PVH (PVH 159.13, +3.63, +2.33%) is higher by 2.3% after beating
quarterly expectations and boosting guidance.
The apparel conglomerate reported above-consensus first quarter earnings of $2.36/share on a 16.4% year/year increase in revenue to $2.31 bln, which was also higher than expected.
In addition to beating estimates, PVH issued above-consensus guidance for the second quarter and boosted full-year guidance. Second quarter earnings are expected to be between $2.05 and $2.10/share while revenue is expected to hit $2.28 bln. For the full year, PVH expects earnings between $9.05/share and $9.15/share, up from previous guidance for earnings between $9.00 and $9.10/share. Revenue is expected to hit $9.45 bln.
Returning to first quarter results, PVH saw solid revenue growth across its three segments. Calvin Klein revenue grew 18% year/year to $890 mln, bolstered by strong international sales growth (+25%). International revenue increased to $475 mln with some help from positive currency translations. Europe and Asia were cited as international standouts; international comparable store sales grew 9%. Calvin Klein North America revenue increased 10% to $415 mln thanks to strong wholesale performance all around and 5% growth in comparable store sales.
Tommy Hilfiger revenue jumped 21% to $1.0 bln. As with Calvin Klein, the segment's revenue growth was driven by international sales, which increased 25% to $655 mln. Comparable store sales grew 9%. Tommy Hilfiger North America revenue grew 13% to $361 mln.
Heritage Brands revenue grew 5% to $409 mln, mostly due to a shift in the timing of shipments. Comparable store sales grew 1%.
The company's long-term debt was reported at $3.01 bln, down 4.6% from $3.16 bln one year ago.
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