US: PVH Q1 profit surges on new acquisitions
- Underlying net income up 59% to US$155.6m
- Revenue up 36% to $1.94bn
- Warnaco, Tommy Hilfiger principal growth drivers
The US company said the former Warnaco business was responsible for $487m of the near-$2bn revenue registered in the three months to 5 May, with Tommy Hilfiger contributing a further $41m.
Calvin Klein revenues were $638m, up from $262m last year thanks to strong performances from the brand’s jeans and underwear businesses in China and Brazil, which were previously handled by Warnaco.
North America retail comparable store sales for Calvin Klein were up 4%, but international comps fell 5%.
Tommy Hilfiger revenues rose 5% to $811m, driven by a 14% revenue increase in North America, where comps were up 5%, offset by flat sales from the brand’s international business.
PVH’s Heritage Brands posted 24% revenue growth to $491m, of which $126m was supplied by Warnaco’s Speedo swimwear and its Warner’s and Olga women’s intimate apparel businesses.
“Our results demonstrated the strength of the Calvin Klein and Tommy Hilfiger businesses, which both continue to exhibit strong global growth, despite the macro-environment and unseasonably cold weather that negatively impacted sales of spring product in North America and Europe,” said Emanuel Chirico, PVH chairman and CEO.
“We were also pleased to see the strong operating improvements in our pre-existing Heritage Brands wholesale business, primarily in the sportswear division, and believe the Speedo, Warner’s and Olga brands are proving to be strategic complements to our pre-existing Heritage Brands portfolio.”
PVH maintained its full-year guidance of revenues of $8.2bn and underlying earnings per share of $7.00.
This report provides an update of business news in the following categories: acquisitions, divestments and mergers; company strategies; corporate social responsibility (CSR); financial results; intern...
Some 190 companies have now signed the Accord on Fire and Building Safety in Bangladesh following the collapse of the Rana Plaza factory building in Dhaka, which killed more than 1,100 people in 2013....
This report provides information, analysis and valuable insight on developments relating to the global apparel industry in the following categories: acquisitions, divestments and mergers; corporate so...
This report provides an update of business news in the following categories: acquisitions, divestments and mergers; company rebranding; company restructuring; corporate social responsibility (CSR); fi...
PVH Corp says it is on track with the integration of the Warnaco business it bought earlier this year, despite the fact acquisition costs pushed the apparel giant to a second-quarter loss....
This report analyzes the worldwide markets for Hats, Caps, And Millinery in US$ Million. The report provides separate comprehensive analytics for the US, Canada, Japan, Europe, Asia-Pacific, Latin Ame...
- Low labour cost countries linked to highest risks
- Why should brands care about China cotton?
- China cotton: implications and opportunities
- COMMENT: Skills or new technology?
- UK reshoring hub hit by sweatshop claims
- South Africa to grow grass for recyclable textiles
- 30% of Adidas cotton from sustainable sources
- Activewear driving US apparel spend
- Benetton to embark on living wage roadmap
- Sri Lanka and Bangladesh FTA talks underway
- Myanmar's Garment Sector - Opportunities & Challenges in 2015
- Outdoor performance apparel: peaks, valleys, and green fields
- Global market review of swimwear - forecasts to 2019
- Management briefing: Outlook 2015: Apparel industry issues in the year ahead
- Apparel Retail: Top 5 Emerging Markets Industry Guide