January 10, 2019 / 10:03 PM / 5 months ago

PVH raises profit forecast, unveils fixes for Calvin Klein

FILE PHOTO: Boards with Calvin Klein store logo are seen on a shopping center at the outlet village Belaya Dacha outside Moscow, Russia, April 23, 2016. REUTERS/Grigory Dukor

(Reuters) - Apparel maker PVH Corp (PVH.N) on Thursday raised its fourth-quarter adjusted profit forecast and said it would record a $120 million charge for restructuring its Calvin Klein unit.

PVH’s shares, which lost 32 percent of their value in 2018, rose 5.1 percent in extended trading.

Calvin Klein, PVH’s second-biggest segment in sales after Tommy Hilfiger, weighed on PVH’s results in the last quarter after underperformance of its relaunched Calvin Klein 205W39NYC collection.

Calvin Klein said it would rebrand the Calvin Klein 205W39NYC business and shut down its flagship Madison Avenue store this spring as part of the restructuring.

The unit will also consolidate operation of its men’s Calvin Klein Sportswear and Calvin Klein Jeans businesses.

New York-based PVH said it expects to incur the pretax costs related to the Calvin Klein restructuring over the next 12 months.

PVH now expects adjusted profit in the current quarter to be at least $1.75 per share, 15 cents above the high end of its prior guidance range.

The company also forecast full-year adjusted profit of at least $9.50 per share, higher than its previous forecast of $9.33 to $9.35.

PVH said both the forecasts exclude costs related to the restructuring of Calvin Klein.

Reporting by Soundarya J in Bengaluru; Editing by Maju Samuel

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