Most Recent Articles In Financial
Latest Financial Articles
- Update: Dow Falls 300 Points on Jobs Report
- August Sales Slump, But In-store Conversions Spike
- Specialty Stores Post Employment Gains in August
More Articles By
NEW YORK — Shares of PVH Corp. climbed more than 7 percent in after-hours trading after the company reported first-quarter results that substantially exceeded both Wall Street and its own expectations.
This story first appeared in the June 13, 2013 issue of WWD. Subscribe Today.
Despite the sizeable beat — earnings per share on a non-GAAP basis were $1.91, 56 cents above the $1.35 consensus of analysts — PVH reiterated its full-year guidance based on “the short amount of time that has passed since closing the Warnaco acquisition and the complexity of the integration.”
PVH concluded its $2.9 billion acquisition of Warnaco Group Inc. on Feb. 13 and has since said that costs for the integration and the rebuilding of the Calvin Klein jeanswear and underwear businesses previously operated by Warnaco would exceed initial projections.
On the basis of generally accepted accounting principles, PVH’s net loss for the quarter ended May 5 was $20.1 million, or 25 cents a share, versus net income of $95.5 million, or $1.30, in the year-ago quarter. The higher non-GAAP figure excludes an array of expenses related to the purchase and subsequent integration, including tax effects.
Revenue was up 33.8 percent to $1.91 billion from $1.43 billion. Without the net contribution of $487 million from former Warnaco businesses, revenue declined fractionally to $1.42 billion from $1.43 billion. The 2012 figure included $28 million in revenues surrendered from the Izod women’s and Timberland sportswear businesses exited by PVH last year.
PVH shares Wednesday were up 8 cents, or 0.1 percent, to $111.28 in regular trading but added $7.22, or 6.5 percent, to move to $118.50 following the after-market earnings report.
Revenues and operating income were up at all three segments of PVH’s business — Tommy Hilfiger, Calvin Klein and Heritage Brands.
Noting the ongoing strength of the Hilfiger and Klein businesses, Emanuel Chirico, chairman and chief executive officer of PVH, stated, “We were also pleased to see the strong operating improvement in our preexisting Heritage Brands wholesale business, primarily in the sportswear division, and believe the Speedo, Warner’s and Olga brands are proving to be strategic complements to our preexisting Heritage Brands portfolio.”
PVH will hold a conference call this morning to discuss the quarterly results.