Calvin Klein Parent PVH's Q2 Earnings Top Estimates On Strong Asia Pacific Performance

PVH Corp PVH reported second-quarter FY23 sales growth of 4% year-on-year to $2.21 billion, beating the analyst consensus of $2.19 billion.

The increase was driven by growth in both the Tommy Hilfiger and Calvin Klein businesses and included strong performance in the company's international businesses, particularly in the Asia Pacific region.

Direct-to-consumer revenue increased 11% Y/Y, and Wholesale revenue decreased 3%.

Tommy Hilfiger's revenue increased 6% Y/Y, and Calvin Klein registered a 3% growth. Heritage Brands' revenue decreased by 11%.

Adjusted EPS of $1.98 beat the analyst consensus of $1.75.

Gross profit rose 4.3% Y/Y to $1.27 billion, and the gross margin expanded 40 basis points Y/Y to 57.6%.

The company held $372.8 million in cash and equivalents as of July 30, 2023. Inventory increased 6.2% to $1.79 billion.

PVH repurchased 2.4 million shares of its common stock for $200 million during the second quarter of 2023.

Outlook: PVH continues to see FY23 revenue to increase 3% - 4%.

The company raised FY23 non-GAAP EPS outlook to about $10.35 from the previous $10.00 versus the estimate of $10.02.

For Q3, the company expects revenue to increase in mid-single-digit and non-GAAP EPS of $2.70 versus the estimate of $2.96.

PVH's planned stock repurchases in 2023 has been increased to about $400 million.

Price Action: PVH shares closed higher by 3.11% at $80.82 on Tuesday.