PVH Corp.’s sales continued to grow in the second quarter and its profits are surging.
The brand operator tallied consolidated net sales of $1.96 billion for the quarter ended July 31, a 6 percent increase over the same period last year, with net income of $119.7 million, compared to net income of $90.5 million last year.
Earnings per share totaled $1.52, a 37 percent jump from initial expectations of $1.38 for the quarter.
Wall Street was happy with the results and in after-hours trading sent the company’s stock up 3.5 percent to $124.29, the highest levels this year.
As for the company’s biggest brands, Calvin Klein and Tommy Hilfiger, total sales increased 8 percent to $786 million and 4 percent to $892 million, respectively. While comparable sales continued to decline in North America, international comp sales grew 20 percent for Calvin and 6 percent for Tommy.
Chairman and chief executive officer Emanuel Chirico said the second-quarter results reflect the company’s “continued momentum and ongoing operating efficiencies,” along with a $25 million increase in marketing spending for Calvin Klein and Tommy Hilfiger.
Chirico said the extra investment in the image of both brands “will continue to drive market share gains and allow us to capitalize on the brands’ significant international expansion opportunities over the next several years.”
Given the sales increases, PVH is now planning this year to put an additional $10 million toward marketing for both brands.
The sales boost also led the company to raise its full-year earnings-per-share guidance to between $6.44 and $6.54. The previous expectation was topped at $6.34.
During the first quarter, PVH had a more mixed performance buoyed by an increase in sales. Consolidated net sales increased 3.3 percent to $1.87 billion, while net income fell sharply to $70.1 million from $231.6 million.
Coming off of a 2016 that showed comparable sales declines in North America for Calvin Klein and Tommy Hilfiger, PVH said it would be taking a “prudent approach” to 2017.
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