PVH Corp raised its 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.
Total revenue rose 2.5 percent to $2.59 billion, above-average analysts’ estimate of $2.54 billion. 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 percent to $1.24 billion. Calvin Klein, which is recovering from the fashion missteps it made last year, saw sales rise one percent to $968.9 million.
Net income attributable to the company fell to $209.2 million, or $2.82 per share in the quarter ended November 3, from $243.1 million, or $3.15 per share, a year earlier.
“Looking ahead to the remainder of 2019, we are raising our earnings guidance for the year, while continuing to take a prudent approach to planning our business for the fourth quarter,” said Emanuel Chirico, chairman and chief executive officer of PVH. “We believe the current holiday season will be very competitive and highly promotional and expect that the macroeconomic and geopolitical volatility we are experiencing globally will remain a headwind.”
“We have great confidence in our ability to navigate this evolving consumer landscape and uncertain market environment with the underlying power of Calvin Klein and Tommy Hilfiger and our global diversified business model,” added Chirico. “We believe that we are well-positioned to capture the heart of the consumer by executing our strategic priorities while delivering sustainable long term returns for our stockholders.”