PVH Corp reports better than expected first quarter results
PVH Corp reported quarterly earnings of $114.1 million, or $1.37 per share, compared to $35.3 million, or $0.42 per share, in the year-ago period. Excluding non-recurring items, the company earned $1.50 per share.
Its total revenue slipped to $1.88 billion from 1.96 billion. However, analysts were expecting a profit of $1.38 per share on revenue of $1.86 billion. The average estimate among 13 Estimize users was for earnings of $1.42 per share and revenue of $1.86 billion.
Revenue in the Calvin Klein business rose 5 percent on a constant currency basis for the quarter, while revenue in the Tommy Hilfiger business gained 1 percent on a constant currency basis. Revenue for the Heritage Brands business rose 5 percent.
Earnings before interest and taxes climbed to $177 million, versus $85 million in the year-ago quarter. Net interest expense slipped to $30 million from $41 million.
The company’s board authorized a $500 million three-year stock repurchase program.
Emanuel Chirico, Chairman and Chief Executive Officer, said, “We are very pleased with our first quarter results, which exceeded our first quarter guidance, driven by the strength of our Calvin Klein business. Strong underlying fundamentals in our international Calvin Klein and Tommy Hilfiger businesses was partially offset by softness in our U.S. Calvin Klein and Tommy Hilfiger businesses, where a strong U.S. dollar negatively impacted international tourist spending.”
PVH now expects FY15 earnings of $6.85 to $6.95 per share, versus earlier forecast of $6.75 to $6.90 per share. The company projects revenue to decline 3 percent on a GAAP basis. It projects Q2 adjusted earnings of $1.25 to $1.30 per share and revenue to drop 8 percent on a GAAP basis.