PVH cuts profit forecast for 2019; shares fall
(Reuters) - PVH Corp, the owner of Calvin Klein and Tommy Hilfiger brands, cut its adjusted profit outlook for the year, citing a challenging macroeconomic environment and a stronger dollar. Shares of the New-York based company fell 7.4 percent to $91.90 in extended trading. The company now expects 2019 adjusted profit between $10.20 per share and $10.30 per share, down from its previous forecast of $10.30 per share to $10.40 per share.
(Reuters) - PVH Corp, the owner of Calvin Klein and Tommy Hilfiger brands, cut its adjusted profit outlook for the year, citing a challenging macroeconomic environment and a stronger dollar.
Shares of the New-York based company fell 7.4 percent to $91.90 in extended trading.
The company now expects 2019 adjusted profit between $10.20 per share and $10.30 per share, down from its previous forecast of $10.30 per share to $10.40 per 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," Chief Executive Officer Emanuel Chirico said.
He said volatility in foreign exchange rates is expected to pressure its earnings per share by an incremental 10 cents.
PVH's first-quarter sales missed Wall Street estimates, as its Calvin Klein business recorded flat sales.
Revenue rose 1.8% to $2.36 billion (1.87 billion pounds), but fell short of analysts' estimate of $2.37 billion, according to Refinitiv IBES data.
Excluding items, the company earned $2.46 per share, a cent above the average estimate.
Net income attributable to the company fell to $82 million, or $1.08 per share, in the three months ended May 5, from $179.4 million, or $2.29 per share, a year earlier.
(Reporting by Nivedita Balu in Bengaluru; Editing by Shailesh Kuber)
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