PVH raises 2018 outlook after gains skyrocket in first quarter boosted by Tommy Hilfiger
The US retailer, also owner of Calvin Klein, posted a net income of 179.4 million dollars (154,5 million euros) in the first three months of fiscal year. PVH’s turnover reached 2,314.6 million dollars.
PVH started the fiscal year on a good note. The NY-based company, owner of the Tommy Hilfiger and Calvin Klein brands, ended the first quarter (closed on May 6) with a net income that was 2.5 times higher than in the same period last year. Revenues increased 16.4%, boosted by the good performance of the company’s flagship brands in international markets. Tommy Hilfiger exceeded the one billion dollar mark in the first quarter.
The group recorded a net income of 176.4 million dollars (154.5 million euros) between February and April, compared to 70.4 million dollars (60.6 million euros) in the previous year. On the other hand, earnings before interests and taxes (ebit) doubled, to 244.3 million dollars (210.4 million euros).
By brands, Tommy Hilfiger’s ebit multiplied by four in the first quarter, up to 132 million dollars (113.7 million euros), while in the case of Calvin Klein, the increase was 16%, to 108.6 million of dollars (93.5 million euros).
Tommy Hilfiger’s ebit multiplied by four between February and April to 132 million dollars
The heritage brands division, which includes all other PVH labels (Van Heusen, Izod, Arrow, Speedo, Warner’s Olga and True&Co), recorded an ebit of 41.8 million dollars (36 million euros), 30.8% more than in the first quarter of 2017.
PVH’s turnover reached 2,314.6 million dollars (1,933.8 million euros). Tommy Hilfiger led growth, with sales up 20.6% to 1,015.8 million dollars (875 million euros), while Calvin Klein increased them by 17.8% to 890 million dollars (766.6 million euros).
International sales at both Tommy Hilfiger and Calvin Klein grew at a faster pace, with 25% year-on-year increases in the first quarter, respectively. Heritage brands posted a turnover of 2,314.6 million dollars (1,933.8 million euros), 16% more.
“We are pleased to increase our earnings guidance for the year, despite the continuing volatility in the macroeconomic and geopolitical environments, which is resulting in a significantly lower foreign currency benefit than previously planned for the year,” said Emanuel Chirico, PVH’s chairman and chief executive officer. “Our strategic priorities will continue to serve as our guidelines for growth and I believe that we will execute on the significant opportunities that PVH has ahead of it.”
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