Aug 28, 2012
PVH raises full-year profit outlook again, 2nd-quarter profit beats expectations
Aug 28, 2012
Clothing maker PVH Corp raised its full-year profit outlook for the third time this year, after reporting a quarterly profit above Wall Street expectations as its Tommy Hilfiger brand remained popular with shoppers and its European business continued to grow.
The company also said lower product costs and growth of its Tommy Hilfiger brand would continue to drive results through the rest of the year.
Rising raw material costs and higher spending on advertising had been denting the clothier's operating margins.
The company, which is also known for its Calvin Klein brand, now expects to earn about $6.25 to $6.32 per share for the year, up from $5.90 to $6.00 per share it first forecast in January.
Analysts were expecting PVH to earn $6.22 per share for the full year, according to Thomson Reuters I/B/E/S.
Second-quarter profit rose to $87.7 million, or $1.19 per share, from $66.7 million, or 92 cents per share, a year earlier.
On an adjusted basis, the company earned $1.25 in the quarter.
Revenue at company, which shortened its name from Phillips-Van Heusen Corp last year, was relatively flat at $1.34 billion.
Analysts on average had expected earnings of $1.20 per share on revenue of $1.34 billion for the quarter.
Shares of New York-based PVH rose 3 percent to $90.99 in after-market trade. They had closed at $88.49 on Monday on the New York Stock Exchange.
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