PVH Report Shows Calvin Klein Performance Growth

Under the strong performance of its brand Calvin Klein, the US apparel group PVH Corp. exceeded its analysts' expectations in the first quarter, and announced that the annual profit forecast was raised, which led to a 3.2% rise in the group's stock price on Monday.

As of the first quarter of May 3, 2015,

Net profit increased three times from 35 million 200 thousand US dollars in the same period in 2014 to US $114 million 100 thousand, diluted about 1.37 US dollars per share.

Excluding currency effects and other one-time items, adjusted earnings per share reached $1.50, higher than analysts had generally expected $1.38.

Total revenue decreased by 4.3% to $1 billion 880 million from $1 billion 960 million, up 3.3% from the fixed exchange rate.

Gross margin declined by 20 basis points, representing 52.6% of total revenue in the same period last year, accounting for 52.4% of total revenue this year.

According to the brand, total revenue of Calvin Klein declined 1.7% to 653 million 700 thousand US dollars from 665 million 300 thousand US dollars a year last year, but it rose 5.1% after excluding the exchange rate.

The brand's pre tax surplus grew by 21.4% to $897 million.

In contrast, the total revenue of Tommy Hilfiger decreased by 11.1% to 767 million 100 thousand US dollars from 862 million 400 thousand US dollars, and increased by only 0.7% according to the fixed exchange rate.

Tommy Hilfiger's pre tax surplus fell from $115 million 200 thousand to $92 million 100 thousand, or more than 20%.

Regionally, Calvin Klein rose 0.4% to 338 million 800 thousand dollars in North America, while Tommy Hilfiger fell 2.4% to 353 million 900 thousand dollars.

According to the data, Calvin Klein business strength has pushed PVH group's first quarter performance to exceed expectations.

Emanuel Chirico, chairman and chief executive officer of PVH group, said: "the strong fundamentals of our brand Calvin Klein and Tommy Hilfiger business offset some of the Calvin Klein and Tommy Hilfiger American business weakness, while the serious negative impact of the US dollar on international tourists' consumption."

Despite currency fluctuations and instability

Pressure, the group still raised annual expectations, earnings per share rose from the previous 6.75 -6.90 to 6.85- 6.95 dollars.

In addition, the group has set up a stock repurchase plan worth three US dollars for a period of 500 million years.

Until Monday after the deal, the US apparel group PVH Corp. had a market capitalization of $8 billion 653 million, and the group's share price rose 4.12% to 108.99 dollars.

The PVH (Philips-Van-Heusen) group is operating in the US.

The clothing group of women's wear, children's wear and footwear products, founded in 1881, is a shirt with annual sales of more than 8 billion dollars and the world's second largest clothing group.

Today, PVH is headquartered in New York with Calvin Klein, Tommy Hilfiger, Izod, Van Heusen, Arrow and other brands, and has obtained the right to sell DKNY, Michael, Arrow, hex, cable, and other private brands.