PVH Shares Gain On Raised FY21 Revenue Outlook

PVH Corp PVH has raised its FY21 sales outlook due to its plan to sell certain intellectual property and other assets of its Heritage Brands business to Authentic Brands Group LLC.
The cash purchase price for the transaction is about $220 million and will include the IZOD, Van Heusen, ARROW, and Geoffrey Beene brand trademarks.
The transaction is expected to close in the third quarter of 2021.
As a result of the transaction, PVH has raised its FY21 sales growth guidance to 22%-24% year-on-year, from 19%-21% earlier.
PVH has reiterated FY21 Adjusted EPS guidance of ~$6.50 and Q2 EPS of $1.15-$1.18.
Price action: PVH shares are trading higher by 4.09% at $109.01 on the last check Wednesday.

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