• Q4 profit of $51.5m versus $37.6m loss
  • Sales climb 1% to $1.97bn 
  • CEO “pleased” with performance 

US apparel giant PVH Corp has said it is “pleased” with its fourth-quarter performance which saw it swing to a net profit, despite the challenging market environment and foreign currency headwinds.

The company's net income totalled US$51.5m for the three months to 1 February, compared to a loss of $37.6m in the same period of the prior year.

Net sales climbed 1% to $1.97bn from $1.95bn last year. Calvin Klein and Tommy Hilfiger each saw sales rise 2%, while Heritage Brands reported a 3% fall.

Cowen analyst John Kernan described the organic trends at Calvin Klein and Tommy Hilfiger as “healthy”.

While PVH chairman and CEO Emanuel Chirico said: “Overall, we are pleased with our fourth-quarter results, which matched the top end of our earnings guidance, despite the highly challenging market environment and foreign currency headwinds.”

During the full year, net income increased more than threefold to $438.9m from $143.4m the prior year, while net sales edged up 0.5% to $7.85bn from $7.81bn a year ago.

But for fiscal 2015, PVH expects its earnings to be negatively impacted versus the prior year by foreign currency exchange and volatility in the macroeconomic environment. Adjusted earnings per share are expected to range from $6.75-$6.90, while revenue is forecast to fall 4%.

“Looking ahead to 2015, we are taking a prudent approach to planning our business,” added Chirico. “The strength of the US dollar relative to other major currencies in which we conduct business and the volatile global macroeconomic environment is expected to have a significant negative impact on our 2015 results.

"Nonetheless, we expect that our global lifestyle brands, Calvin Klein and Tommy Hilfiger, will continue to demonstrate strong underlying performance globally.”