US fashion group Phillips-Van Heusen Corporation (PVH) has swung to a second quarter loss, after acquisition and integration costs linked with its newly acquired Tommy Hilfiger business.
The company said that its Calvin Klein business grew momentum during the quarter, with an increase in royalty revenue of 11%.
PVH’s newly acquired Tommy Hilfiger business generated $532.2m of revenue in the second quarter, $12.2m higher than the company’s previous guidance.
Emanuel Chirico, chairman and CEO of Phillips-Van Heusen, said: “We are extremely pleased with our second quarter results, which exceeded our expectations. We saw growth across each of our businesses in the quarter, and we are particularly excited about the exceptional performance of the Tommy Hilfiger business.
“We continued in the second quarter to see improvements in our gross margins over the prior year’s results for our Heritage Brands and Calvin Klein Apparel businesses, with the Calvin Klein Licensing segment also delivering a royalty revenue increase of 11% over the prior year.
“Our completion of the Tommy Hilfiger acquisition on May 6 brought together two premier companies and gives us substantial scale and strength across key geographic regions and multiple distribution channels. We have made significant progress in aligning the Tommy Hilfiger and Phillips-Van Heusen organisations.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData“Everything that we have seen to date has only served to make us more confident about the opportunities ahead. We expect to generate significant cash flow and to quickly de-lever our balance sheet, as evidenced by our voluntary debt repayment of $100 million in the second quarter, well in advance of our initial required repayment, and our intention to repay another $300m at the end of this year.”
Click here to view the company’s full second quarter results.
