NEW YORK — Shares of PVH Corp. slipped in after-hours trading Wednesday following the firm’s posting of first-quarter results that were just shy of Wall Street’s consensus estimates.
The shares inched up 0.3 percent Wednesday to close at $130.68 in Big Board trading, but then fell 6.6 percent in early after-market trading on the Nasdaq to $122.
For the three months ended May 4, the company posted $35.3 million in net income, or 42 cents a diluted share, against a $10.3 million net loss, or 13 cents, a year ago. Excluding certain adjustments, such as the integration of The Warnaco Group Inc. and related restructuring charges, plus the costs incurred related to the sale of the G.H. Bass business, among others, net income was $122.1 million or $1.47 a diluted share, versus $155.6 million, or $1.91, a year ago.
Total revenues for the quarter rose 2.8 percent to $1.96 billion from $1.91 billion, which included a 2.7 percent increase in net sales to $1.87 billion from $1.82 billion. The balance of revenues was from royalty income and advertising and other income.
Wall Street analysts on average were expecting adjusted earnings per share at $1.49 on revenues of $1.98 billion.
Emanuel Chirico, chairman and chief executive officer, said, “We are pleased with our first-quarter results, which were in line with our expectations.…”
He noted that the global macroeconomic challenges in the retail environment from the first quarter have continued into the second three-month period, and said, “[W]e believe our North American businesses will experience margin pressure in the second quarter and we have lowered our full-year earnings per share guidance to reflect this. We will continue to make the previously planned strategic investments, particularly in the acquired Calvin Klein businesses, in order to unlock the full global potential of the Calvin Klein businesses over the long term.”
Chirico explained that the first half of fiscal year 2015 will be pressured by the firm’s strategic investments.
According to the company, revenue in the Calvin Klein business rose 9 percent to $665 million from $608 million. On an adjusted basis, excluding $30 million in sales returns, revenues a year ago for the Calvin Klein business would have been $638 million. In the Tommy Hilfiger business, revenues increased 6 percent to $862 million from $811 million. The increases were partially offset by a revenue decline of 2 percent in the firm’s Heritage Brands business, excluding the $47 million of 2013 Bass revenue.
For the year, the company’s EPS guidance is in the range of $7.30 to $7.40 on a non-GAAP basis, reflecting a $10 million increase in Calvin Klein advertising expense over the prior year. Revenue is estimated to grow 5 percent to $8.5 billion, excluding $176 million in revenues from the Bass business.
For the second quarter, EPS is expected in the range of $1.40 to $1.45 on a non-GAAP basis, with revenues forecasted at $2 billion, excluding $62 million related to the Bass business.
“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