Revenue for PVH Corporation surges in first quarter

PVH Corporation has noted positive sales growth for its brands such as Calvin Klein and Tommy Hilfiger China during the first quarter.

During the quarter under review, Calvin Klein’s sales globally increased 5 per cent to US $ 756 million while Calvin Klein International revenue increased by 11 per cent to US $ 380 million (increased 13 per cent on a constant currency basis) compared to the prior year period, due principally to continued strength in Europe and China.

Revenue for Tommy Hilfiger in the same quarter increased by 6 per cent to US $ 842 million (increased 9 per cent on a constant currency basis) compared to the prior year period.

Tommy Hilfiger International revenue surged 15 per cent to US $ 524 million (increased 19 per cent on a constant currency basis) compared to the prior year period. This increase was driven by outstanding performance across all channels and markets in Europe, as well as the inclusion of a full quarter of revenue from the China business as a result of the April 2016 acquisition of the 55 per cent interest in the company’s former Tommy Hilfiger joint venture in China (“TH China”) that it did not already own (the “TH China acquisition”).

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Revenue in the Heritage Brands business for the quarter decreased 3 per cent to US $ 391 million compared to the prior year period, principally resulting from a planned shift in the timing of shipments from the first quarter into the second quarter as compared to the prior year period. Comparable store sales were flat.

Commenting on the results, Emanuel Chirico, Chairman and Chief Executive Officer said, “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 US.”