Calvin Klein owner PVH expects strong dollar to hurt profit

PVH Corp, owner of clothing brands such as Calvin Klein and Tommy Hilfiger, forecast lower-than-expected profit for the first quarter and the full year, as it expects to be hurt by a strengthening dollar.

PVH shares were down 1 percent at $103 in extended trading on Wednesday.
The company said it expects the strong dollar to impact full-year earnings by $1.20 per share. It estimated another 10 cent per share hit from economic instability in Russia.

PVH gets about 45 percent of sales from international markets, primarily Japan and Europe.

The dollar had risen about 8.5 percent against a basket of major currencies from November to February. A majority of analysts polled by Reuters were "confident" the rally would continue mostly unabated through this year.

PVH forecast a profit of $6.75-$6.90 per share for the year ending February 2016 and a profit of $1.35-$1.40 per share for the current quarter.

Analysts on average were expecting a full-year profit of $7.36 per share and first-quarter profit of $1.52 per share, according to Thomson Reuters I/B/E/S.

Retail comparable sales in North America were flat at both its Tommy Hilfiger and Calvin Klein stores for the fourth quarter ended Feb. 1, which included the holiday shopping season.

The company said net income attributable to it was $51.5 million, or 62 cents per share, compared with a loss of $37.5 million, or 46 cents per share, a year earlier.

Excluding items, PVH earned $1.76 per share, just ahead of the $1.73 analysts expected.

Revenue rose 0.8 percent to $2.07 billion, short of the average analyst estimate of $2.10 billion.

PVH shares have fallen about 11 percent in the past 12 months through Wednesday.

$1 = £0.67