That was the forecast for 2014 provided by Emanuel Chirico, chairman and chief executive officer of PVH Corp., as the company reported fourth-quarter and full-year results that generally exceeded the group’s and analysts’ expectations. However, PVH provided guidance for the year that fell below Wall Street’s estimates.
In 2014, Chirico expects a year “of two stories,” with its investments in Warnaco Group, acquired last year, “and the continuing difficult macroeconomic environment” limiting upside potential in the first six months.
The second half of the year will be the first to fully reflect its investments in the Calvin Klein jeans and underwear businesses acquired as part of Warnaco and will mark “the first season of product from our newly established design and sourcing teams and presented in an enhanced retail presentation,” the ceo said.
He noted that, while the Calvin Klein jeans business “struggled in 2013” in North America and Europe, results for the newly acquired businesses, including underwear, were good in Asia and Brazil and he was optimistic about the profit potential in the tougher markets. PVH expects adjusted earnings of between $1.45 and $1.50 a diluted share in the first quarter and between $7.40 and $7.50 for the year, below the respective analysts’ consensus estimates of $1.70 and $7.81 established before the guidance was issued.
Shares were up 0.7 percent to $118.01 in after-hours trading following the earnings report. They closed down 1.7 percent at $117.25 during the New York Stock Exchange’s regular trading session.
In the fourth quarter ended Feb. 2, PVH registered a net loss of $37.5 million, or 46 cents a diluted share, versus net profit of $80.7 million, or $1.09, in the year-ago quarter. Stripping out a series of charges related to its acquisition and integration of Warnaco, the sale of G.H. Bass & Co. and other items, the adjusted profit was $1.43 a diluted share, 1 cent better than the consensus estimate of analysts and 3 cents above its own guidance.
Revenues in the quarter rose 25.4 percent to $2.05 billion from $1.64 billion, with $479 million of the increase coming from the acquired Warnaco businesses. Revenues in the Tommy Hilfiger business and the Calvin Klein businesses predating the Warnaco acquisition were up 2 percent, or $18 million, the company said, while the sale of G.H. Bass & Co. to G-III Apparel Group Ltd. on the first day of the quarter translated into $75 million in lost revenues, pushing sales in the Heritage Brands businesses, excluding those like Speedo acquired with Warnaco, down 19 percent.
Overall revenues at Tommy Hilfiger — the one business unit not significantly affected by a major acquisition or divestiture during the quarter — were up 1.2 percent to $902 million as North American sales were flat based on “relatively flat” comparable-store sales results. Those results were balanced against a strong performance in Europe, where sales were up 10 percent for both retail and wholesale and comps tracked up 7 percent.
For the full year, net income fell two-thirds to $143.5 million, or $1.74 a diluted share, from $433.8 million, or $5.87, while revenues rose 35.5 percent to $8.19 billion.
The company will hold a conference call this morning to discuss the results and guidance.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast