PVH, the company behind classic American fashion brands like Tommy Hilfiger and Calvin Klein, lifted its full-year earnings outlook on Wednesday after posting better than expected revenue gains for the first quarter.
The company said sales in the three months to May 6 rose 16 per cent from a year ago to $2.3bn. Earnings came in at $2.29 a share, versus 89 cents in the same period a year ago, thanks in part to a 20 cent-per-share boost from favourable currency exchange rates. Net income attributable to the company soared to $179.4m from $70.4m a year ago.
Analysts had been looking for revenue of $2.28bn, net income of $170.9m and earnings per share of $2.20, according to Thomson Reuters.
Among its key brands, Calvin Klein revenue rose 18 per cent to $890m from a year-ago, with international sales ringing in 25 per cent higher at $475m. Tommy Hilfiger revenue rose 21 per cent to hit $1bn, alongside a 25 per cent jump in the brand’s sales in foreign markets to $655m.
Emanuel Chirico, PVH chairman and chief executive, said:
“We are very pleased with our first quarter 2018 results, which exceeded our expectations. We experienced broad-based strength across our businesses globally and our performance underscored the power of our diversified business model and the continued momentum in our global designer lifestyle brands, Calvin Klein and Tommy Hilfiger.”
In the wake of the results, PVH said it would lift its full-year earnings outlook, despite expectations that the foreign-exchange tailwinds would subside. Its previous guidance for earnings between $8.76 and $8.86 a share was raised to $8.81 to $8.91 a share.
Demand for PVH’s recognisable brand names has helped it weather tough times in the retail sector, amid changing shopping habits and consumer tastes. After rising 52 per cent last year, their shares are up another 14.12 per cent so far in 2018. They dipped 1 per cent in after-hours trading.
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