PVH said the improved outlook reflects the power of its designer lifestyle brands

PVH said the improved outlook reflects the power of its designer lifestyle brands

Apparel giant PVH Corp has lifted its full-year guidance to the higher end of its previous outlook thanks to the strength of its Calvin Klein and Tommy Hilfiger brands. 

The fashion group said it expects earnings per share, on a non-GAAP basis for the full year 2015, to be at or above US$7.00 – the top end of the guidance range it gave last month of $6.90 to $7.00.

CEO Emanuel Chirico said the improved outlook reflects the power of its designer lifestyle brands, Calvin Klein and Tommy Hilfiger, which helped it successfully navigate the difficult macroeconomic environment, particularly the continued headwinds from the strengthening US dollar.

"Specifically, during the fourth quarter, we experienced continued strength in our global Calvin Klein business and Tommy Hilfiger International business. We were able to post stronger results despite a difficult US retail environment, which was negatively impacted by unseasonably warm weather and decreased international tourist traffic and spending, particularly for our Tommy Hilfiger brand," he added. 

In its third-quarter, PVH posted a drop in earnings of 1.7% to $221.9m and a 3% decline in sales to $2.16bn.

Separately, PVH said its Tommy Hilfiger Licensing unit has entered into a multi-year licensing deal with G-III Apparel Group for the design, production and distribution of Tommy Hilfiger women's wear collections in the US and Canada.

The deal includes PVH's current women's sportswear business and additional categories to be licensed, including suit separates, performance and denim. These categories are in addition to dresses, men's and women's outerwear and luggage, which are already licensed to G-III by Tommy Hilfiger. Macy's will continue to be the principal retailer of Tommy Hilfiger in the US and men's and women's sportswear will continue to be a Macy's exclusive offering.

The partnership is designed to support PVH's strategy to drive the long-term potential of the Tommy Hilfiger women's wear business, specifically through an increased focus on maximising its North America opportunity. The agreement has an initial term of five years and a renewal term of four years.