(Filed Under Financial and General Interest News). PVH second quarter net income jumped to $119.4 million on sales of $1.96 billion compared to income of $90.5 million on sales of $1.85 billion in the three months ended July 31, 2016.
“Our better than expected second quarter results reﬂect the continued momentum and ongoing operating efficiencies across our diversiﬁed business model,” declared Emanuel Chirico, chairman and CEO. “Our results reﬂect a planned increase of approximately $25 million of marketing compared to the prior year related to Calvin Klein and Tommy Hilfiger, which we believe will continue to drive market share gains and allow us to capitalize on the brands’ significant international expansion opportunities over the next several years.”
He added, “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, despite the ongoing volatility in the macroeconomic and geopolitical environment. 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.”
“In today’s ever-changing consumer landscape, we are actively adapting our businesses to gain market share by ﬁnding innovative ways to engage consumers, while investing across our organization. We believe that we are well-positioned to execute our strategic priorities, while delivering long-term sustainable growth and stockholder value.”
The earnings release lacked any detail as it pertains to underwear. In fact, the word was not mentioned once in the 39 page document. The category received, however, a couple of brief mentions in the conference call to discuss the results with analysts. Said Chirico, “As we move further into fall into holiday, we will continue to roll out our jeans and underwear marketing initiatives with an enhanced direct-to-consumer focus to drive our business as we enter the all important holiday selling season.”
Chirico affirmed that men’s and women’s underwear has been strong across many markets, while pointing to one area of prominence: “Business momentum the last couple of years in Calvin in Europe in particular to a great extent has been driven by apparel but really our underwear business has been off the charts in those markets and that business continues to be very healthy and grow.” — NM
A full transcript of the conference call can be found here: https://seekingalpha.com/article/4101722-pvhs-pvh-ceo-manny-chirico-q2-2017-results-earnings-call-transcript?page=1
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