Calvin Klein-owner PVH Corp raises FY profit outlook on strong demand in Europe

Business

(Reuters) – PVH Corp (PVH.N) raised full-year adjusted profit forecast on Monday after its third-quarter results beat Wall Street expectations, powered by higher demand for its Calvin Klein and Tommy Hilfiger apparel in Europe.

FILE PHOTO: Logo of Calvin Klein watches is seen at the Baselworld watch and jewellery fair in Basel, Switzerland, March 26, 2018. REUTERS/Arnd Wiegmann

The New York-based company has been trying to attract millennial shoppers by sponsoring social media influencers including 23-year-old model Bella Hadid, singer Billie Eilish and British F1 racer Lewis Hamilton to promote its brands.

Total revenue rose 2.5% to $2.59 billion, above average analysts’ estimate of $2.54 billion, according to IBES data from Refinitiv.

The company now expects to earn between $9.43 and $9.45 per share for full year 2019 on an adjusted basis, compared with its prior range of $9.30 to $9.40.

Sales at Tommy Hilfiger, its biggest revenue generator, jumped about 10% to $1.24 billion.

Calvin Klein, which is recovering from the fashion missteps it made last year, saw sales rise marginally to $968.9 million.

Excluding items, the company earned $3.10 per share, beating average analysts’ estimate of $3 per share.

Net income attributable to the company fell to $209.2 million, or $2.82 per share in the quarter ended Nov 3, from $243.1 million, or $3.15 per share, a year earlier.

Shares of the New York-based company were slightly up at $101 in aftermarket trading.

(This story adds dropped word demand in headline)

Reporting by Praveen Paramasivam in Bengaluru; Editing by Vinay Dwivedi

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