PVH Corp. beats its own guidance in Q2
PVH Corp., the American clothing company known for brands like Van Heusen, Tommy Hilfiger, and Calvin Klein, reported second quarter earnings for 2017 that beat its own guidance. The company saw a 7% increase in revenue for the quarter against the same period last year, and a 37% rise in earnings per share (on a GAAP basis) during the same period. That works out as earnings of $1.53 per share against guidance for the quarter in a range of $1.35 to $1.38.
PVH Corp. has seen its share price rise by 38%, year to date
Source: Yahoo Finance
The company’s chairman and CEO, Emanuel Chirico, said in a statement: “Our better than expected second quarter results reflect the continued momentum and ongoing operating efficiencies across our diversified business model. Our results reflect a planned increase of approximately $25 million of marketing compared to the prior year related to CALVIN KLEIN and TOMMY HILFIGER, which we believe will continue to drive market share gains and allow us to capitalize on the brands’ significant international expansion opportunities over the next several years.”
Looking to the future, he added: We have raised our full year earnings outlook based on our second quarter outperformance, an improvement in foreign currency rates and our belief that the strength of our brands will continue to drive our second half performance, despite the ongoing volatility in the macroeconomic and geopolitical environment. In addition, in line with our projected full year sales increase, we are now planning to invest an additional $10 million in marketing during the second half of this year to capitalize on the continued momentum we are seeing in our Tommy Hilfiger and Calvin Klein businesses.
“In today’s ever-changing consumer landscape, we are actively adapting our businesses to gain market share by finding innovative ways to engage consumers, while investing across our organization. We believe that we are well-positioned to execute our strategic priorities, while delivering long-term sustainable growth and stockholder value.”
The company has raised its full year guidance for earnings per share in 2017 to within a range of $6.44 to $6.54, from a previous forecast of $6.24 to $6.34. These figures are reflective of earnings reported on a GAAP basis.
Dominion holds PVH Corp. in its Global Trends Luxury Fund.
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