PVH Corp., the owner of iconic brands like Tommy Hilfiger and Calvin Klein, recorded a strong second quarter, with sales exceeding analysts’ estimates and leading to an upward revision of its full-year earnings outlook.
**Q2 Results**
For the three months ended July 2, 2023, PVH reported net sales of $2.34 billion, marking a 7% increase compared to the corresponding period in 2022. This surpassed the consensus estimate of $2.31 billion.
The company’s net income for the quarter stood at $208.5 million, a 15% decrease from the $246 million reported in the prior year’s quarter. However, on a per-share basis, earnings came in at $2.32, above the Refinitiv estimate of $2.26.
**Brand Performance**
PVH’s flagship brands, Tommy Hilfiger and Calvin Klein, both contributed to the company’s Q2 success. Tommy Hilfiger saw a 10% sales growth, driven by strong demand in North America and Europe. Calvin Klein also posted a 4% increase in sales, with growth in both its North American and international businesses.
**Revised Outlook**
Based on the strong Q2 results, PVH raised its full-year earnings forecast. The company now expects adjusted earnings per share to be in the range of $10.95 to $11.10, up from the previous guidance of $10.65 to $10.85.
PVH CEO Stefan Larsson attributed the company’s performance to its focus on product innovation, omnichannel presence, and cost optimization. He also highlighted the resilience of the consumer in the face of economic headwinds.
**Analyst Reactions**
Analysts were generally positive about PVH’s Q2 results and revised outlook. Some analysts noted the company’s ability to navigate supply chain disruptions and inflationary pressures. Others pointed to the strong demand for PVH’s brands and the company’s focus on expanding its e-commerce presence.
Overall, PVH’s Q2 performance and revised earnings forecast indicate a strong position despite macroeconomic challenges. The company remains optimistic about the rest of 2023 and is confident in its long-term growth prospects..
