PVH Corp, owner of fashion brands including Calvin Klein and Tommy Hilfiger, released its third quarter results Wednesday, coming out on top of Wall Street predictions.
The conglomerate posted an earnings beat for the tenth straight quarter on EPS of $2.60, well above both its own guidance and analysts predictions, which were both pegged around $2.40.
Growth was led by the Calvin Klein brand, where the top line increased 9 percent to $891 million compared to the same period last year. International revenue was up 16 percent, including a 7 percent bump in same-store sales. Sales in Europe and China were strongest, though North America also pulled a 5 percent sales gain to $502 million, primarily driven by wholesale.
News at Tommy Hilfiger was more of a mixed bag. While revenue for the quarter was up 4 percent to $927 million, including a 16 percent jump in international revenue, Tommy Hilfiger North America posted a 7 percent revenue decrease to $402 million. PVH blamed this on continued weak foot traffic at stores located in tourist destinations, and the company’s winding down of its wholesale business in the U.S. and Canada. Same-store sales in the region were down 11 percent for the quarter.
PVH raised its earnings guidance for the remainder of fiscal 2016, saying it now expects adjusted earnings per share of $6.70−6.75, up from EPS of $6.55−$6.65 it previously anticipated.