PVH Results Top Estimates

(RTTNews) - Apparel maker PVH Corp. (PVH) said Monday after the markets closed that its first quarter profit rose sharply from last year, when results were weighed down by debt modification and extinguishment costs.

The company's quarterly earnings per share, excluding items, also came in above analysts' expectations as did its quarterly revenue. At the same time, the company forecast second quarter earnings below analysts' current consensus estimate, but raised its full year earnings outlook.

Emanuel Chirico, PVH Chairman and Chief Executive Officer, said, "We are very pleased with our first quarter results, which exceeded our first quarter guidance, driven by the strength of our Calvin Klein business. Strong underlying fundamentals in our international Calvin Klein and Tommy Hilfiger businesses was partially offset by softness in our U.S. Calvin Klein and Tommy Hilfiger businesses, where a strong U.S. dollar negatively impacted international tourist spending."

The company also said its board of directors has authorized a $500 million three-year stock repurchase program.

PVH shares are currently gaining 3.17% in after hours trading after closing the day's regular trading session at $104.68, up 4 cents. The shares trade in a 52-week range of $93.80 to $132.34.

First quarter revenue from the company's Tommy Hilfiger business fell 11% year-over-year to $767.1 million, with Tommy Hilfiger North America revenue down 2% and Tommy Hilfiger International revenue down 17%.

Revenue for the company's Calvin Klein business fell 2% to $653.9 million in the first quarter, while total revenue for the Heritage Brands business increased 5% to $458.3 million.

For the first quarter ended May 3, 2015, the New York-based company, which was formerly known as Phillips-Van Heusen Corp. and changed its name to PVH Corp. in June 2011, reported net income of $114.1 million or $1.37 per share, compared to $35.3 million or $0.42 per share for the year-ago quarter.

Excluding items, adjusted net income for the first quarter was $124.7 million or $1.50 per share, compared to $122.1 million or $1.47 per share in the prior year quarter.

On average, 18 analysts polled by Thomson Reuters expected the company to earn $1.38 per share for the first quarter. Analysts' estimates typically exclude special items.

Total revenue for the first quarter fell 4% to $1.88 billion from $1.96 billion in the same quarter last year. Thirteen analysts had a consensus revenue estimate of $1.86 billion for the first quarter.

Looking forward to the second quarter, the company forecasts revenue decline of about 8% and adjusted earnings of $1.25 to $1.30 per share. Analysts currently expect the company to earn $1.43 per share on revenue decline of 4.6% for the second quarter.

For the full year, the company now forecasts revenue decline of about 3% and adjusted earnings of $6.85 to $6.95 per share. Previously, the company forecast revenue decline of about 4% and adjusted earnings of $6.75 to $6.90 per share.

Analysts currently expect the company to earn $6.86 per share on revenue decline of 3.7% for the fiscal year 2015.