Second quarter revenue at PVH of 2.074 billion dollars decreased 6 percent or 5 percent on a constant currency basis, including a 3 percent decline resulting from the sale of the Heritage Brands women’s intimates business.

The company’s EBIT on a GAAP basis increased to 174 million dollars, while EBIT on a non-GAAP basis was 189 million dollars, earnings per share on GAAP basis rose to 2.80 dollars and on a non-GAAP basis rose to 3.01 dollars surpassing the analyst estimate of 2.29 dollars.

Commenting on the second quarter results, Stefan Larsson, PVH CEO said in a statement: “We delivered on our top and bottom-line commitments and beat our earnings guidance for the second quarter, led by our disciplined execution of the PVH+ Plan. Looking ahead, as we navigate an increasingly challenging global macroeconomic backdrop, we remain relentlessly focused on delivering brand-accretive, long-term growth.”

Highlights of PVH’s Q2 financial results

The company’s direct-to-consumer revenue decreased 5 percent or 3 percent on a constant currency basis. Revenue in the company’s owned and operated stores decreased 4 percent or 3 percent on a constant currency basis. Revenue in the company’s owned and operated digital commerce business declined 6 percent or 5 percent on a constant currency basis.

Wholesale revenue for the quarter decreased 9 percent or 8 percent on a constant currency basis, primarily due to a 7 percent reduction resulting from the sale of the Heritage Brands women's intimates business.

The company said Tommy Hilfiger revenue decreased 4 percent or 3 percent on a constant currency basis, international revenue decreased 6 percent or 5 percent on a constant currency basis, while North America revenue increased 1 percent.

Calvin Klein revenue decreased 1 percent and remained flat on a constant currency basis, while international revenue decreased 2 percent and North America revenue increased 1 percent.

Heritage Brands revenue decreased 60 percent, which included a 56 percent decrease resulting from the sale of the Heritage Brands women's intimates business.

PVH raises earnings outlook

Reaffirming a projected decrease of 6 percent to 7 percent for the full year, PVH said operating margin on a GAAP basis is projected to be approximately 9.8 percent and flat on a non-GAAP basis and EPS on a GAAP basis is expected to be in a range of 11.20 dollars to 11.45 dollars, while non-GAAP range is 11.55 dollars to 11.80 dollars.

For the third q, the company’s revenue is projected to decrease 6 percent to 7 percent or decrease 7 percent to 8 percent, EPS on a GAAP basis to be approximately 2.30 dollars and approximately 2.50 dollars on a non-GAAP basis.