The transaction is expected to close in the third quarter of 2021 and is subject to customary closing conditions, including regulatory approval. The company intends to use the net proceeds from the transaction to repurchase shares of its common stock, it said in a press release.
The company also announced it intends to reinstate the dividend on its common stock.
As a result of the transaction, the company now projects that revenue for the full year 2021 will increase 22 per cent to 24 per cent (increase 19 per cent to 21 per cent on a constant currency basis) as compared to 2020. Its prior guidance, which included the full year revenue attributable to the assets being sold, was a projected increase in full year 2021 revenue of 24 per cent to 26 per cent (increase of 21 per cent to 23 per cent on a constant currency basis) as compared to 2020.
The company reiterates its guidance for the second quarter of 2021 of an increase of 34 per cent to 36 per cent (increase of 29 per cent to 31 per cent on a constant currency basis) compared to the prior year period.
PVH Corp is now projecting earnings per share on a GAAP basis for the full year 2021 of approximately $6.60.
While the company expects the transaction to be slightly dilutive to its 2021 earnings per share on a non-GAAP basis, it reiterates its earnings per share on a non-GAAP basis guidance of approximately $6.50 for the full year 2021 and $1.15 to $1.18 for the second quarter of 2021.
Fibre2Fashion News Desk (KD)