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.
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