PVH cuts profit and revenue forecast as tariffs, Hong Kong protests bite

(Reuters) - PVH Corp cut its full-year profit forecast for the second time this year on Wednesday, as the Calvin Klein owner sees pressure from the protracted U.S-China trade tensions and the ongoing protests in Hong Kong. U.S

Reuters August 29, 2019 06:05:36 IST
PVH cuts profit and revenue forecast as tariffs, Hong Kong protests bite

PVH cuts profit and revenue forecast as tariffs Hong Kong protests bite

(Reuters) - PVH Corp cut its full-year profit forecast for the second time this year on Wednesday, as the Calvin Klein owner sees pressure from the protracted U.S-China trade tensions and the ongoing protests in Hong Kong.

U.S. retailers have been worried about the cost of the bitter trade war with President Donald Trump's latest plans to further hike tariffs on Chinese goods imported to the U.S.

The Trump administration on Wednesday made official its extra 5% tariff on $300 billion in Chinese imports and set collection dates of Sept. 1 and Dec. 15.

PVH, which imported about $400 million of inventory from the Asian country last year, said the tariff is expected to hit its earnings by about 20 cents per share in 2019.

Adding to the company's worries are the increasing promotions by retailers and department store operators in the domestic U.S. market as they grapple with sluggish sales due to a fall in tourist spending as well as the months of political turmoil in Hong Kong.

PVH now expects full-year adjusted profit between $9.30 per share and $9.40 per share compared to prior estimate of $10.20 per share to $10.30 per share.

The company also cut its full-year revenue forecast to about 1% growth, down from its prior outlook of about 3% 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. Sales in the brand, its biggest revenue generator, rose 8% to $1.11 billion.

Overall, revenue rose 1.3% to $2.36 billion, beating the average analyst estimates of $2.33 billion, according to IBES data from Refinitiv.

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

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

Shares of the New-York based company fell marginally in after market trading.

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

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Trump says he is willing to spend his own money to win re-election
World

Trump says he is willing to spend his own money to win re-election

By Jeff Mason WASHINGTON (Reuters) - U.S. President Donald Trump, facing the possibility of a cash crunch, said on Tuesday he would spend "whatever it takes" of his own money to finance his 2020 presidential campaign against Democrat Joe Biden if he had to

Brazil finalizing bill to target financiers of 'fake news' attacks
World

Brazil finalizing bill to target financiers of 'fake news' attacks

By Lisandra Paraguassu BRASILIA (Reuters) - Brazilian House Speaker Rodrigo Maia said on Tuesday that lawmakers are currently finalizing the text of a bill targeting those that finance "fake news" attacks on social media sites, adding that it could be voted on by the end of this year. The draft of the Brazilian bill was approved in the Senate on June 30, but the lower house created a working group to suggest modifications. Those changes will be finalized in two weeks, Maia said

Ireland plans to open all pubs on Sept. 21 - minister
World

Ireland plans to open all pubs on Sept. 21 - minister

DUBLIN (Reuters) - Ireland plans to allow the reopening of all pubs on Sept. 21, dropping a ban on bars that do not serve food, a senior minister said on Tuesday.