PVH Corp. (PVH) Tops Q3 EPS by 7c, Revenues Miss; Raises FY18 EPS Guidance
PVH Corp. (NYSE: PVH) reported Q3 EPS of $3.21, $0.07 better than the analyst estimate of $3.14. Revenue for the quarter came in at $2.52 billion versus the consensus estimate of $2.53 billion.
- A 15% increase (12% increase on a constant currency basis) in the Tommy Hilfiger business compared to the prior year period, driven principally by continued strong performance across all regions and channels. International comparable store sales increased 11%. North America comparable store sales increased 4%.
- A 12% increase (10% increase on a constant currency basis) in the Calvin Klein business compared to the prior year period, driven by strong performance in Europe and Asia, as well as in the North America wholesale business. International comparable store sales increased 5%. North America comparable store sales increased 2%.
- A 3% increase in the Heritage Brands business compared to the prior year period. Comparable store sales increased 1%.
CEO Comments:
Commenting on these results, Emanuel Chirico, Chairman and Chief Executive Officer, noted, “We are pleased with the strong earnings performance in the third quarter, which exceeded our expectations, driven by the power of our diversified global business model. We continue to over-deliver against our 2018 plan and are raising our full year earnings outlook based on our third quarter outperformance and our confidence in the opportunities for the fourth quarter, despite recent retailer bankruptcies in the U.S. and U.K. and increasing geopolitical volatility around the world.”
Mr. Chirico continued, “Our Tommy Hilfiger business truly outperformed, with strength across all regions, product lines and channels of distribution. The brand continues to gain meaningful market share, as our consumer-centric brand approach and consistent brand execution are driving global momentum. The CALVIN KLEIN brand continues to command strong brand health and desire in all markets; however, the business in the third quarter experienced softness. While many of the product categories performed well, we are disappointed by the lack of return on our investments in our Calvin Klein 205 W39 NYC halo business and believe that some of the CALVIN KLEIN JEANS relaunched product was too elevated and did not sell through as well as we planned. As we move into 2019, we believe the consumer will increasingly feel more connected to the brand as we offer a more commercial product and marketing experience to capture the long-term opportunity for our Calvin Klein business.”
Mr. Chirico concluded, “Overall, we remain confident that we are well positioned to execute our strategic priorities through the efforts of our talented associates, enabling us to deliver long-term stockholder value.”
GUIDANCE:
PVH Corp. sees FY2018 EPS of $9.33-$9.35, versus the consensus of $9.33.
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