: Calvin Klein parent PVH Corp.’s first quarter earnings surpass expectations, but inventories rise

Shares of PVH Corp. PVH dropped nearly 4% in the extended session Wednesday after the parent of Calvin Klein and other clothing brands reported first-quarter earnings above Wall Street expectations but may have spooked investors by reporting rising inventories. PVH earned $136 million, or $2.14 a share, in the quarter, compared with $133 million, or $1.94 a share, in the year-ago period. Adjusted for one-time items, the company earned $2.25 a share. Sales rose 2% to $2.16 billion and came in above guidance, the company said. FactSet consensus called for EPS of $1.94 on sales of $2.12 billion. Inventories rose 24%, however, year-on-year, thanks to combination of “abnormally” low inventory levels in the first quarter of 2022, early receipts of inventory, and higher product costs, the company said. PVH reaffirmed its full-year guidance of a revenue increase between 3% and 4%, and EPS of about $10. The stock ended the regular trading day down 3.3%.

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