Apparel-Seller PVH Lowers 2019 Outlook
30 May 2019 - 7:31AM
Dow Jones News
By Aisha Al-Muslim
Apparel company PVH Corp. (PVH), whose brands include Tommy
Hilfiger and Calvin Klein, lowered its revenue and adjusted
earnings guidance for the full year.
For 2019, the company said revenue is expected to increase 3%,
compared with its previous projection of 4%. The company also
guided adjusted earnings per share of $10.20 to $10.30 for the
year, down from its prior outlook range of $10.30 to $10.40 a
share.
The adjusted earnings guidance includes the estimated negative
impact of about 32 cents a share due to foreign currency
translations.
"Further volatility in foreign exchange rates is expected to
pressure our full-year earnings per share by an incremental $0.10
compared to our prior expectations," Chief Executive Emanuel
Chirico said in prepared remarks. "As such, we believe it is
prudent to factor this into our updated full-year earnings
outlook."
The company's 2019 guidance assumes that two acquisitions will
close in the second quarter, PVH said.
The first acquisition is of a 78% interest in Gazal Corp. that
it doesn't already own. PVH Brands Australia Pty. Ltd., which
licenses and operates businesses under various PVH brands, will
come under the company's full ownership as a result of the
acquisition.
The second is the company's pending acquisition of the Tommy
Hilfiger retail business in Hong Kong and countries in Central and
Southeast Asia from the company's licensee in those markets. The
pending acquisitions are expected to add about $150 million of
revenue in 2019.
For the second quarter, the company guided total revenue to be
flat compared to a year earlier. The company also guided adjusted
earnings per share of $1.85 to $1.90, compared with analysts'
estimates of $2.42 a share.
"Looking ahead, the volatile and challenging macroeconomic
backdrop has continued into the second quarter, with particular
softness across the U.S. and China retail landscape," Mr. Chirico
said.
The stock fell 8.2% to $91.10 in after-hours trading. Shares are
down 36% in the last 12 months.
Earlier this month, PVH named the former chief executive of
Ralph Lauren Corp. (RL) as its president. He is scheduled to take
on the newly created position effective June 3. He will manage the
company's branded business and regions.
Write to Aisha Al-Muslim at aisha.al-muslim@wsj.com
(END) Dow Jones Newswires
May 29, 2019 17:16 ET (21:16 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
Gazal (ASX:GZL)
Historical Stock Chart
From May 2024 to Jun 2024
Gazal (ASX:GZL)
Historical Stock Chart
From Jun 2023 to Jun 2024