PVH Corp. (PVH) Misses Q1 EPS by 2c; Cuts FY14 EPS View

PVH Corp. (NYSE: PVH) reported Q1 EPS of $1.47, $0.02 worse than the analyst estimate of $1.49. Revenue for the quarter came in at $1.96 billion versus the consensus estimate of $1.98 billion.

Commenting on these results, Emanuel Chirico, Chairman and Chief Executive Officer, noted, “We are pleased with our first quarter results, which were in line with our expectations, despite the unseasonably cool weather in North America and the volatility experienced in the global retail environment in the first quarter. Unfortunately, the challenging macroeconomic environment has continued into the second quarter, with heightened promotional activity across the North American retail landscape. As such, we believe our North American businesses will experience margin pressure in the second quarter and we have lowered our full year earnings per share guidance to reflect this. We will continue to make the previously planned strategic investments, particularly in the acquired Calvin Klein businesses, in order to unlock the full global potential of the Calvin Klein businesses over the long-term.”

Mr. Chirico concluded, “I am pleased that the Warnaco integration is progressing well and we have achieved numerous milestones to date. 2014 continues to represent a year of two stories - the first half is pressured by our strategic investments, while Fall 2014 will be the first season we offer product by our newly established design and sourcing teams and presented in an enhanced retail environment. Despite first half pressures, we are well-positioned and have not changed our outlook for the second half of the year, for which we expect earnings per share to increase approximately 20% on a non-GAAP basis over last year’s second half. The power of our brands, led by Calvin Klein and Tommy Hilfiger, remains strong, and we believe that the investments we make during 2014 and the financial flexibility achieved by our continued debt repayment will enable us to capitalize on growth opportunities over the long-term.”

PVH Corp. sees FY2014 EPS of $7.30-$7.40, versus prior guidance of $7.4-$7.5 and the consensus of $7.51.

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

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