PVH Corp. on Wednesday topped Wall Street’s second-quarter revenue expectations and raised its full-year earnings guidance, as strong demand for its Calvin Klein and Tommy Hilfiger brands helped offset inflationary pressures..
The owner of Calvin Klein, Tommy Hilfiger, Van Heusen, Speedo and Warner’s reported net income of $250.1 million, or $1.95 per share, for the three months ended July 2, compared with $192.4 million, or $1.47 per share, a year earlier..
Adjusted for one-time items, the company earned $2.02 per share, beating analysts’ average estimate of $1.84, according to Refinitiv data..
Net sales climbed 12% to $2.61 billion, above the $2.55 billion analysts had forecast..
PVH’s shares rose more than 4% in premarket trading..
For the full year, PVH now expects adjusted earnings per share of $9.80 to $10.20, up from its prior forecast of $9.70 to $10.10..
Analysts on average were expecting $9.94 per share, according to Refinitiv data..
“Our second-quarter results reflect strong execution across our global businesses and a continued elevation of our iconic brands,” said PVH Chairman and CEO Stefan Larsson..
“Our broad geographic diversification and portfolio of brands, combined with our proven ability to navigate macroeconomic challenges, position us well to continue to deliver profitable growth and drive long-term shareholder value,” he added..
By brand, Calvin Klein’s net sales increased 11% to $979 million, while Tommy Hilfiger’s net sales rose 15% to $1.09 billion..
The company’s Heritage Brands segment, which includes Van Heusen, Speedo and Warner’s, saw net sales increase 8% to $534 million..
PVH’s international business delivered strong growth, with net sales increasing 14% to $1.53 billion. The Americas region saw net sales rise 10% to $1.08 billion..
The company said it is seeing continued strength in its digital business, with e-commerce sales increasing 8% to $570 million..
However, PVH also noted that it is facing inflationary pressures, particularly in raw materials, labor and transportation. The company said it is taking steps to mitigate these pressures, including raising prices and improving efficiency..
“While we are mindful of the current macroeconomic headwinds, we are confident in our ability to navigate these challenges and emerge stronger,” said Larsson..
“Our iconic brands, global reach and proven track record of innovation will continue to be key drivers of our future growth,” he added..
