NEW YORK - PVH Corp. (NYSE: NYSE:PVH) delivered a positive surprise in its first quarter, with earnings surpassing analyst expectations and revenue meeting consensus estimates.
The apparel giant reported adjusted earnings per share (EPS) of $2.45, which was $0.29 higher than the analyst estimate of $2.16. Revenue remained steady at $1.93 billion, aligning with the consensus estimate.
The company's stock responded favorably to the news, climbing 1.4%.
PVH Corp., known for its iconic brands Calvin Klein and Tommy Hilfiger, reaffirmed its full-year revenue outlook with a projected decrease of 6% to 7%, consistent on a constant currency basis. The operating margin forecast remains approximately flat compared to 10.1% in 2023. Notably, the company raised its full-year EPS guidance on a GAAP basis to $11.15 to $11.40, up from the previous range of $10.75 to $11.00. On an adjusted basis, EPS guidance increased to $11.00 to $11.25, exceeding the analyst consensus of $10.99.
Stefan Larsson, Chief Executive Officer, commented on the company's ability to meet revenue expectations and exceed earnings guidance for the quarter. He attributed the success to growth in the direct-to-consumer business and strategic initiatives that strengthened brand positioning and pricing power. Larsson also highlighted the growth of Calvin Klein and Tommy Hilfiger in North America and Asia Pacific, as well as the execution of quality sales initiatives in Europe.
Zac Coughlin, Chief Financial Officer, expressed confidence in the company's full-year outlook and its ability to navigate the challenging macroeconomic environment. He emphasized the company's solid first-quarter results, which included strong gross margin expansion and double-digit EPS growth.
PVH Corp. continues to focus on its PVH+ Plan growth drivers, with notable progress in key product categories and gross margin expansion. The company's commitment to shareholder returns was underscored by approximately $200 million in share repurchases during the first quarter.
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