PVH Q1 Results Tops Wall Street Estimates

(RTTNews) - Apparel company PVH Corp. (PVH), on Wednesday posted a better-than expected results for the first quarter, as sales of its Calvin Klein and Tommy Hilfiger brands continue to increase. The company lifted its full-year earnings outlook, but lowered its revenue guidance.

PVH's first-quarter profit rose to $179.4 million or $2.29 per share from $70.4 million or $0.89 per share last year.

Adjusted earnings for the quarter rose to $2.36 per share from $1.65 per share last year. On average, 17 analysts polled by Thomson Reuters estimated earnings of $2.25 per share. Analysts' estimates typically exclude one-time items.

Revenues for the quarter grew 16 percent to $2.31 billion from $1.99 billion last year. Analysts had a consensus revenue estimate of $2.28 billion for the quarter.

Commenting on the results, CEO Emanuel Chirico said, "We are very pleased with our first quarter 2018 results, which exceeded our expectations. We experienced broad-based strength across our businesses globally and our performance underscored the power of our diversified business model and the continued momentum in our global designer lifestyle brands, Calvin Klein and Tommy Hilfiger."

Revenue in the Calvin Klein business increased 18 percent to $890 million, with international revenues up 25 percent and North America up 10 percent. Tommy Hilfiger business revenues rose 21 percent to $1.0 billion with international revenues up 25 percent and North American up 13 percent.

Looking forward to the second quarter, PVH expects adjusted earnings of $2.05 to $2.10 per share and revenues to increase around 10 percent.

For the full year 2018, PVH now expects adjusted earnings of $9.05 to $9.15 per share and revenues to increase about 6 percent. Analysts currently estimate earnings of $2.02 per share and revenues to grow 7.40%.

Earlier, the company expected full-year 2018 adjusted earnings of $9.00 to $9.10 per share and revenues to increase about 7 percent. Analysts currently estimate earnings of $9.13 per share and revenues to grow 7.30%.

Chirico concluded, "We are pleased to increase our earnings guidance for the year, despite the continuing volatility in the macroeconomic and geopolitical environments, which is resulting in a significantly lower foreign currency benefit than previously planned for the year.

PVH closed Wednesday's trading at $155.50, up $0.39 or 0.25% on the NYSE. The stock, however, slipped $1.50 or 0.96% in the after-hours trade.