Calvin Klein campaign featuring the Kardashian-Jenner sisters | Source: Calvin Klein
NEW YORK, United States — Apparel maker PVH Corp missed Wall Street’s estimates for quarterly revenue for the first time in at least two years due to weakness in its Calvin Klein business.
Shares of the company, which have lost a fifth of its value this year, fell 8 percent after-hours on Thursday.
The company said the softness in its Calvin Klein profile was due to poor response to its recently relaunched and rebranded Calvin Klein jeans.
The fashion line, in an attempt to connect with its young audience, roped in millennial-favorite influencers such as singer Justin Beiber and collaborated with Amazon to set up pop-up stores where shoppers can try their jeans and order them on the online retailer’s app.
“We are disappointed by the lack of return on our investments in our Calvin Klein 205W39NYC halo business and believe that some of the Calvin Klein Jeans relaunched product was too elevated and did not sell through as well as we planned,” said PVH’s chief executive Emanuel Chirico.
PVH said earnings, before taxes and interest, for Calvin Klein fell to $121 million, from $142 million a year earlier, mainly due to an increase in creative and marketing expenditures.
Excluding items, PVH earned $3.21 per share, topping the average estimate of $3.14, according to IBES data from Refinitiv.
Net income attributable to the New York-based company rose to $243.1 million, or $3.15 per share, in the quarter ended November 4, from $239.2 million, or $3.05 per share, a year earlier.
Total revenue rose 7 percent to $2.52 billion, but fell short of analysts’ estimate of $2.53 billion.
By Nivedita Balu; editors: Sriraj Kalluvila and Shailesh Kuber.