PVH shrinks its benefit 20% in first half and lowers full year outlook
PVH states that its new projections reflect trade war escalations, the impact of Hong Kong protests, and the challenging retail environment.
Trade war hits the results of American giants. PVH, the owner of Tommy Hilfiger and Calvin Klein, has lowered its full-year outlook due to the potential impact of the trade war between the United States and China, the Hong Kong protests and the challenging retail environment.
The company made this public in the presentation of its first semester results, that show a drop in its benefit of 20% and a rise in sales of 1.6% between October and April. During this period, PVH’s revenue was 4.4 billion dollars and its net benefit was 275.5 million dollars.
During the second quarter, the company closed two M&As, the acquisition of its Australian partner and the purchase of the Tommy Hilfiger business in Center and Southeast Asia.
PVH revenue during the first half stood at 4.4 billion dollars
Through a press release, the company stated that “our businesses in North America and across China experienced weak traffic trends, including the impact of protests in Hong Kong, resulting in a more promotional environment”.
“Although we are pleased with our second quarter and first-half results, we have taken a conservative approach to our second half outlook”, stated Emanuel Chirico, president, and CEO of PVH.
The American giant, owner of Calvin Klein and Tommy Hilfiger expects to grow 1% in 2019
The company lowered its projections for the year due to “the global retail landscape and the continuing escalation of the trade tensions between the U.S. and China will cause our business to remain under pressure, as will the ongoing impact of protests in Hong Kong”.
This said, PVH expects to grow 1% in 2019. The company forecasts a rise of 5% in Tommy Hilfiger, a drop of 2% in Calvin Klein and a 1% down in the Heritage Brands division.
The projection of the earning per share is between 7.95 and 8.05 dollars, compared to the 9.65 dollars of 2018. After the announcement, PVH shares dropped 12%.
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