PVH Q3 Profit Beats Views, Shares Rise

Shares of PVH Corp PVH surged 3 percent in after-hours trading Wednesday after the company reported better-than-expected earnings for the third quarter. The New York-based company reported a quarterly profit of $221.9 million, or $2.67 per share, down from $225.7 million, or $2.71 per share, in the year-ago period. Excluding the negative impact related to foreign currency exchange and other items, the company's profit rose to $2.66 per share from $2.56 per share. Its revenue slipped 3.1 percent to $2.16 billion. However, analysts were expecting earnings of $2.47 per share on revenue of $2.16 billion. On a constant currency basis, revenue surged 7 percent in the Calvin Klein business, while revenue rose 4 percent on a constant currency basis in the Tommy Hilfiger business. During the first nine months of 2015, PVH repurchased around 0.7 million shares of its common stock for $75 million. Emanuel Chirico, Chairman and Chief Executive Officer, said, "We are very pleased with our third quarter results, which exceeded our expectations despite the difficult and volatile market environment, including the slowdown in traffic experienced in the U.S. during the quarter. Our results continued to highlight the strength of our Calvin Klein and Tommy Hilfiger International businesses and improving trends in our Heritage Brands business. The U.S. market during the second half of the quarter and currently in the fourth quarter continues to experience increased softness in traffic trends, in large part driven by the decline in international tourist traffic and spending trends coupled with unseasonably warm weather." For the year, PVH reaffirmed its adjusted profit forecast of $6.90 to $7 per share. However, the company projects revenue to drop around 3 percent, versus earlier forecast of a 2 percent decline. For the fourth quarter, the company expects Q4 adjusted earnings of $1.37 to $1.47 per share, versus analysts' estimates of $1.60 per share. PVH shares gained 3.02 percent to $96.20 in after-hours trading.