NEW YORK — Double-digit growth at Tommy Hilfiger and Calvin Klein supplied more than enough ammunition to help PVH Corp. overcome lingering weakness in its Izod sportswear business and post fourth-quarter profits above its own estimates and those of Wall Street.
Investors were heartened by revised guidance from the New York-based apparel powerhouse calling for adjusted earnings of between $6.10 and $6.20 for the full year, ahead of the $5.90 to $6 projection provided in January. PVH said profit growth would be “heavily weighted” toward the second half of the year, in contrast to its projection two months ago that earnings expansion would “occur entirely in the second half of the year.”
In the three months ended Jan. 29, net income grew 55.7 percent to $81.2 million, or $1.11 a diluted share, from $52.2 million, or 72 cents, in the prior-year quarter. Stripping out nonrecurring items ranging from costs associated with the acquisition and integration of Tommy Hilfiger to the early termination of its Timberland license following the brand’s acquisition by VF Corp., adjusted EPS for the quarter was $1.18, or 8 cents above analysts’ consensus estimate.
Revenues in the quarter rose 9.6 percent to $1.53 billion from $1.4 billion a year ago, with respective increases of 15.8 percent and 11.9 percent in the Tommy Hilfiger and Calvin Klein businesses, to $815.8 million and $278.5 million. Those gains were offset by a 1.4 percent decline in sales of its Heritage Brands group, to $438.5 million. While its Heritage Dress Furnishings business grew well, up 8.5 percent to $145.6 million, difficulties at Izod lowered the group’s sportswear sales by 17 percent to $121.1 million and were the principal culprit in a 54.8 percent drop in its operating income, which fell to $9.7 million.
Together, the company’s two designer brands generated $1.09 billion in fourth quarter income, representing 71.4 percent of the company total, versus $953.6 million, or 68.2 percent, a year ago. Similarly, Tommy Hilfiger’s operating income rose 62.2 percent to $55.7 million while Calvin Klein’s expanded 6.2 percent to $70.2 million.
Emanuel Chirico, chairman and chief executive officer of PVH, commented, “Despite the uncertainty that has been impacting the overall market, we are optimistic that the strength of our brands, driven by Calvin Klein and Tommy Hilfiger, will continue to generate solid revenue and profitability growth in 2012.”
He added an optimistic note about Heritage Brands, projecting revenue growth of 2 to 3 percent for the year, and asserting that “more favorable product costs in the second half of 2012 will benefit these businesses and allow them to gradually return to their historical levels of profitability.”
For the full year, net income increased nearly sixfold, to $317.9 million, or $4.36 a diluted share, as revenues expanded 27 percent to $5.89 billion.
The company will hold a conference call today to discuss the results.
“What he has done at Vuitton is really exceptional,” said @gameofthrones’ actress Gwendoline Christie on @mrkimjones’ final show for @louisvuitton. “He has rebooted luxury in terms of making it commercial, viable and contemporary. And most importantly artistic. He has never compromised his artistic vision for the sake of commodity.” (📷: @zefashioninsider)
After seeing a demand for men’s wear from its customers, British contemporary women’s wear label @ariesarise has added a men’s wear component and will launch a unisex collection with @mrporterlive. The 20-piece collection includes jackets, denim, logo T-shirts and more with deconstructed ‘90s vibes. Set to launch on January 18, you can shop the pieces on Aries’ website and on mrporter.com. #wwdfashion
“And so spending so much time with a character who thinks like that, inevitability you try and analyze yourself and go back and think about your own demons and dark chapters that you had in your life,” says @thedanielbruhl of his role in TNT’s “The Alienist.” The show, set in the Gilded Age of New York, also stars Dakota Fanning and Luke Evans. Head to WWD.com to read about how 39-year-old Brühl prepared for the role and why he thinks the show is so relevant to today #wwdeye ( 📷: @Eriktanner)
Now that Celine Dion’s collection has topped $10 million in sales, the pop superstar, fashion icon and newly-minted industry player is eyeing growth in Asia. Read the full report by @tiffanyap, link in bio. #wwdnews #celinedion
“My personal philosophy to beauty is paying attention to oneself. I love to be outdoors, lots of fresh air, trying to take care of yourself as best you can. I always notice that comes through,” says Felicity Jones, the global face of @shiseido-owned @cledepeaubeauteus, which launches today. Head to WWD.com to read more about the actress’ love for beauty and how she prepared for her new role in “The Basis of Sex,” playing the young Ruth Bader Ginsburg. #wwdbeauty (📷: @dandoperalski)
Among the familiar faces at @off____white’s show was a surprise figure: Japanese artist @takashipom, pictured here on Wednesday morning. Other show-goers included @jerrylorenzo, who spoke about his upcoming project: a @nike collaboration for back to school, with designs inspired by his childhood on the West Coast. Sitting in the front row were Future, Don Crawley, @miguel and more. See the rest of the photos on WWD.com #wwdeye (📷: Stephane Feugere)
According to @laurentsai, former “Terrace House: Aloha State” cast member, she didn’t know she was auditioning for the Japanese version of “Real World.” “I was telling a couple of my friends and someone’s like, ‘That sounds a lot like Terrace House.’ I was like, ’No it can’t be.’” Turns out, it was. But Tsai isn’t just a reality star — she’s an illustrator who has worked with Starbucks Japan and most recently, she’s dipping her toes into the fashion world. Head to WWD.com to read about her time on the show, modeling and her art. #wwdeye (📷: @danieldorsa)
More changes are coming to New York Fashion Week: Beginning with the spring 2019 collection, @alexanderwangny will move his New York show to June from September, adopting a biannual schedule with collections shown in June and December. Additionally, the @cfda is planning for an official summer/winter fashion season taking place as soon as June and December 2018. Read more about the upcoming changes on WWD.com. #wwdnews #wwdfashion (📷: @slovekinpics)