PVH Corp. reported better-than-expected second-quarter sales on Wednesday, driven by strength in its Calvin Klein and Tommy Hilfiger brands, and raised its full-year earnings forecast.
The owner of the Calvin Klein, Tommy Hilfiger, Van Heusen, Speedo, and Izod brands said net sales rose 3% to $2.26 billion in the quarter ended July 2, beating analysts’ average estimate of $2.23 billion, according to Refinitiv data.
Net income attributable to PVH fell to $231.9 million, or $2.26 per share, from $250.0 million, or $2.40 per share, a year earlier. Excluding items, PVH earned $2.50 per share, topping Wall Street estimates of $2.45.
Total sales in PVH’s core North American market rose 5% to $1.03 billion, with strength in its Tommy Hilfiger and Calvin Klein businesses offsetting a decline in its Heritage Brands segment.
International sales were flat at $1.23 billion, as gains in Europe were offset by declines in Asia. Sales in China, PVH’s largest international market, fell 10% due to COVID-19 lockdowns.
PVH said it expects full-year earnings per share of $10.50 to $10.70, up from its previous forecast of $10.00 to $10.20. Analysts had expected $10.27 per share.
The company also announced a $500 million share repurchase program.
PVH shares rose 2.5% to $89.60 in premarket trading.
**Key Points:**
* PVH’s Q2 sales beat estimates, driven by strength in Calvin Klein and Tommy Hilfiger.
* Net income declined slightly due to higher costs.
* The company raised its full-year earnings forecast.
* PVH announced a $500 million share repurchase program.
**Implications:**
PVH’s strong Q2 results and raised earnings outlook suggest that the company is weathering the current economic challenges relatively well. The strength of its core brands and its focus on cost control are key factors in its resilience.
The company’s decision to announce a share repurchase program indicates that it is confident in its future prospects and committed to returning capital to shareholders.
Overall, PVH’s Q2 results and raised outlook are positive signs for the company and its shareholders..
