PVH Corp (NYSE: PVH) stock rose 2.2% on May 31st on the back of better than expected results for the first quarter of 2018 due to booming clothing sales.
PVH in the first quarter of FY 18 has reported the adjusted earnings per share of $2.36, beating the analysts’ estimates for the adjusted earnings per share of $2.25 as per Thomson Reuters. Analysts. The company had reported the adjusted revenue growth of 16.5 percent to $2.3 billion in the first quarter of FY 18 from $1.88 billion last year, beating the analysts’ estimates for revenue of $2.28 billion.
For the second quarter 2018, PVH expects earnings per share on a non-GAAP basis will be in a range of $2.05 to $2.10 compared to $1.69 in the prior year period. The revenue in the second quarter of 2018 is expected to rise approximately 10% (increase approximately 9% on a constant currency basis) compared to the prior year period. The revenue for the Calvin Klein business in the second quarter is expected to rise approximately 15% (increase approximately 14% on a constant currency basis). The revenue for the Tommy Hilfiger business in the second quarter is expected to rise approximately 13% (increase approximately 12% on a constant currency basis). The revenue for the Heritage Brands business in the second quarter is expected to decrease approximately 4% compared to the prior year period. Further, the net interest expense in the second quarter of 2018 is forecasted to be relatively flat compared to $30 million in the prior year period. PVH estimates that the second quarter 2018 effective tax rate will be in a range of 19% to 20%, which includes the estimated impact of the Tax Legislation.
For FY 18, PVH expects earnings per share on a non-GAAP basis will be in a range of $9.05 to $9.15 compared to $7.94 in 2017. The revenue in 2018 is expected to increase approximately 6% (increase approximately 5% on a constant currency basis) as compared to 2017. Revenue for the Calvin Klein business is expected to increase approximately 8% (increase approximately 7% on a constant currency basis). Revenue for the Tommy Hilfiger business is expected to increase approximately 7% (increase approximately 6% on a constant currency basis). Revenue for the Heritage Brands business is projected to be relatively flat. Further, net interest expense in 2018 is projected to decrease to approximately $120 million from $122 million in 2017.