New York–A robust performance from Tommy Hilfiger helped PVH Corp post a second quarter profit, with revenues nearly breaking the $2 billion barrier.
The company’s two leading brands both recorded revenue growth, with Tommy Hilfiger up 9% to $870 million and Calvin Klein up 1% to $675 million, but PVH’s Heritage Brands were flat with revenues of $431 million.
Tommy Hilfiger’s performance was boosted by strong wholesale growth in North America, as well as retail comps growth of 2% in the three months to August 3.
PVH reported earnings for the quarter ended Aug. 3 of $159 million, or $1.52 a share, an increase from $86 million, or $1.39 a share a year earlier. Excluding items, earnings rose $1.51 a share from $1.39.
Revenue rose 4% to $1.98 billion, excluding $62 million of revenue related to the Bass business sold during the fourth quarter of 2013.
Gross margin widened to 53.4% from 52.2% in the latest period, despite volatility in some international markets.
Chairman/CEO Emanuel Chirico pointed out that the group had exceeded its second quarter guidance and said: “Despite the anticipated difficult macroeconomic environment, we successfully navigated through heightened promotional activity in North America and volatility in certain key international markets.
“We believe the global macroeconomic environment will remain under pressure, yet we are cautiously optimistic about the second half of the year.”
For the full year, PVH lowered its revenue outlook to $8.4 billion from $8.5 billion, while reaffirming its per-share profit view.
Meanwhile, for the current quarter, PVH said it expects per-share adjusted earnings of $2.45 to $2.50 and revenue of about $2.25 billion. Analysts had expected earnings of $2.48 a share and revenue of $2.33 billion.