CALVIN KLEIN, TOMMY HILFIGER CONTINUE TO DRIVE STRONG SALES AT PVH
Apparel maker PVH Corp. reported a 38 percent rise in second-quarter profit on Wednesday and raised its earnings forecasts for the year, helped by higher sales of its Calvin Klein and Tommy Hilfiger brands.
Revenue in the Calvin Klein business for the quarter increased 18 percent to $925 million compared to the prior year period. Calvin Klein International revenue increased 16 percent to $458 million compared to the prior year period, driven by strong performance in Europe and Asia, including a 5 percent increase in comparable store sales. Calvin Klein North America revenue increased 19 percent to $467 million compared to the prior year period primarily as a result of strong wholesale performance and a 2 percent increase in comparable store sales.
Revenue in the Tommy Hilfiger business for the quarter increased 15 percent to $1.0 billion compared to the prior year period. Tommy Hilfiger International revenue increased 20 percent to $592 million compared to the prior year period, driven by continued strong performance across all regions and channels, including an 11 percent increase in comparable store sales. Tommy Hilfiger North America revenue increased 9 percent to $437 million compared to the prior year period, principally attributable to continued strong performance in the wholesale business and a 5 percent increase in comparable store sales.
Revenue in the Heritage Brands business for the quarter decreased 3 percent to $380 million compared to the prior year period. Comparable store sales increased 3 percent. Earnings before interest and taxes for the quarter decreased to $33 million from $35 million in the prior year period, driven by the decrease in revenue noted above.
“Our better than expected second quarter revenue and earnings reflected continued broad-based strength across our businesses and further underscored the momentum in our global designer lifestyle brands, Calvin Klein and Tommy Hilfiger, and the power of our diversified business model,” said Emanuel Chirico, chairman and chief executive officer. “We are increasingly evolving our business model and investing across our brands, our people and our platforms, while finding innovative ways to engage consumers. We have made great progress in enhancing our consumer insights capabilities, increasing our efforts around online and offline consumer experiences, and driving engagement with the next generation of consumers. As we execute on our strategic priorities, we believe that we can continue to grow our global footprint, while delivering a sustainable trajectory of long-term growth and stockholder value creation.”
