PVH post Q2 revenue growth, raises EPS outlook

Second quarter revenue at PVH increased 4 percent or 2 percent in a constant currency basis to 2.207 billion dollars versus its guidance for an increase of low single-digits.

Commenting on the trading update and outlook, Stefan Larsson, chief executive officer of PVH said in a statement: “We delivered another strong quarter across both Calvin Klein and Tommy Hilfiger driven by the disciplined execution of our long-term, brand-building growth plan, the PVH+ Plan.”

PVH raises earnings outlook

PVH reaffirms its projected increase in revenue of 3 percent to 4 percent or increase of 2 percent to 3 percent on a constant currency basis for the full year.

The company has lowered guidance for GAAP EPS to approximately 9.60 dollars compared to approximately 10 dollars previously.

However, projected non-GAAP EPS is now expected to increase to approximately 10.35 dollars compared to approximately 10 dollars previously.

“We are increasing our EPS outlook for the year, excluding restructuring charges, based on the confidence we have in our ability to execute in the back half of the year, while continuing to successfully navigate the macroeconomic environment,” Larsson added.

For its third quarter, revenue is projected to increase mid-single digits as or to increase low-single digits on a constant currency basis.

EPS on a GAAP basis is projected to be approximately 2.43 dollars compared to loss of 2.88 dollars in the prior year period. EPS on a non-GAAP basis, which excludes restructuring charges, is projected to be approximately 2.70 dollars.

PVH reports revenue growth across core brands

The company said, Tommy Hilfiger revenue increased 6 percent or 3 percent on a constant currency basis. Tommy Hilfiger International revenue increased 6 percent or 3 percent on a constant currency basis and North America revenue increased 4 percent.

Calvin Klein revenue increased 3 percent or 2 percent on a constant currency basis. Calvin Klein international revenue increased 11 percent or 9 percent on a constant currency basis, while North America revenue decreased 9 percent primarily driven by a decrease in the wholesale business.

Heritage Brands revenue decreased 11 percent compared to the prior year period.

Second quarter EPS on GAAP basis was 1.50 dollars compared to guidance of approximately 1.70 dollars, while non-GAAP EPS of 1.98 dollars exceeded guidance of approximately 1.70 dollars.

EBIT on a GAAP basis was 143 million dollars, while EBIT on a non-GAAP basis was 182 million dollars.