Investing.com – Shares in fashion group PVH (NYSE:PVH), the owner of brands such as Calvin Klein and Tommy Hilfiger, soared more than 8% in Wednesday’s premarket as it raised its annual revenue guidance and announced a buyback after a rebound in sales.
Revenue through digital channels grew around 35% and sales in international markets, primarily driven by Europe, significantly exceeded 2019 pre-pandemic levels.
Chief Executive Officer Stefan Larsson said recovery had been faster than expected in both of its main brands. Traffic in stores has improved due to reopening and reduced restrictions, he said.
The company had lowered its guidance in June, adjusting for some brand disposals. These included IZOD, Van Heusen, ARROW and Geoffrey Beene under its Heritage Brands business.
The company said it will use $200 million from the sale proceeds to repurchase shares.
The company now projects annual revenue to increase 26%-28%, having cut its guidance to a range of 22%-24% earlier this year.
On an adjusted basis, earnings per share of $8.50 are expected, compared to the previous forecast of $6.50. Third-quarter revenue is projected to increase 11%-13%.
Second-quarter revenue increased 46% to $2.31 billion and adjusted EPS was $2.72, both beating estimates.