PVH Corp. topped profit expectations for the third quarter, but trimmed its outlook for the year, citing the negative impact of currency fluctuations.
PVH’s net income in the quarter rose 14.7 percent to $225.7 million, or $2.71 a diluted share, from $196.7 million, or $2.37, a year earlier.
Excluding costs associated with the Warnaco acquisition and other items, adjusted earnings per share rose to $2.56 — 8 cents above the $2.48 analysts projected.
Revenues for the quarter ended Nov. 2 slipped 1.2 percent to $2.23 billion from $2.26 billion. Revenues in the Calvin Klein business rose 2 percent to $816 million while the Tommy Hilfiger business grew by 1 percent to $930 million. Foreign currency translation took a roughly $30 million bite out of third-quarter revenues.
Chairman and chief executive officer Emanuel Chirico said the Calvin Klein unit was improving, with newly installed shops and other changes in the jeans business taking hold.
“We continue to plan the fourth quarter prudently,” Chirico said. “Given that the U.S. dollar has strengthened significantly against several major currencies over the last three months, we have revised our full year earnings per share guidance to $7.25 to $7.30.”
That’s a cut from the $7.30 to $7.40 the company projected in September.
“We believe the geopolitical environment and economic volatility experienced globally over the past nine months will continue and that we can successfully navigate through the upcoming holiday selling season, which we expect will be very competitive and highly promotional,” Chirico said.