US: PVH Corp lifts FY outlook as Q3 profit jumps 12.4%
- Q3 profit rose 12.4% to $112.2m
- Revenue climbed 9% to $1.65bn
- Lifts FY forecast for earnings of $5.23 to $5.25 per share
"The Tommy Hilfiger and Calvin Klein businesses represent approximately three quarters of our overall revenues and their strong global performance has more than offset some of the challenges we have been facing with certain of our more moderate heritage businesses," noted chairman and CEO Emanuel Chirico.
The company said net income in the three months to 30 October rose to $112.2m or $1.54 per share, from $99.8m or $1.39 per share in the same period last year. Excluding one-time costs, including the buyout of the Tommy Hilfiger license in India, earnings rose to $1.89 per share.
Revenue climbed 9% to $1.65bn, helped by gains of $118.2m in the Tommy Hilfiger business and an increase of $28.7m at Calvin Klein. This was partially offset by a decline of $9.2m in the Heritage Brands.
Total revenue for Calvin Klein exceeded the company's guidance, rising 11% over last year to $301.2m - including growth of 12% in retail same-store sales and "equally strong" performance at wholesale. Royalty revenue also rose 8%.
Gains were seen across most product categories and regions, PVH said, with underwear, outerwear and women's sportswear singled out along with "outstanding growth" in South America and Asia. This was offset, in part, by weakness in the domestic jeanswear business.
Earnings before interest and taxes for the Calvin Klein business rose 13% to $85.7m in the quarter, up from $75.6m a year ago. Within the Calvin Klein apparel business, gross margin rates were down slightly, as higher product costs were partially mitigated by increases in selling prices.
The Tommy Hilfiger business, meanwhile, booked a 17% rise in revenue, helped by double digit growth in the European wholesale division, and 15% same-store sales growth in North America and 5% in Europe. Earnings before interest and taxes were up 46% to $90.5m.
In the Heritage Brands business, total revenue fell 2% to $526.3m, with a 4% rise in dress furnishings more than offset by a 7% drop in the sportswear division, largely due to underperformance at Izod and the soon-to-be discontinued Timberland division. Same-store sales were flat during the quarter.
Looking ahead the company, formerly known as Phillips-Van Heusen Corp, lifted its full-year forecast for earnings of $5.23 to $5.25 per share - up from the high end of earlier guidance of $5.12 per share share. It also sees full-year revenues rising 26% on 2010 to between $5.825bn and $5.845bn.
"Given the current momentum of our business, including a strong Thanksgiving weekend, and despite the uncertain global economic and market conditions, we believe we are well-positioned for another solid holiday season," Chirico added.
Strong global demand for its Calvin Klein and Tommy Hilfiger brands has helped PVH Corp to a 61% surge in first quarter earnings - and prompted the New York based clothing firm to raise its full-year ...
Randa Accessories Leather Goods has completed its acquisition of Swank, a designer and marketer of men's and women's belts, and men's leather accessories, jewelery and suspenders. ...
L Capital Asia has appointed former Tommy Hilfiger executive Uday Mehra as managing director of the LVMH backed Asian private equity fund....
Top stories on just-style last week included the numbers of retailers collapsing into administration increased by 15%, JCPenney cutting 600 jobs at its headquarters and 48 apparel brands and retailers...
Some 48 apparel brands and retailers including H&M, Nike, Wal-Mart, Levi's, Adidas, Gap and Marks & Spencer have been accused of purchasing clothing from suppliers who illegally discharge polluted wat...
One of the largest global apparel companies with brands including Calvin Klein, Tommy Hilfiger, Van Heusen, Izod, Arrow and Bass, PVH Corp is to evaluate the use of the new Crailar fibre in its dress ...
Francisco Costa, creative director for Calvin Klein, is for the first time designing a lower-priced limited edition dress collection that will be available in Macy's stores....
Seamless apparel specialist Tefron has today (30 March) posted a profit in its fourth-quarter, on the back of increased sales....
- DENIM DAYS: Jeans innovation bursting at the seams
- How will TPP emerge from fast-track trade bill?
- Adidas pushing self-governance for suppliers
- Rana Plaza two years on: Challenges and concerns
- 3D printing gears up for fashion industry change
- Under Armour hailed "next global athletic company"
- Myanmar garment workers strike deal
- Orta and Garmon launch denim chemical screening
- China textile and garment firms eyeing Morocco?
- Gap’s woes “not so easy to fix”