Tommy Hilfiger, Calvin Klein lift PVH Corp's Q2 results
Thanks to increased sales from Calvin Klein and Tommy Hilfiger, PVH’s second quarter results exceeded expectations following a weak performance in 2016. With the results, PVH has not only raised its earning outlook for the rest of the year but also pledged another $10 million marketing for both Calvin Klein and Tommy Hilfiger.
Sales for Calvin Klein increased 8 percent to $786 million compared to the same period last year, while Tommy Hilfiger revenues grew 4 percent to $892 million. While the Tommy Hilfiger brand saw strong sales in Europe and Asia with a 9 percent increase in international sales overall, its North American revenues fell 2 percent. Calvin Klein’s sales also fell in North America by 1 percent, mostly due to its deconsolidation in Mexico.
As a whole, PVH Corp’s net sales for the quarter ending on July 31 reached $1.96 billion, representing a 6 percent increase compared to the same period last year. The corporation also saw its stock reach its highest level yet in 2017, jumping 3.5 percent to $124.29.
Despite the decrease in sales from the corporation’s largest brands in North America, PVH CEO and chairman Emanuel Chirico was optimistic about the results. “We have raised our full year earnings outlook based on our second quarter outperformance, an improvement in foreign currency rates and our belief that the strength of our brands will continue to drive our second half performance.”
PVH will also devote more funds to its major brands after reviewing the second quarter results. “In addition, in line with our projected full year sales increase, we are now planning to invest an additional $10 million in marketing during the second half of this year to capitalize on the continued momentum we are seeing in our Tommy Hilfiger and Calvin Klein businesses,” Chirico commented.
Tommy Hilfiger has unveiled a series of high-profile collaborations this year, including an upcoming collection with Vetements and its continued partnership with Gigi Hadid. Since former Christian Dior creative director Raf Simons joined the brand, Calvin Klein has made headlines with its new choices for spokespeople. The brand has signed deals with the likes of Paris Jackson, the cast of Moonlight and Brooke Shields.
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