% and adjusted earnings of $2.45 to $2.50 per share. Analysts currently expect the company to earn $2.46 per share on revenue decline of 1.80% for the third quarter.

For the full year, the company now forecasts revenue decline of about 2% and adjusted earnings of $6.90 to $7.00 per share. Previously, the company forecast revenue decline of about 3% and adjusted earnings of $6.85 to $6.95 per share.

Analysts currently expect the company to earn $6.92 per share on revenue decline of 3.2% for the fiscal year 2015.