US: Hilfiger costs push Phillips-Van Heusen to Q1 loss
- Swings to Q1 loss of $27.6m
- Exceeds guidance excluding Hilfiger costs
- Revenues rose 11% to $619.0m
Costs related to its recent acquisition of luxury label Tommy Hilfiger have pushed Phillips-Van Heusen Corporation to a first quarter loss, but the apparel maker says it remains excited about the growth prospects of the combined company.
"The Tommy Hilfiger business is performing well both in North America and internationally and similarly in the wholesale and retail components," said chairman and CEO Emanuel Chirico.
"We are acting quickly to align the two organisations and are focused on realising the opportunities we envisioned when we embarked on this transaction."
For the three months to 2 May, the company posted a loss of $27.6m or $0.53 per share, compared with a profit of $24.7m or $0.48 per share a year earlier.
Excluding the $104m in costs for the Tommy Hilfiger deal which completed earlier this month, the company beat guidance with earnings of $0.83 per share.
Phillips-Van Heusen Corp, whose brands include Calvin Klein and Izod, said revenues rose 11% to $619.0m.
Wholesale and retail revenues rose 11%, with a 12% rise in outlet retail same-store sales.
Global growth of the Calvin Klein brand's footwear, women's sportswear and dresses helped lift royalty revenue by 10% on a constant currency basis.
"The positive trends of the last several quarters have continued and we have seen strong gross margin recovery in our wholesale and retail businesses against last year's difficult first quarter," Chirico noted.
Looking ahead, Phillips-Van Heusen expects a second quarter loss of $1.25 to $1.23 per share and revenues of $1.08bn to $1.10bn, including costs and sales from the Tommy Hilfiger acquisition.
For the full-year, it sees earnings of $0.34 to $0.44 per share and revenues in the range of $4.35bn to $4.40bn.
US swimwear firm Warnaco Group's decision to snap up a number of Calvin Klein retail operations in Italy should come as no surprise given the company's global strategy of late. ...
The Tommy Hilfiger Group is setting up a new division to take control of the Arrow brand in Europe and manage the European launch of other brands owned by parent Phillips-Van Heusen....
Premium retailer Tommy Hilfiger Europe has selected electronic invoicing software to reduce the cost of cross-border and domestic trading....
Lifestyle brand Tommy Hilfiger has unveiled plans to open its largest flagship store in Japan and Asia, in a key move that will support its retail business in the region....
European private equity firm Silverfleet Capital has bought Schneider Versand Holding GmbH, a leading German catalogue and on-line retailer selling fashion, lifestyle and promotional products such as ...
A group of US apparel and footwear makers and importers has written to the Cambodian government to express its concerns at reports of violence and intimidation against garment workers and trade union ...
Apparel maker Phillips-Van Heusen Corporation is relocating and expanding its distribution operation in a move that will enable it to meet the needs of its growing retail and wholesale businesses....
Taking a look at the week ahead for the footwear and apparel industry, here is news editor Joe Ayling's snapshot of just-style's latest news and insights agenda. ...
- Improved supplier capabilities benefit Next
- China and Vietnam lead US apparel imports in July
- THE FLANARANT: Understand win-win or lose out
- Next H1: What the analysts say
- US apparel retailers' August 2014 sales roundup
- Hanesbrands axes Costa Rican jobs in Vietnam move
- Brandix selects first "game-changing" innovations
- Bagir to invest in Ethiopia as H1 loss deepens
- Apparel fuels global manufacturing downturn
- US cotton production set to decline
- Wool in the 21st Century: new prospects for a familiar fibre
- Apparel Market in China to 2018 - Market Size, Trends, and Forecasts
- Global market review of denim and jeanswear – forecasts to 2020
- Global Database of the Top 1000 Apparel Producers - Company Names, Financial Performance, Key Executives, and Contact Details
- Global Database of the Top 1000 Cut and Sew Apparel Producers - Company Names, Financial Performance, Key Executives, and Contact Details