US: Acquisition costs push PVH Corp to Q4 loss
- Q4 net loss of US$37.5m
- Gross margin narrows to 52.1%
- Sales increase 25%
In the three months ended 2 February, losses amounted to US$37.5m, compared to a year-earlier profit of $80.7m. Gross margin narrowed to 52.1% from 53.8% in the year ago period.
Revenue, however, increased 25% to $2.05bn, compared with $1.64bn a year earlier, principally driven by the addition of around $479m of sales related to the acquired Warnaco businesses, in addition to sales of $18m from the firm's Tommy Hilfiger and pre-acquisition Calvin Klein businesses.
CEO Emanuel Chirico said: "We are pleased with our 2013 fourth quarter results, which exceeded our previous guidance for earnings per share, despite the difficult retail environment.
"While our newly acquired Calvin Klein jeans business, particularly in North America and Europe, struggled in 2013, we believe that our focused investments will drive future profitability."
For the first quarter, PVH said the "difficult macroeconomic environment" meant the company is being cautious on its guidance and has therefore forecast adjusted profit of $1.45 to $1.50 per share on sales of $2bn.
UBS analyst Michael Binetti says: "PVH's guidance for 2014 is comprised of revenue growth accelerating through the year. We believe orders for both big brands (Tommy and CK) accelerated for the fall - which should support PVH's outlook for accelerating corporate revenue growth through the year."
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