US: PVH Corp Q3 profit grows on Warnaco acquisition
- Q3 profit up 17.3% to $196.6m
- Revenue jumped 38% to $2.26bn
- Holiday season to be "competitive"
Revenue grew 10% at Tommy Hilfiger in the third quarter
Apparel giant PVH Corp has recorded a double-digit increase in third-quarter profit, but warned of a competitive and highly promotional holiday season.
Revenue jumped 38% to $2.26bn from $1.5bn in the prior year, driven by the addition of $503m of revenue related to the Warnaco businesses it acquired earlier this year.
Revenue grew 10% at Tommy Hilfiger to $921m and 19% in the pre-acquisition Calvin Klein businesses. The Heritage Brands business, meanwhile, saw revenue fall 6% to $539m during the period.
Chairman and CEO Emanuel Chirico said: "Despite the difficult market environment, our third quarter results exceeded our expectations, driven by the strength of our Calvin Klein and Tommy Hilfiger businesses.
"In the third quarter, we continued to be pleased with the performance of our newly acquired Calvin Klein businesses in Asia and Brazil, as well as our global underwear business. However, our Calvin Klein jeans business, particularly in North America and Europe, continues to underperform and be an area of management focus, investment and repositioning."
Chirico warned: "Despite our better than expected third-quarter results, we believe the current holiday season will be very competitive and highly promotional."
The company said it has made "significant" progress in its efforts to integrate the Warnaco businesses. Investments in the newly acquired businesses will continue into next year, Chirico said.
They will further focus on enhancing the existing operating infrastructure; leveraging the investments in its people; restructuring its customer distribution in various regions; upgrading the quality and design of the Calvin Klein jeans product; and elevating and enhancing the retail presentation of the Calvin Klein businesses.
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