PVH Corp., the maker of Calvin Klein and Tommy Hilfiger apparel, jumped in late trading after raising its full-year profit forecast and reporting first-quarter earnings that beat analysts’ estimates.
NEW YORK, United States — PVH Corp., the maker of Calvin Klein and Tommy Hilfiger apparel, jumped in late trading after raising its full-year profit forecast and reporting first-quarter earnings that beat analysts’ estimates.
Adjusted earnings will probably be $6.45 to $6.55 a share during the 2016 fiscal year, the New York-based company said in a statement Wednesday. That is up from the previous forecast of $6.30 to $6.50 a share in March, the New York-based company said in a statement Wednesday.
The apparel company said its first-quarter earnings were $1.50 per share, including the effects of currency-exchange rates. That is above its own forecast as well as the $1.43 average estimate of analysts surveyed by Bloomberg. The shares rose as high as 9.9 percent in late trading in New York.
PVH bucked the sluggish sales trend that’s hurt apparel sellers like Nordstrom Inc. and Macy’s Inc., which have suffered from slower traffic at many malls. The strong US dollar also hurt clothing companies by reducing the value of sales overseas.
PVH will continue to “take a prudent approach to planning our business, as foreign currency and global consumer spending remain unpredictable and the US retail market is increasingly volatile and promotional,” chief executive officer Emanuel Chirico said in the statement.
Of the two brands, Calvin Klein was the better performer. Revenue of the Calvin Klein business rose 13 percent on a constant-currency basis. The results were driven by a strong performance in the North American wholesale operation, particularly underwear.
Tommy Hilfiger revenue increased 4 percent on a constant-currency basis, with a 5 percent drop in North America offset by a 11 percent rise in international sales. The gain was boosted by the company’s acquisition of the 55 percent interest in its China joint venture that it did not already own.
By Stephanie Wong; editors: Nick Turner and Mark Schoifet.