Dallas, Texas 06/03/2015 (Financialstrend) – Buoyed by the impressive showing in the first quarter PVH Corp (NYSE:PVH) CEO, Emanuel Chirico, believes they are in a position to carry out acquisitions. Earnings per share for the first quarter came in at $1.50 a share against analysts’ estimates of $1.38 a share. The company’s earnings were mostly impacted by improved operations in North America more so on the wholesale front.
Points of Concern
However, the global apparel company continues to face major headwinds due to a decline in tourist traffic attributed to currency headwinds. PVH Corp (NYSE:PVH) expects the level of volatility in the currency fluctuation and consumer environment to remain high for the better part of the year. Despite the concerns, Chirico remains confident of the company’s prospects especially on improving fundamentals on the Calvin Klein and Tommy Hilfiger businesses.
PVH Corp (NYSE:PVH) is on course to pay down its debt according to the CEO as it also strives to invest more in growing the businesses. Taking direct ownership of certain licensed Calvin Klein and Tommy Hilfiger businesses remains high on the agenda according to the executive. The sentiment makes a lot of sense as the two brands account for almost 85% of the company’s total operating profit.
Full Year Guidance
Despite the negative headwinds inflicted by a strengthened dollar, Calvin Klein brand contributed a great deal of the total first quarter profit. The brand growing momentum has mostly been impacted by the celebrity selling power of super models Kendall Jenner and Lara Stone. The improving sentiments and fundamentals have seen PVH Corp (NYSE:PVH) raise its full-year guidance to$6.95 up from $6.85 a share.
Implementing local initiatives to counter the slow growth coming from tourist sector also remains high on the agenda as PVH Corp (NYSE:PVH) looks to reinvigorate sales and traffic. Shareholders value is also being given a key consideration the company having announced a $500 million stock repurchase program.
