Revenue benefited from continued momentum in its Tommy Hilfiger and Calvin Klein businesses. Calvin Klein business revenue grew 18% helped by outstanding performance in Europe and Asia as well as strong wholesale performance across all categories. Comparable store sales rose 5% at Calvin Klein North America and 9% at Calvin Klein International.
Tommy Hilfiger and Calvin Klein businesses’ strength drove PVH earnings higher.
Revenue in the Tommy Hilfiger business surged 21% on continued strong performance across all International regions and channels as well as strong performance in the North American wholesale business. Comparable store sales rose 9% both in Tommy Hilfiger North America and Tommy Hilfiger International.
Revenue in the Heritage Brands business rose 5% principally due to a shift in the timing of shipments into the first quarter from the second quarter as compared to the prior year periods. Comparable store sales increased 1%.
Looking ahead into fiscal 2018, PVH lifted its EPS guidance to a range of $8.81-$8.91 from the previous estimate of $8.76-$8.86, and its non-GAAP EPS outlook to a range of $9.05-$9.15 from the prior forecast of $9.00-$9.10. Both the estimates included a reduced positive impact of $0.12 related to foreign currency translation compared to $0.35 previously expected. The company now expects revenue to increase about 6% compared to the prior forecast of about 7%.
For the second quarter, the company sees EPS of $1.98-$2.03, non-GAAP EPS of $2.05-$2.10 and revenue growth of about 10%.
“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,” executive chief Emanuel Chirico said.
During the first quarter, PVH repurchased 400,000 shares of its common stock for $54 million under the $1.250 billion stock repurchase program authorized by the board through June 3, 2020.
Shares of PVH ended Wednesday’s regular trading session up 0.25% at $155.50 on the Nasdaq. The stock had been trading between $102.05 and $163.78 for the past 52 weeks. Despite the strong results, the stock dipped about 1% after the bell.