PVH Corp. stock rose more than 3% late Wednesday after the parent of Calvin Klein, Tommy Hilfiger and other apparel brands swung to a first-quarter profit and raised its profit outlook for the year.
said it earned $99.9 million, or $1.38 a share, in the quarter, contrasting with a loss of $15.37 a share in the year-ago quarter. Sales rose 55% to $2.08 billion, the company said, including 95% growth for digital sales.
Analysts polled by FactSet expected PVH to report first-quarter earnings of 84 cents a share on sales of $1.9 billion.
The beat reflected “our team’s strong execution of our accelerated recovery priorities across our businesses globally,” focusing on the Calvin Klein and Tommy Hilfiger brands, international markets, and in “driving product strength with increased pricing power and margin expansion,” Chief Executive Stefan Larsson said in a statement.
PVH raised its GAAP and adjusted EPS outlook for the year, with non-GAAP EPS raised to about $6.50 from about $6 in a previous outlook. It projected sales to increase between 24% and 26% in 2021. The company also guided for second-quarter sales to rise between 34% and 36%.
Revenue and earnings for 2021 “will continue to be impacted negatively by the pandemic,” PVH said. On a brighter side, the company’s international businesses “have exceeded and are expected to continue to exceed 2019 pre-pandemic revenue levels for the remainder of 2021,” it said.
In a separate press release, PVH said its Chief Financial Officer Mike Shaffer and Calvin Klein Chief Executive Cheryl Abel-Hodges will be leaving the company. A search is underway to find a new CFO, with Shaffer leaving in September. Abel-Hodges will be moving to an advisory position from July 1 through February 2022, PVH said. Trish Donnelly, chief executive of PVH Americas, will take “full global leadership” for the Calvin Klein business, the retailer said.