Apparel giant PVH Corp has booked solid first quarter growth, exceeding internal expectations with a nine per cent increase in comparable sales from both its flagship Calvin Klein and Tommy Hilfiger brands.
The US-based retailer shot past its guidance for the three months ended 7 May, posting a 154 per cent increase in earnings (on the pcp) to US$179.4 million, or $2.29 per share.
Shares shot up 2.8 per cent to US$160 in the hours following the disclosure, with chief executive and chairman Emanuel Chirico saying the results exceeded his expectations.
“We experienced broad-based strength across our businesses globally and our performance underscored the power of our diversified business model and the continued momentum in our global designer lifestyle brands Calvin Klein and Tommy Hilfiger,” he said.
Total revenue was $US$2.3 billion, an increase of 10 per cent on a constant currency basis, as ongoing strength in its flagship businesses offset more sluggish growth in heritage brands like Van Heusen.
Calvin Klein posted US$109 million in earnings, up 17 per cent on the pcp on an 18 per cent increase in revenue to US$890 million.
Tommy Hilfiger’s earnings, adjusted for one-offs, increased by 37 per cent to US$139 million on a $21 per cent increase in sales to US$1 billion.
Heritage brands, which include Van Heusen, booked comparable sales growth of one per cent and earnings of $42 million, up 31 per cent.
Bouyed by its first quarter, PVH lifted its guidance on Thursday, saying that 2018 revenue is now expected to increase by around six per cent, while Calvin Klein will grow by around eight per cent and Tommy Hilfiger by seven per cent.
Earnings per share are expected to be in the US$8.81 to $8.91 range – up from $6.84 in 2017.
PVH Corp maintains a joint venture in Australia with listed wholesaler Gazal Corp that maintains the local license for Calvin Klein, Tommy Hilfiger and Van Heusen.
Recently the venture, called PVH Australia, unveiled a sizable expansion plan that will see it increase its dedicated store network in Australia and New Zealand over the coming years.
Access exclusive analysis, locked news and reports with Inside Retail Weekly. Subscribe today and get our premium print publication delivered to your door every week.