UPDATE: PVH Corp. (PVH) Tops Q1 EPS by 12c; Boosts FY15 EPS Outlook

PVH Corp. (NYSE: PVH) reported Q1 EPS of $1.50, $0.12 better than the analyst estimate of $1.38. Revenue for the quarter came in at $1.79 billion versus the consensus estimate of $1.86 billion.

The Company’s Board of Directors has authorized a $500 million three-year stock repurchase program. Stock repurchases under this program may be made from time to time over the period through open market purchases, accelerated share repurchase programs, privately negotiated transactions or other methods, as the Company deems appropriate. Purchases would be made based on a variety of factors, such as price, corporate requirements and overall market conditions, applicable legal requirements and limitations, restrictions under the Company’s debt arrangements, trading restrictions under the Company’s insider trading policy, and other relevant factors. The stock repurchase program may be modified, including to increase or decrease the repurchase limitation or extend, suspend, or terminate the program, by the Company at any time, without prior notice, including without making any repurchases.

Commenting on these results, Emanuel Chirico, Chairman and Chief Executive Officer, noted, “We are very pleased with our first quarter results, which exceeded our first quarter guidance, driven by the strength of our Calvin Klein business. Strong underlying fundamentals in our international Calvin Klein and Tommy Hilfiger businesses was partially offset by softness in our U.S. Calvin Klein and Tommy Hilfiger businesses, where a strong U.S. dollar negatively impacted international tourist spending.”

Mr. Chirico continued, “Looking ahead to the remainder of 2015, we are increasing our earnings guidance for the year, while continuing to take a prudent approach to planning our business, as foreign currency and global consumer spending remain unpredictable and volatile. We believe that our proven business model is well-positioned to navigate through this environment and we are implementing local initiatives to drive traffic and sales, while carefully managing our inventories and looking for continued efficiencies across our business.”

Mr. Chirico also noted, “We are pleased to announce the approval of a $500 million stock repurchase program, which reflects the Board and management’s confidence in our ability to generate strong free cash flow and achieve our long-term growth objectives. This program underscores our commitment to returning capital to stockholders. We also believe we will continue to have the financial flexibility, as we continue to pay down debt, to strategically invest in our business, to take more direct ownership in certain licensed Calvin Klein and Tommy Hilfiger businesses and for other strategic acquisitions as they arise in the future. We remain committed to maximizing the potential of our businesses and believe the strength of our brands, together with the strategic investments we have made in our businesses, will position us to deliver long-term global growth and stockholder value.”

PVH Corp. sees FY2015 EPS of $6.85 - $6.95, versus the consensus of $6.86.

PVH sees Q2 EPS of $1.25 - $1.30, with the Street at $1.43.

For earnings history and earnings-related data on PVH Corp. (PVH) click here.

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