Investing.com -- Shares in PVH Corp (NYSE:PVH) surged nearly 4% in after-hours trading after one of the world's largest apparel companies posted stronger than expected quarterly earnings on Monday.
The New York-based clothing company, which owns famed brands such as Calvin Klein, Tommy Hilfiger and Van Heusen posted GAAP earnings per share of $1.37, far above quarterly EPS of 0.42 during the same period in 2014. PVH earned Non-GAAP EPS of $1.50, but saw its earnings dented by a 0.27 EPS negative impact from foreign currency exchange rates.
“We are very pleased with our first quarter results, which exceeded our first quarter guidance, driven by the strength of our Calvin Klein business. Strong underlying fundamentals in our international Calvin Klein and Tommy Hilfiger businesses was partially offset by softness in our U.S. Calvin Klein and Tommy Hilfiger businesses, where a strong U.S. dollar negatively impacted international tourist spending," PVH Corp. CEO Emanuel Chirico said in a statement.
For the remainder of the year, PVH Corp. is raising its forward guidance on a Non-GAAP basis from a range of $6.75-$6.90 to $6.85-$6.95. PVH anticipates that foreign currency exchange rates will have a negative impact of $1.25 EPS for the rest of the year.
“Looking ahead to the remainder of 2015, we are increasing our earnings guidance for the year, while continuing to take a prudent approach to planning our business, as foreign currency and global consumer spending remain unpredictable and volatile," Chirico added. "We believe that our proven business model is well-positioned to navigate through this environment and we are implementing local initiatives to drive traffic and sales, while carefully managing our inventories and looking for continued efficiencies across our business.”
PVH also announced the approval of a $500 stock repurchasing program on Monday.
"This program underscores our commitment to returning capital to stockholders. We also believe we will continue to have the financial flexibility, as we continue to pay down debt, to strategically invest in our business, to take more direct ownership in certain licensed Calvin Klein and Tommy Hilfiger businesses and for other strategic acquisitions as they arise in the future," Chirico added. "We remain committed to maximizing the potential of our businesses and believe the strength of our brands, together with the strategic investments we have made in our businesses, will position us to deliver long-term global growth and stockholder value."
Shares in PVH Corp. soared 4.02 or 3.84% in after-hours to 108.70.