PVH Corp. (NYSE:PVH) shares moved higher after the fashion conglomerate whose brands include Calvin Klein and Tommy Hilfiger reported better-than-expected financial results for the first quarter.
Revenue was down 10% at $1.95 billion, better than the company’s guidance of an 11% decrease.
Adjusted earnings per share were $2.45, exceeding the company’s guidance of $2.15.
Wall Street analysts had expected revenue of $1.94 million and EPS of $2.19.
“We delivered on our revenue expectations, led by growth in our direct-to-consumer business, and beat our earnings guidance for the first quarter,” PVH CEO Stefan Larsson said in a statement.
“We further strengthened our brand positioning and pricing power in the marketplace, and as planned we generated growth for Calvin Klein and Tommy Hilfiger combined in both North America and Asia Pacific in constant currency, while successfully driving strategic quality of sales initiatives in Europe.”
For the full year, the company reiterated its revenue guidance of a 6% to 7% decrease.
However, it raised its adjusted EPS guidance to the range of $11 to $11.25 from its earlier forecast of $10.75 to $11.
“We are reaffirming our revenue outlook and raising our EPS guidance despite the continued tough macroeconomic backdrop globally, reflecting our confidence in our execution of the PVH+ Plan,” CFO Zac Coughlin commented.
“We are on track to generate significant cash flow for the year and deployed approximately $200 million in the first quarter for share repurchases.”
PVH shares traded up 3.4% at US$123 on Wednesday afternoon.