Market Overview

Summary of Important Points from PVH Corp. Earnings Conference Call

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Overview of Q1 Results:

•EPS up 43.6 percent to $1.91 per share; GAAP loss per share was $(0.25)

•Revenue came in at $1.94 billion, beating consensus estimate of $1.91 billion

•Sales grew 35.66 percent year over year, landing at $1.43 billion: primarily driven by the newly acquired Warnaco businesses

•Royalties were flat, primarily due to lost in royalties from Warnaco acquisition

•Earnings before interest and taxes on a non-GAAP basis increased 51 percent to $241 million year over year

Segment Review

Calvin Klein

•Revenue landed at $638 million, a 137 percent increase compared to prior year's first quarter: driven by strong business in China and Brazil, partially offset by weakness in Korea, where comp sales were running down

•Comparable store sales in North America increased 4 percent

•Earnings before interest and taxes increased from $58 million to $106 million: attributed to increase in North America retail business sectors

Tommy Hilfiger

•Revenue increased 5 percent to $811 million

•15 percent operating increase

•Comparable store sales increased 5 percent

•Strong increase in North American wholesale was primarily due to excess shipments that were originally planned for the second quarter

•Earnings before interest and taxes increased 15 percent to $118 million

Heritage Brands

•Revenue increased 24 percent to $491 million: partially offset by a lost of $28 million in Izod women's and Timberland wholesale sportswear

•Earnings before interest and taxes increased 117 percent to $39 million

International

•Revenue flat throughout first quarter

•Strong growth in central and northern Europe, partially offset weakness in Italy

Guidance for Fiscal 2013

•Full year revenue expected to be about $8.2 billion

•Revenue in Calvin Klein expected to increase 139 percent: primarily driven by Warnaco jeans and underwear

•Calvin Klein margin at 15.5 percent

•Revenue in Tommy Hilfiger expected to increase 5 percent

•Tommy Hilfiger margin at 14 percent

•Revenue in Heritage Brands expected to increase 22 percent: primarily driven by the newly acquired Speedo swimwear and Warner's and Olga women's intimate apparel

•Heritage Brands margin at 8 percent

•Operation for the year expected to increase 6 percent

•Operation margin about 11 percent

•Synergies looked to grow 25 million for the following quarters

•Closing of about 25 stores in Europe in the duration of this year

•Full year 2013 EPS guidance reiterated at $7.00

•Second quarter 2013 EPS is projected to be $1.35 as oppose to $1.28 same period last year

PVH Corp. (NYSE: PVH) closed on Wednesday at $111.28.

Posted-In: Earnings News Guidance Economics Markets Reviews

 

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