PVH Corp (NYSE:PVH) reported upbeat earnings for its first quarter, while sales missed estimates. The company also lowered its annual profit outlook.
First-quarter EPS was $1.08 compared to guidance of $0.25 to $0.30, primarily due to a shift in the timing of restructuring costs
EPS included a negative impact of $0.15 per share related to foreign currency translation compared to guidance of $0.14
First-quarter revenue increased 2% to $2.4 billion (increased 6% on a constant currency basis) compared to the prior-year period.
The Company’s 2019 guidance assumes that two acquisitions will close in the second quarter of 2019. The first is the Company’s pending acquisition of the approximately 78% interest in Gazal Corporation Limited that it does not already own.
The Company and Gazal jointly own and manage a joint venture, PVH Brands Australia Pty. Limited, which licenses and operates businesses under the “TOMMY HILFIGER,” “CALVIN KLEIN” and “Van Heusen” brands, along with other licensed and owned brands
During the first quarter of 2019, the Company repurchased approximately 500,000 shares of its common stock for $61 million (9.5 million shares for $1.1 billion since inception) under the $2.0 billion stock repurchase program authorized by the Board of Directors through June 3, 2023.
PVH CEO Emanuel Chirico noted, "We are pleased with our first quarter 2019 results, as our earnings per share exceeded the high end of our guidance range. While the global retail environment was challenging, the power of our diversified business model and the strength of our brands, global platforms and teams drove our businesses forward."
Shares shrank $12.32, or 12.4%, to $86.93
