PVH (PVH) ramped up its full-year guidance after markets closed on Monday as the apparel company posted results for its third quarter which surpassed both its and analysts’ forecasts, buoyed by double-digit sales growth in its Tommy Hilfiger apparel segment.
The New York-based company, whose brands also include Calvin Klein, reported revenue of $2.59 billion in the three months ended Nov 3, up from $2.52 billion in the corresponding quarter of the prior year and ahead of the consensus estimate of analysts polled by Capital IQ for $2.54 billion.
Revenue in the Tommy Hilfiger business increased 10% to $1.2 billion while revenue in the Calvin Klein business jumped 1% to $969 million. Revenue in PVH’s Heritage Brands business decreased by 13% to $375 million compared to the prior-year period. The company said that this was primarily due to weakness in the North America wholesale business and a 2% decline in comparable-store sales.
Adjusted earnings per share came in at $3.10 during the period, down from $3.21 a year earlier but ahead of the company’s guidance of $2.95 to $3.00. The result was also ahead of the $2.99 consensus estimate of analysts.
“We are pleased with our third-quarter results, which exceeded our expectations despite the difficult market environment,” Emanuel Chirico, chief executive of PVH, said. “During the quarter, we experienced continued outperformance by our European businesses while experiencing volatility in our businesses in North America and across China, including the impact of the ongoing protests in Hong Kong.”
For the full year, the company raised its adjusted earnings per share guidance to $9.43 to $9.45 from its earlier guidance of $9.30 to $9.40. Analysts polled by Capital IQ are expecting $9.41. Revenue in 2019 is projected to increase approximately 1% year-on-year.
PVH said that it is targeting fourth-quarter adjusted earnings per share in the range of $1.77 to $1.79 compared to $1.84 in the prior-year period. Analysts had projected adjusted earnings per share of $1.84. Revenue in the fourth quarter of 2019 is projected to be flat.