PVH Corp. reported better-than-expected second-quarter sales on Thursday, driven by strong demand for its Calvin Klein and Tommy Hilfiger brands, and raised its full-year earnings forecast.
Net sales for the three months ended July 2 increased 2 percent to $2.32 billion, beating analysts’ estimates of $2.28 billion, according to IBES data from Refinitiv.
PVH, which also owns the Speedo and Van Heusen brands, reported adjusted earnings of $2.14 per share, topping estimates of $1.99 per share.
The company said its Calvin Klein brand, which has been undergoing a turnaround under new creative director Raf Simons, saw a 9 percent increase in sales, while Tommy Hilfiger’s sales rose 3 percent.
PVH now expects full-year earnings in the range of $10.15 to $10.35 per share, up from its previous forecast of $9.80 to $10.10 per share.
The company also said it expects net sales for the year to be in the range of $9.62 billion to $9.72 billion, compared with its prior estimate of $9.48 billion to $9.63 billion.
PVH’s results add to a string of positive earnings reports from major retailers this week, including Macy’s Inc., Kohl’s Corp. and Nordstrom Inc., suggesting that consumer spending remains resilient despite concerns about an economic slowdown.
Shares of PVH were up 4.6 percent in premarket trading on Thursday.
Here are some key highlights from PVH’s second-quarter results:
* Net sales increased 2 percent to $2.32 billion.
* Adjusted earnings per share were $2.14, topping estimates of $1.99.
* Calvin Klein sales rose 9 percent.
* Tommy Hilfiger sales increased 3 percent.
* The company raised its full-year earnings forecast to $10.15 to $10.35 per share.
* PVH expects net sales for the year to be in the range of $9.62 billion to $9.72 billion.
Overall, PVH’s second-quarter results were strong, indicating that the company is executing well on its turnaround plan and that consumer demand for its brands remains healthy..
