Warnaco Acquisitions Boosts PVH’s Q1 Sales

Calvin Klein Summer Whites

Calvin Klein Summer Whites

New York—While PVH Corp., parent to Tommy Hilfiger and Calvin Klein, reported Wednesday a first quarter loss less than expected and sales better than expected helped by its recent acquisition of Warnaco Group.

For the quarter ended May 5, the former Phillips-Van Heusen posted a loss of $20.1 million, or 25 cents a share, compared with a profit of $95.4 million, or $1.30 a share, a year ago. Excluding one-time charges, the company’s adjusted earnings were $1.91 a share—ahead of analysts’ average estimate for $1.35 a share.

Net revenues increased 33.8% to $1.91 billion mostly in line with analysts’ estimates. The company’s purchase of Warnaco Group for $2.9 billion in February helped boost PVH’s control of the Calvin Klein brand and also gave the company Speedo, Warner’s and Olga brands.

Calvin Klein Sales More Than Double

By division, Calvin Klein sales more than doubled, rising to $607.9 million from $262.1 million in the year-ago quarter thanks to the Warnaco purchase and a 4% increase in comparable store sales at the brand’s North American retail stores. International comps, however, were down 5%.

Revenues at Tommy Hilfiger increased 5.3% to $811.4 million, primarily due to 14% growth in North American business, a 5% increase in retail comp sales, and strong wholesale revenues.

The company’s Heritage Brands revenues increased 24.3% to $490.9 million, primarily driven by the Warnaco acquisition, partially offset by 7% negative impact due to the company’s exit from Izod and Timberland businesses.

PVH backed its previous full year forecast for an adjusted profit of $7 a share on about $8.2 billion in revenue. For its second quarter, PVH expects adjusted net income of $`.35 a share on sales of $1.9 billion.

Analysts’ consensus expects annual earnings of $7.03 a share on sales of $8.05 billion. And for the company’s second quarter, they estimate earnings of $1.35 a share on sales of $1.81 billion.


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Jeff Prine

Jeff Prine, Editor at Large, Accessories Magazine
Jeff returns as a regular contributor to Accessories magazine. Initially Jeff worked as senior editor at Accessories more than 20 years ago and his love of the industry has followed him until present. Since his tenure here, Jeff has continued to report jewelry, watch and other luxury goods trends as executive editor at Modern Jeweler magazine, fashion director at Lustre, and as contributor on products and trends for consumer and trade publications and websites. In addition to his editorial experience, Jeff also served as an adjunct instructor for accessories merchandising at Fashion Institute of Technology. jeffp@busjour.com