PVH Corp (NYSE:PVH), the owner of apparel brands such as Calvin Klein and Tommy Hilfiger, reported first quarter financial performance that fell short of the expectations of Wall Street analysts. As a result, the stock price of the retailer slumped, falling nearly 8% to $120.88 per share at the time of this writing, around 2:48 PM Eastern.
Financial results
During the first quarter, PVH Corp (NYSE:PVH) generated $1.47 per share in adjusted earnings on $1.96 billion in revenue. During the same period a year ago, the company posted $1.91 per share in adjusted earnings and 1.94 billion in revenue. Wall Street analysts expected the owner of Calvin Klein and Tommy Hilfiger brands to deliver $1.49 per share in adjusted earnings on $1.97 billion in revenue for the first quarter of this year.
According to PVH Corp (NYSE:PVH), its businesses in North America were negatively impacted by “unseasonably cold weather” across the region. The company’s GAAP revenue was lower on a non-GAAP basis by $30 million due to sales returns for certain wholesale customers in acquired business in Asia in connection with its initiative to reduce excess inventory levels.
PVH Corp full year outlook
PVH Corp (NYSE:PVH) estimated that its will be able to achieve adjusted earnings in the range of $7.30 to $7.40 per share for the full fiscal 2014. The company estimated that its revenue will be around $8.5 billion, excluding $176 million related to its Bass business.
In a statement, Emanuel Chirico, chairman and CEO of PVH Corp (NYSE:PVH), said, “Unfortunately, the challenging macroeconomic environment has continued into the second quarter, with heightened promotional activity across the North American retail landscape. As such, we believe our North American businesses will experience margin pressure in the second quarter and we have lowered our full year earnings per share guidance to reflect this.”
Chirico added that PVH Corp (NYSE:PVH) did not change its financial outlook for the second half of the year as the company expects a 20% increase in earnings per share for the quarter. He said its Calvin Klein and Tommy Hilfiger brands remain strong.
Furthermore, Chirico said, “We believe that the investments we make during 2014 and the financial flexibility achieved by our continued debt repayment will enable us to capitalize on growth opportunities over the long-term.”
Ciena stock rises on earnings beat
Separately, the stock price of Ciena Corporation (NYSE:CIEN), a networking communications equipment provider, surged more than 18% to $22.46 per share after the company reported better-than-expected earnings of 17 cents per share, compared with the 13 cents per share estimated by analysts.
The company also provided higher-than-expected revenue guidance in the range of $585 million to $615 million for the July quarter. Evercore Equity Research analysts Mark McKechnie and Zachary Ansel maintained their Outperform rating and $32 price target for shares of Ciena Corporation (NYSE:CIEN).
