PVH Corp. (NYSE:PVH) the parent of Izod and Speedo, reported earnings excluding non-recurring items were basically flat in the first quarter but ahead of internal guidance.

The company, whose primary businesses are Calvin Klein and Tommy Hilfiger, earned $122.8 million, or $1.50 a share, in the period against $124.7 million, also $1.50, a year ago. Results exceeded previous guidance of $1.40 to $1.45. On a currency-neutral basis, earnings grew 33 percent year over year.

Adjusted earnings excludes a number of non-recurring items related to the integration of last year’s acquisition of Warnaco, which included Speedo as well as Calvin Klein’s jeans and intimates businesses. It also excludes a number of restructuring charges tied to licenses and Calvin Klein, gains tied to equity investments and non-recurring financing items. Net earnings reached $231.6 million, or $2.83 a share, against $114.1 million, or $1.37, a year ago.

Net sales inched up 2 percent to $1.92 billion and expanded 3 percent on a currency-neutral basis.

Among its segments, revenue in the Calvin Klein business increased 13 percent on a currency-neutral basis to $722.7 million. Revenue at Tommy Hilfiger increased 4 percent on a currency-neutral basis to $791.8 million.

Revenue in the heritage brands business decreased 12 percent on a currency-neutral basis to $403.3 million, driven by the ongoing rationalization of the division, including the exit from the Izod retail business last fall and the discontinuation of several licensed product lines in the dress furnishings business. The declines were partly offset by a 12-percent increase in comparable-store sales in the Van Heusen business. The heritage brands segment also includes the Speedo North America and the Caribbean license as well as Arrow, Warner’s, Olga and a number of licensed dress shirts.

Looking ahead, PVH raised its full year 2016 EPS guidance to $6.45 to $6.55 on a non-GAAP or adjusted basis, which includes a negative impact of $1.55 per share related to foreign currency exchange rates. Previous guidance was $6.30 to $6.50, which included a $1.60 per share negative impact related to foreign currency exchange rates. On a currency-neutral basis, earnings are expected to rise 13 percent to 15 percent.

Photo Courtesy Speedo