PVH (PVH 136.64, -0.50) is lower by 0.4% in response to better than expected results and below-consensus guidance for the fourth quarter.
The apparel conglomerate reported above-consensus third quarter earnings of $3.02 per share on a 5.0% year-over-year increase in revenue to $2.36 billion, which was just ahead of expectations.
Gross margin improved to 55.0% from 53.1% one year ago.
Looking at the segment breakdown, Calvin Klein revenue grew 6.0% to $943 million even though this quarter's revenue was reduced by $20 million year-over-year due to last year's deconsolidation of the company's business in Mexico. Calvin Klein international revenue grew 20.0% to $467 million, largely thanks to strong performance in the European wholesale business and strong international retail results. International comparable store sales grew 9.0%. Calvin Klein North America revenue fell 5.0% to $476 million, largely due to the Mexico deconsolidation and a 1.0% drop in comparable store sales.
Tommy Hilfiger revenue grew 10.0% to $1.00 billion. International revenue paced the increase, growing 16.0% to $609 million, thanks to strength in Europe and Asia. International comparable store sales grew 7.0%. Tommy Hilfiger North America revenue grew 2.0% to $410 million thanks to 6.0% growth in comparable store sales.
Heritage Brands revenue declined 7.0% to $396 million, largely due to a planned shift of wholesale shipments from the third quarter to the second quarter. Comparable store sales grew 2.0%.
Looking ahead, PVH expects that fourth quarter earnings will be between $1.42 and $1.44 per share, which is shy of market expectations. Fourth quarter revenue is expected to hit $2.34 billion, which is ahead of market expectations.