Calvinklein Regained Growth In The North American Market

In the two quarter, CalvinKlein picked up growth in the North American market, driving parent company PVHCorp. (NYSE:PVH) revenue and earnings to exceed market expectations. The group also raised its annual target while PVHCorp. (NYSE:PVH) rose 5.25% on Wednesday.

PVHCorp. expects growth of CalvinKlein in the three quarter will continue to increase. Under constant exchange rate, 7% of revenue growth is expected, TommyHilfiger is expected to increase by 4%, while HeritageBrands is expected to fall 5%, and overall revenue growth is expected to be 3%.

Annual CalvinKlein and TommyHilfiger revenues are expected to increase by 8% and 4% respectively, while HeritageBrands will fall by 3%, and overall revenue growth is expected to be 4%.

PVHCorp. now expects annual adjusted EPS to reach US $6.90-7.00, originally expected to be US $6.85-6.95, and the market is expected to be US $6.92.

For the current three quarter, the Group expects adjusted earnings per share to be between 2.45-2.50 US dollars and market expectations of US $2.45.

In the two quarter ended August 2nd, net profit decreased by 19.2% to 102 million 200 thousand US dollars a year, and earnings per share declined to US $1.22 from US $1.52 in the same period last year.

Drag.

The adjusted EPS is US $1.37, which is better than the US $1.29 forecast.

Gross profit margin was 53.8%, an increase of 40 basis points over the same period last year.

The international market continued to be affected by the strong dollar, with revenues falling by 5.9% to 290 million 400 thousand dollars, 7% at constant exchange rates, 3% in the same store, and continued in Europe.

Progress has also been made.

The brand's total revenue in the two quarter decreased by 3.9% to $648 million 600 thousand per year, and increased by 3% at a constant exchange rate.

The improvement of North American and international business led to the overall revenue decline in the two quarter narrowed from 6.9% in the first quarter to 6.9%, falling to 810 million 700 thousand US dollars, increasing 5% at a constant exchange rate, but by only 2% in the first quarter.

In the international market, 9% of the same store sales grew particularly brighten, while the same store sales in North America also stopped falling. However, the brand and CalvinKlein continued to suffer from a sharp decline in passenger traffic and a sharp drop in sales of international tourist attractions in the US.

Including VanHeusen, Arrow and Speedo brands, HeritageBrands business revenue was $404 million 700 thousand, a decrease of 6% over the same period last year.

The group's total revenue amounted to 1 billion 884 million US dollars, outperforming the market forecast of US $1 billion 820 million, a decrease of 4.6% over the same period last year, and an increase of 2% under the constant exchange rate of 4.6%.