PVH (NYSE:PVH) rose to the highest in nearly seven weeks after the apparel maker behind brands Calvin Klein and Tommy Hilfiger reported better-than-expected results in its fiscal first quarter.
Shares rose to $111.85, the highest intraday price since April 9, and were trading at $111.39, up 6.4 percent, at 9:50 a.m. in New York. The stock had lost 18 percent since the beginning of the year through yesterday.
Net income more than tripled to $114.1 million, or $1.37 per share, for the three months ended May 3, from $35.3 million, or $0.42 per share, for the year-ago quarter, the New York-based company said in a statement late yesterday.
Adjusted net income was $1.50 per share, topping the average estimate of $1.38 per share, according to Thomson Reuters.
Revenue fell 4 percent to $1.88 billion from $1.96 billion in the same quarter last year, but beat the Wall Street consensus of $1.86 billion.
"Strong underlying fundamentals in our international Calvin Klein and Tommy Hilfiger businesses was partially offset by softness in our U.S. Calvin Klein and Tommy Hilfiger businesses, where a strong U.S. dollar negatively impacted international tourist spending," PVH chief executive officer Emanuel Chirico said in the statement.
The company also said its board of directors has authorized a $500 million three-year stock buyback program.
Looking forward, the company forecasts revenue decline of about 8 percent in the fiscal second quarter and adjusted earnings of $1.25 to $1.30 per share, which reflects an expected $0.30 per share negative impact mainly related to foreign currency exchange rates.
Analysts currently expect the company to earn $1.43 per share on revenue decline of 4.6 percent for the second quarter.
PVH’s brand portfolio also includes Van Heusen, IZOD, ARROW, Warner's and Olga. PVH also holds Speedo, which is licensed for North America and the Caribbean.