Calvin Klein owner PVH cuts full-year profit, revenue forecast

Calvin Klein owner PVH cuts full-year profit, revenue forecast

PVH Corp cut its full-year profit and revenue forecast on Wednesday, as the Calvin Klein owner sees pressure from the escalating trade tensions between the U.S. and China and the ongoing protests in Hong Kong.

Boards with Calvin Klein store logo are seen on a shopping center at the outlet village Belaya Dach
FILE PHOTO: Boards with Calvin Klein store logo are seen on a shopping center at the outlet village Belaya Dacha outside Moscow, Russia, April 23, 2016. REUTERS/Grigory Dukor

REUTERS: PVH Corp cut its full-year profit and revenue forecast on Wednesday, as the Calvin Klein owner sees pressure from the escalating trade tensions between the U.S. and China and the ongoing protests in Hong Kong.

The company now expects full-year adjusted profit between US$9.30 and US$9.40 per share compared to prior estimate of US$10.20 to US$10.30 per share. PVH said the U.S. tariffs on Chinese goods would hit its earnings by about 20 cents in 2019.

The company also expects full-year revenue to grow about 1per cent, down from its prior outlook of about 3per cent rise.

Chief Executive Officer Emanuel Chirico said the volatility in the macro environment, the global retail landscape and the continuing escalation of trade tensions between the U.S. and China will cause its business to remain under pressure, as will the ongoing impact of protests in Hong Kong.

Despite the dull outlook, PVH reported better-than-expected quarterly sales boosted by higher demand for its Tommy Hilfiger apparels.

Revenue rose 1.3per cent to US$2.36 billion, beating the average analyst estimates of US$2.33 billion, according to IBES data from Refinitiv.

Net income attributable to the company rose to US$193.5 million, or US$2.58 per share, in the second quarter ended Aug. 4, from US$165.2 million, or US$2.12 per share, a year earlier.

Excluding items, the company earned US$2.10 per share. Analysts, on average, had estimated a profit of US$1.88 per share.

(Reporting by Soundarya J in Bengaluru; Editing by Shailesh Kuber)

Source: Reuters

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