PVH Posts Upbeat Q2 Earnings, Lifts Full-Year Forecast

Shares of

rose around 5 percent in after-hours trading after the company reported upbeat earnings for the second quarter and lifted its full-year earnings forecast. The New York-based company posted quarterly net income of $102.2 million, or $1.22 per share, down from $126.5 million, or $1.52 per share, in the year-ago period. Excluding items, earnings on a non-GAAP basis came in at $1.37 per share. Its total revenue declined to $1.86 billion from $1.98 billion. However, analysts were expecting earnings of $1.29 per share on revenue of $1.82 billion. The average estimate among 3 Estimize users was for earnings of $1.43 per share and revenue of $1.86 billion. Revenue in the Calvin Klein business dropped 4 percent on a GAAP basis, while revenue in the Tommy Hilfiger business shrank 7 percent in the latest quarter. Revenue in the Heritage Brands business slipped 6 percent for the quarter. Emanuel Chirico, Chairman and Chief Executive Officer, said, "We are very pleased with our second quarter results, which exceeded our top and bottom line guidance. Our second quarter performance highlighted continued strength in our Calvin Klein business, as consumers responded well to our recent product initiatives, particularly in underwear." The company now expects full year 2015 adjusted earnings of $6.90 to $7.00 per share, versus prior forecast of $6.85 to $6.95 per share. PVH expects 2015 revenue to rise 4 percent on a constant currency basis and drop 2 percent on a GAAP basis. For the third quarter, the company expects adjusted earnings of $2.45 to $2.50 per share. It projects revenue to rise 3 percent on a constant currency basis and drop 3 percent on a GAAP basis. PVH shares climbed 4.99 percent to $117.16 in the after-hours trading session.