New York-based PVH Corp., the owner of Calvin Klein and Tommy Hilfiger, has reported its first quarter results, with overall revenue and GAAP-based earnings per share both exceeding guidance.
First quarter revenue increased four percent over last year, while earnings on a GAAP basis were $0.89 compared to guidance of $0.73 to $0.75. (On a non-GAAP basis, they were $1.65 compared to guidance of $1.58 to $1.60.)
Revenue in the Calvin Klein business for the quarter increased 5 percent to $756 million, with international revue up 11 percent to $380 million, while North American revenue was down 1 percent to $375 million. Revenue in the Tommy Hilfiger business for the quarter increased 6 percent overall to $842 million compared to the prior year period. Tommy Hilfiger International revenue increased 15 percent to $524 million, while North America revenue decreased 5 percent to $318 million. Revenue in the Heritage Brands business for the quarter decreased 3 percent to $391 million.
Commenting on these results, Emanuel Chirico, chairman and chief executive officer, noted, “We continue to experience strong momentum in our Calvin Klein and Tommy Hilfiger businesses, which allowed us to exceed both our sales and earnings guidance for the first quarter despite the volatile macroeconomic environment and the highly promotional retail market in the U.S. Our first quarter performance underscored the power of our diversified business model and the strength in our international businesses. We believe that our brands continue to resonate with consumers and are gaining market share against our competition. As the global retail environment shifts, we continue to focus on adapting to change, while investing in our brands and operating platforms to capitalize on the opportunities for each of our businesses.”
Looking ahead, for the entire fiscal year, PVH currently projects that 2017 revenue will increase by 3 percent; earnings per share on a GAAP basis will be in a range of $6.24 to $6.34, compared to $6.79 in 2016; and earnings per share on non-GAAP basis will be in a range of $7.40 to $7.50 compared to $6.80 in 2016. These figures are above previously announced guidance.
“We are pleased to increase our earnings guidance for the year despite the volatility that continues to persist in the macroeconomic environment,” said Chirico. “We expect that our best-in-class management teams, together with our proven business model, will continue to drive the execution of our strategic initiatives in an ever-changing environment. We believe the investments we have made and continue to make in our business will deliver long-term sustainable growth and stockholder value.”