CK's Parent Company PVH Group Sold Higher Than Expected In The Previous Quarter.

In August 28th, the PVH group, the parent company of American designer brand Calvin Klein (Calvin Klein), announced the key financial data in the second quarter of fiscal year 2019.

Thanks to the excellent performance of its brand Tommy Hilfiger (Tomi Figg) clothing business, PVH group's net sales in the second quarter increased 1.3% to 2 billion 360 million US dollars over the same period, higher than analysts' average forecast of $2 billion 330 million. In the second quarter, driven by the European market, the net sales of Tommy Hilfiger increased by 8% to $1 billion 100 million over the same period last year.

Despite the fact that PVH's sales performance in the second quarter was higher than expected, taking into account the tense trade relations between China and the United States and the continuous protests in Hongkong, PVH lowered its annual financial forecasts for the 2019 fiscal year. The net sales volume of the whole year increased by 1% over the previous year, lower than the previous 3%. According to GAAP (US general accounting standards), earnings per share were 7.95-8.05 dollars, lower than previously expected 9.05-9.15 dollars; according to Non-GAAP, earnings per share were 9.3-9.4 dollars, lower than previously expected 10.20-10.30 dollars.

In August 15, 2019, the US government announced that 10% tariffs were imposed on about 300 billion US dollars imported from China, and two batches were implemented in September 1, 2019 and December 15th. In response, China was forced to take counter measures. In August 23rd, China decided to levy tariffs on US $75 billion merchandise.

PVH chief executive Manny Chirico said in a conference call: "the US tariffs on Chinese goods will reduce the earnings per share of PVH by about 20 cents. The business in the second quarter of Greater China continued to slow down amid trade tensions between the two countries, the continuing protests in Hongkong and the strengthening of the US dollar. Hongkong protests have a huge impact on traffic, so there is still a lot of pressure on Hongkong's business in the second half of the year.

According to the conference call, in the second quarter, China's regional business performance was poor, passenger traffic was weak and sales of jeans business were lower than expected. PVH adopted a price reduction marketing strategy to reduce inventory.

In the first half of fiscal year 2019, PVH group's net sales amounted to US $4 billion 720 million, up from US $4 billion 650 million in the same period last year.

However, PVH still has confidence in the Chinese market. Manny Chirico said in a conference call: "we have always believed that with the continuous development of China's economy, the proportion of garment manufacturing in China will continue to decrease, so tariffs will only speed up the process. In addition, PVH is already in a favorable position in this environment. We will work closely with fabric suppliers around the world to strengthen the supply chain. "

After the announcement of the earnings report, the stock price of PVH closed up about 2% in August 28th, and the share price continued to rise in August 29th, and the share price rose by 6.19% to $76 per share as of the end of the day.

As of August 4, 2019, according to GAAP (US general accounting standards), the key financial data for the second quarter of PVH 2019 fiscal year are as follows:

Net sales increased by 1.3% to $2 billion 360 million over the same period last year.

Gross profit was $1 billion 288 million, down from $1 billion 297 million in the same period last year.

Net profit was $193 million, up from $165 million in the same period last year.

Diluted earnings per share were $2.58, up from $2.12 in the same period last year.

　 By brand:

Tommy Hilfiger: net sales amounted to US $1 billion 110 million, up from US $1 billion 30 million in the same period last year.

Net sales in North America were $413 million, down from $437 million a year ago.

International net sales amounted to US $697 million, up from US $592 million in the same period last year.

Calvin Klein: net sales amounted to US $873 million, down from US $925 million in the same period last year.

Net sales in North America were $409 million, down from $468 million a year ago.

International net sales amounted to US $465 million, up from US $458 million in the same period last year.

The group's traditional brands (including Van Heusen, Speedo, Warner 's, etc.): net sales amounted to $380 million, unchanged from the same period last year.