PVH posts growth in third quarter
PVH Corp. reported third quarter revenue of $2.25 billion, up 38% on the same period the previous year. Sales at the group were bolstered by the February acquisition of Warnaco Group, which licenses Calvin Klein underwear and jeans. The Warnaco business contributed $503 million in sales for the group’s third fiscal quarter.
Brands Tommy Hilfiger and Calvin Klein posted revenue increases 10% and 19% respectively, with the group’s heritage division reporting a 6% jump in sales.
Revenue in the Calvin Klein business increased $480 million to $800 million from $320 million in the prior year’s third quarter, showing progressions in the North American and Chinese markets, but a decline in Europe. The Tommy Hilfiger business posted revenue of $921 million, a 10% increase as compared to $834 million in the prior year’s third quarter. The brand performed well in its North American and European markets but increases were partially offset by a decline in Japan.
Total revenue for the Heritage Brands businesses increased 10% to $539 million, as compared to $490 million in the prior year’s third quarter. The newly acquired Speedo, Warner’s and Olga businesses contributed $78 million, while revenue for the pre-acquisition Heritage Brands businesses decreased 6%. The group cited weak performance at Bass, and a revenue decrease resulting from the 2012 exit from the Izod women’s wholesale sportswear business. The Bass business was sold effective November 4, 2013.
Commenting on these results, Emanuel Chirico, Chairman and Chief Executive Officer, noted: “Despite the difficult market environment, our third quarter results exceeded our expectations, driven by the strength of our Calvin Klein and Tommy Hilfiger businesses. In the third quarter, we continued to be pleased with the performance of our newly acquired Calvin Klein businesses in Asia and Brazil, as well as our global underwear business. However, our Calvin Klein jeans business, particularly in North America and Europe, continues to underperform and be an area of management focus, investment and repositioning.”
Mr. Chirico concluded: “Over the last nine months, we have made significant progress in our efforts to integrate the Warnaco businesses and to build a solid foundation for our future. Investments in the newly acquired businesses, which will continue into 2014, will further focus on enhancing the existing operating infrastructure; leveraging the investments in our people, including filling a significant number of key open positions; restructuring our customer distribution in various regions; upgrading the quality and design of the Calvin Klein jeans product; and elevating and enhancing the retail presentation of the Calvin Klein businesses. We
for the quarter ended Nov. 3, PVH reported a profit of $196.7 million and has projected an adjusted profit of $2.2 billion in revenue for its final quarter.
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