• Q3 net profit up 12.8% to US$225.7m
  • Revenue up 2% to $2.23bn
  • Sales impacted by unfavourable currency rates
Calvin Klein saw revenues rise by 2%

Calvin Klein saw revenues rise by 2%

Apparel giant PVH Corp recorded a double-digit increase in third quarter net profit, despite revenues being impacted by the weak euro.

Revenues were reduced by an estimated $30m in the the quarter, mainly due to euro/dollar conversion rates, but sales still rose 2% in the period. This broke down into a 2% revenue increase at Calvin Klein, a 1% rise for Tommy Hilfiger, and a 3% increase for the company’s Heritage Brands.

Analyst UBS said trends for Calvin Klein in the period had been better than expected, but described top-line trends for Tommy Hilfiger as “disappointing”.

The foreign currency issue led PVH to revise its full-year guidance downwards, projecting earnings per share of $7.25-7.30, compared to its previous guidance of $7.30-7.40, with revenues forecast at about $8.3bn.

“Despite the anticipated difficult macroeconomic environment, we are very pleased with our third quarter performance, driven by the strength of our Tommy Hilfiger business and an improvement in our Calvin Klein business,” said Emanuel Chirico, company chairman and CEO.

“During the quarter, we saw our global strategic initiatives in our Calvin Klein jeans business begin to take hold, with improved performance in our newly installed shop environments and store refits.

“Additionally, our acquisition integration efforts remain on track, with the last phase to be completed during 2015.”