US-based fashion company PVH Corporation has reported a rise in revenue and sales for the second quarter of 2017 fiscal. Solid performance by Calvin Klein, Tommy Hilfiger and Heritage Brands helped the company deliver positive results.
PVH’s sales remained green for the fourth consecutive quarter, while earnings clocked a 13th straight positive quarter.
The company marked an overall rise of 7 per cent on the yearly note to fetch US $ 2.1 billion revenue in the second quarter.
During the reporting period, PVH’s Earnings per Share (EPS) was US $ 1.52 (up 36.9 per cent) on a GAAP basis versus US $ 1.11 in the corresponding quarter last year. On a non-GAAP basis, EPS was US $ 1.69 in the second quarter compared to US $ 1.47 in the prior-year period.
The company further reported that its adjusted gross profit jumped 10.5 per cent year-on-year to settle at US $ 1,147.3 million. Its gross margin soared 170 basis points (bps), up 55.4 per cent from last year.
Adjusted EBIT also increased by 9.3 per cent to US $ 199.7 million, powered by improved Tommy Hilfiger and Heritage Brands’ earnings. However, earnings decline in Calvin Klein due to higher investments and marketing expenditure, as well as increased corporate expenses, affected the Adjusted EBIT.
Calvin Klein and Tommy Hilfiger noted a surge of 8 per cent to US $ 786 million and 4 per cent to US $ 892 million (earnings), respectively. Meanwhile, Heritage Brands grew by commendable 13 per cent to US $ 392 million during the quarter.
PVH Corp. said that the surge in Tommy Hilfiger’s sales was mainly backed up by the brand’s persistent strength in Europe and Asia which saw a 9 per cent sales growth.
The company informed that Calvin Klein witnessed growth owing to the solid performance of the wholesale business in Europe and China, alongside robust growth in the retail business due to 6 per cent comparable store sales increase and square-footage expansion.
PVH has now raised its full year outlook. The company was earlier expecting a 3 per cent rise in its GAAP revenue, but now it predicts a 6 per cent increase based on its second quarter performance.
Emanuel Chirico, Chairman and CEO, PVH Corp., commented, “In addition, in line with our projected full year sales increase, we are now planning to invest US $ 10 million more in marketing during the second half of this year to capitalise on the continued momentum we are seeing in our Tommy Hilfiger and Calvin Klein businesses.”
