Calvin Klein Helps Mother Company PVH To Tide Over Difficulties

American fashion

Group PVH (Phillips-Van Heusen Corp) on Wednesday announced its third quarter earnings report, which was strongly influenced by the US dollar, and both sales and profits fell.

But if we exclude the monetary factors and the related costs associated with the integration of Warnaco Group Inc., the company's performance is actually better than expected, thanks to the strong international business performance of its brand Calvin Klein and Tommy Hilfiger.

Net profit fell 1.7% to 221 million 900 thousand US dollars (diluted US $2.69 per share) from US $225 million 700 thousand (diluted $2.71 per share) in the same period last year.

Total sales fell 3% to $2 billion 160 million from $2 billion 230 million in the same period last year.

Gross margins accounted for 170 percentage points to 47.89% of sales.

Adjusted earnings per share (EPS) were $2.66 (mainly affected by exchange losses of $0.44 per share).

Excluding exchange rate factors, adjusted earnings per share 3.1 US dollars, an increase of 21% compared with the same period last year.

According to the constant exchange rate, total sales increased by 3% over the same period last year.

According to the constant exchange rate, sales of Calvin Klein increased by 7% over the same period, and Tommy Hilfiger increased by 4% over the same period last year.

Other traditional brands of the company are being restructured, and sales are down 5% this year.

In the report, the company pointed out that inventories at the end of the third quarter increased by 7% compared with the same period last year, including an additional 4% of total cost arising from international business.

Facing the most challenging

Environment, the company reiterated that earnings per share (EPS) will be between us $6.9 per share and US $~7 per year.

PVH board chairman and CEO Emanuel Chirico said that although the US economic growth slowed down in this quarter, the company's performance was better than expected (especially Calvin Klein and Tommy Hilfiger), and will continue to enhance the tradition in the future.

Development advantages.

Chirico said: "the number of overseas tourists in the US market has dropped sharply, the consumption situation has weakened and the climate has been exceptionally warm.

These factors led to the weak performance of the fashion industry in the second half of the third quarter and the fourth quarter.

The same store sales in North America are basically the same as last year.

The global economic fluctuation will continue at the end of this year to next year, and the exchange rate and consumption trend is still unpredictable.

But CEO expressed confidence in the fourth quarter (New Year and Christmas holidays). Calvin Klein and Tommy Hilfiger help the company tide over the difficulties.

"We will seize the strategic growth opportunities, believe that the effective implementation of business strategies, while increasing the investment in the company's world-class brands, balance of payments, and the unremitting efforts of the employees will make the company develop rapidly and create benefits for the shareholders."