Parent group to Tommy Hilfiger and Calvin Klein reported year-on-year earnings growth for the second quarter. PVH Corp. said its bottom line totaled 133.1 million dollars, or 1.69 dollars per share. Earnings came in an 11.1 percent higher than in the same quarter last year (119.8 million dollars, or 1.47 dollars per share.)
Commenting on these results, Emanuel Chirico, chairman, and CEO, noted, “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 dollars 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.”
The market had expected the company to earn 1.64 dollars per share, according to data compiled by Thomson Reuters. Analysts polled by FactSet had equally expected adjusted earnings of 1.64 dollars a share on sales of 2.03 billion dollars.
On another note, the company said revenue for the quarter rose 7.3 percent to 2.07 billion dollars, marking an increase from last year’s same quarter’s 1.93 billion dollars.
The company also raised its GAAP earnings guidance to a 6.44 - 6.54 dollars a share, compared to its previous 6.24 dollars a share and 6.34 dollars a share range. Adjusted earnings came in a range of 7.60 a dollars share to 7.70 dollars a share, from 7.40 to 7.50 dollars per share previously.
The company’s CEO explained in a corporate release that “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.”
Looking ahead, the fashion group sees an additional 10 million dollars investment in marketing during the second half: “In line with our projected full year sales increase, we are now planning to invest in marketing to capitalize on the continued momentum we are seeing in our Tommy Hilfiger and Calvin Klein businesses.”
After the corporate release PVH’s stock rose more than 3 percent, closing down 0.2 percent Wednesday.
Image: A/W Collection Tommy Hilfiger