PVH Q3 Profit Down, But Tops View

(RTTNews) - Apparel company PVH Corp (PVH) Wednesday reported a drop in profit for the third quarter, hurt largely by lower revenues. Nevertheless, quarterly earnings trumped Wall Street estimates, while revenues came in line with expectations.

New York-based PVH's third-quarter profit dropped to $221.9 million or $2.67 per share from $225.7 million or $2.71 per share last year.

Adjusted earnings for the quarter were $2.66 per share, up from $2.56 per share last year. On average, 18 analysts polled by Thomson Reuters estimated earnings of $2.47 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter slipped to $2.16 billion from $2.23 billion last year. Analysts had a consensus revenues of $2.16 billion for the quarter.

Selling, general and administrative expenses for the quarter dropped to $853.8 million from $892.9 million last year.

Among brands, sales were flat at Calvin Klein, while Tommy Hilfiger dropped 5 percent and Heritage Brands fell 5 percent.

Commenting on the results, CEO Emanuel Chirico said, "We are very pleased with our third quarter results, which exceeded our expectations despite the difficult and volatile market environment, including the slowdown in traffic experienced in the U.S. during the quarter. Our results continued to highlight the strength of our Calvin Klein and Tommy Hilfiger International businesses and improving trends in our Heritage Brands business."

Looking forward to the full year, the company continues to project adjusted earnings of $6.90 to $7.00 per share. Analysts currently estimate earnings of $6.96 per share for the year.

For the fourth quarter, adjusted earnings is expected to be in a range of $1.37 to $1.47 per share. Analysts currently estimate earnings of $1.60 per share.

PVH closed Wednesday's trading at $93.38, up $1.16 or 1.26%, on the NYSE. The stock further gained $3.63 or 3.89% in the after-hours trade.