PVH post profit but cuts outlook, and shares skid

NEW YORK (AP) -- PVH, the company behind the Calvin Klein and Tommy Hilfiger brands, cut its profit forecast on Wednesday citing the shaky retail environment.

The company said global economic conditions hurt its results during the first quarter and led to an increase in discounts, which hurt its profit margins. It also said the harsh winter weather put "significant pressure" on its sales in North America during the first quarter. It stepped up promotional activity in its Calvin Klein business because shoppers were reluctant to shop at its stores during the winter.

The company's shares slid $7/94, or 6 percent, to $122.74 in aftermarket trading.

For the full year PVH now expects to earn between $7.30 and $7.40 per share, down from its previous estimate of $7.40 to $7.50 per share. It still forecasts revenue of about $8.5 billion.

Analysts are projecting net income of $7.50 per share and $8.5 billion in revenue on average.

PVH Corp. reported net income of $35.3 million, or 42 cents per share, in its first quarter that ended May 4. A year ago the company posted a loss of $10.3 million, or 13 cents per share, after it bought competitor Warnaco Group for $2.9 billion. The deal strengthened its control of the Calvin Klein brand. Excluding one-time costs, PVH said its profit fell to $1.47 per share from $1.91 per share. Revenue grew 3 percent, to $1.96 billion from $1.91 billion.

FactSet says analysts expected net income of $1.49 per share and $1.98 billion in revenue.

PVH is one of the biggest apparel companies in the world, and in addition to owning the Calvin Klein and Tommy Hilfiger brands, it licenses products for brands including Speedo, Kenneth Cole New York and Sean John.