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.
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews
“Stranger Things” is getting a new cast member for season 2. Meet @sadiesink_, the 15-year-old who will be joining the Netflix series for its new season. You may recognize her from “The Glass Castle” with Brie Larson and Woody Harrelson, but the Texas native’s next role goes in an entirely different direction. She describes her character, Max, as “a rough and tumble skater girl [who] becomes friends with the boys at school.” The second season debuts on October 27. (📷: @jgreenery) #wwdeye
Amid the Harvey Weinstein controversy, there’s another sector that’s being put under the spotlight for sexual abuse: the modeling industry. While rumors about abuse and sexual harassment of female and male models — and the photographers, agents and others who perpetrated it — have circulated within the fashion world for years, model @cameronrussell started posting stories from models on Instagram last week about abusive situations they’ve encountered — from sexual harassment and molestation to attempted rape. Over 75 have weighed in so far. Read more on WWD.com. Link in bio. #wwdnews
To celebrate its 16th anniversary, @dylanscandybar tapped designers and celebrities to create mosaics out of candy. The mosaics will be auctioned off to support the philanthropic cause of each participant’s choice. Pictured here is the mural created by @aliceandolivia's Stacey Bendet. For a first look at some of the other artwork being unveiled tonight, go to WWD.com. #wwdeye
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye
"Nowadays when life is not so happy with everything going on in the world, I think people come to me for a little bit of whimsy and color and fun." - Designer Rebecca De Ravenel on her cult-favorite jewelry line. (📸 : @vsteves) #wwd40
“Everyone is talking about how the retail industry is struggling, but I think it’s an incredible time because brands who are doing something different and innovative are setting themselves up for the future,” said @adamgoldston, who founded the luxury athletic brand @apl with his brother @ryangoldsten. The Goldston’s are part of WWD’s 40 under 40: a group of industry notables. See the rest of the list on WWD.com. (📷: @vsteves) #wwd40
@eyeswoon blogger Athena Calderone debuted her first-ever cookbook, “Cook Beautiful,” which is heavily centered on the presentation and visual expression of food. Pictured here are her miso glazed carrots from the book. Get the recipe on WWD.com. (📷: @johnny_miller_) #wwdeye