PVH Corp. (NYSE:PVH) Q3 2019 Earnings Conference Call - Final Transcript

Nov 26, 2019 • 09:00 am ET


PVH Corp. (NYSE:PVH) Q3 2019 Earnings Conference Call - Final Transcript


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Good day, and welcome to the PVH Third Quarter 2019 Earnings Call. Today's call is being recorded. At this time, I would like to turn the conference over to Dana Perlman. Please go ahead ma'am.

Dana Perlman

Thank you, operator. Good morning, everyone, and welcome to the PVH Corp Third Quarter 2019 Earnings Conference Call. This webcast and conference call is being recorded on behalf of PVH and consists of copyrighted material and may not be recorded, rebroadcast or otherwise transmitted without PVH's written permission. Your participation in the question-and-answer session constitutes your consent to having anything you say appear on any transcript or replay of this call.

The information being made available includes forward-looking statements that reflect PVH's view as of November 25th, 2019 of future events and financial performance. These statements are subject to risks and uncertainties, indicated in the Company's SEC filings and the safe harbor statement included in the press release that is the subject of this call. These risks and uncertainties include PVH's right to change its, strategies, objectives, expectations and intentions and its need to use significant cash flow to service its debt obligations. Therefore, the Company's future results of operations could differ materially from historical results or current expectations. PVH does not undertake any obligation to update publicly any forward-looking statement, including without limitation, any estimate regarding revenue or earnings.

Generally, the financial information and guidance provided is on a non-GAAP basis, as defined under SEC rules. Reconciliations to GAAP amounts are included in PVH's third quarter 2019 earnings release, which can be found on www.pvh.com and in the Company's current report on Form 8-K furnished to the SEC in connection with the release.

At this time, I am pleased to turn the conference over to Mr. Manny Chirico, Chairman and CEO of PVH.

Manny Chirico

Thank you, Dana. Good morning. Joining me on the call is Mike Shaffer, our Chief Operating Officer and Chief Financial Officer; Dana Perlman, our Treasurer and Senior Vice President of Business Development and Investor Relationship. Our President Stefan Larsson is traveling and visiting some of our international locations and he'll be joining us on our fourth quarter call.

I'm pleased to report that PVH posted strong third quarter results, especially in light of the challenging and volatile global backdrop. We reported earnings per share of $3.10, which exceeded the high end of our previous guidance by $0.10, despite the higher than planned interest and taxes of approximately $0.10 per share. This outperformance was principally driven by our European businesses and better than planned performance in our Asia-Pacific businesses.

Revenues rose 4% on a constant currency basis, which also exceeded our previous guidance. Although we are raising our annual earnings guidance for the year, we continue to take a conservative approach to planning the fourth quarter holiday season. Our sales and earnings guidance assumes a competitive and promotional macro holiday environment. And we expect continued headwinds from uncertainties surrounding trade and tariffs.

Before I go into the specific brand details, I'd like to